Diageo faces a deteriorating fundamental outlook as revenue growth has reversed to -2.6% in 2026Q4, with operating margins compressing to 25.2% from peak levels, suggesting weakening consumer demand and eroding pricing power.
Price trend, volume and key moving averages
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Diageo's revenue momentum has shifted to contraction with a -2.6% YoY decline in 2026Q4, while gross margins have compressed to 57.7% from a peak of 62.9% in 2022, indicating input cost pressures and less favorable product mix.
Diageo boasts over 200 premium brands sold globally, reinforcing its leadership in the spirits and beer industry.
The company's premium brand positioning allows it to maintain resilient margins through pricing power.
With operations in nearly 180 countries, Diageo benefits from geographic diversification and reduced market-specific risks.
Trailing total returns as of 11/8/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).
Check whether operating performance supports the current valuation.
Recent results and news deserve attention only when they alter the forward view.
| Quarter | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|
Q3 2026Latest Aug 6, 2026 | $2.80+9.8% vs $2.55 | $9.2B+0.4% vs $9.1B |
Q1 2026 Feb 25, 2026 | $3.80+3.5% vs $3.67 | $10.5B-0.6% vs $10.5B |
Q3 2025 Aug 5, 2025 | $2.64+6.5% vs $2.48 | $9.3B+0.1% vs $9.3B |
Q1 2025 Feb 4, 2025 | $3.91-8.0% vs $4.25 | $10.9B+1.4% vs $10.7B |
Diageo NYSE: DEO reported modest organic sales growth in its fiscal 2027 first quarter as gains across most regions offset continued weakness in North America, and the spirits maker reiterated its full-year outlook.
Diageo plc (DEO) Q1 2027 Sales/Trading Call Transcript
Spirits group Diageo said it is moving in the right direction in the challenged American market, where some of its biggest labels continue to sell poorly.
Guinness brewer Diageo keeps outlook after quarterly organic net sales edge higher
Benchmark DEO against direct peers instead of judging its metrics in isolation.
Key metrics vs top competitors for Diageo plc (DEO)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $99.76 | $55.46B | 31.97 | -3.17% | 8.84% | 13.27% | 3.31% | |
| $141.97 | $24.25B | 12.59 | -10.47% | 20.9% | 22.76% | 2.87% | |
| $26.41 | $2.72B | -25.82 | 120.01% | -73.04% | -9.69% | — | |
| $220.64 | $2.3B | -30.88 | 3.69% | -3.47% | -9.81% | — | |
| $16.98 | $363.61M | -1.45 | -23.77% | -51.44% | -40.34% | 2.85% | |
| $1.70 | $8.47M | -3.79 | 53.74% | -5.92% | -3.34% | 11.42% |
Diageo plc (DEO) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
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Diageo plc (DEO) stock FAQ — growth, dividends, profitability & financials explained
Diageo plc (DEO) reported $19.60B in revenue in fiscal year 2026. That is 46% more than the $13.44B of fiscal year 1997.
Diageo plc (DEO) revenue fell by 3.2% in fiscal year 2026, compared with the prior fiscal year.
Yes. Diageo plc (DEO) earned $1.73B in net income in fiscal year 2026 (a 8.8% net margin).
Yes. Diageo plc (DEO) pays a dividend that yields 3.31% at the current price, a moderate yield.
Diageo plc (DEO) had a return on equity (ROE) of 13.3% in fiscal year 2026. That is in line with the market's typical 10-15%.
Diageo plc (DEO) generated $3.19B in free cash flow in fiscal year 2026.
