Revenue growth has shifted into a sharp contraction, with the most recent quarterly figures showing a 29.1% decline alongside operating margins that have fluctuated down to 31.1%.
| Metric | TTM | Jun'25 | Jun'24 | Jun'23 | Jun'22 | Jun'21 | Jun'20 | Jun'19 | Jun'18 | Jun'17 | Jun'16 | Jun'15 | Jun'14 | Jun'13 | Jun'12 | Jun'11 | Jun'10 | Jun'09 | Jun'08 | Jun'07 | Jun'06 | Jun'05 | Jun'04 | Jun'03 | Jun'02 | Jun'01 | Jun'00 | Jun'99 | Jun'98 | Jun'97 |
|---|
| Sales/Revenue | 37.37B | 20.25B | 20.27B | 20.55B | 15.45B | 12.73B | 11.75B | 12.87B | 12.16B | 12.05B | 10.48B | 10.81B | 10.26B | 11.43B | 10.76B | 9.94B | 9.78B | 9.31B | 8.09B | 7.48B | 7.26B | 6.68B | 8.89B | 9.44B | 11.28B | 12.82B | 11.87B | 11.79B | 17.7B | 13.44B |
| Revenue Growth % | -4.22% | -0.12% | -1.39% | 33.02% | 21.35% | 8.35% | -8.67% | 5.79% | 0.94% | 14.93% | -3.03% | 5.41% | -10.28% | 6.23% | 8.31% | 1.6% | 5.04% | 15.09% | 8.14% | 3.04% | 8.73% | -24.9% | -5.82% | -16.33% | -12% | 8.01% | 0.64% | -33.35% | 31.68% | - |
| Cost of Goods Sold | 14.95B | 8.07B | 8.07B | 8.29B | 5.97B | 5.04B | 4.65B | 4.87B | 4.63B | 4.68B | 4.25B | 4.61B | 4.03B | 4.47B | 4.26B | 4.01B | 4.1B | 3.89B | 3.25B | 3B | 2.92B | 2.6B | 6.98B | 4.82B | 4.5B | 4.81B | 0 | 0 | 0 | 0 |
| COGS % of Revenue | - | 39.87% | 39.82% | 40.33% | 38.66% | 39.57% | 39.6% | 37.82% | 38.1% | 38.84% | 40.54% | 42.63% | 39.28% | 39.1% | 39.57% | 40.36% | 41.91% | 41.81% | 40.11% | 40.14% | 40.23% | 38.98% | 78.51% | 51.05% | 39.87% | 37.48% | - | - | - | - |
| Gross Profit | 22.42B | 12.17B | 12.2B | 12.27B | 9.48B | 7.7B | 7.1B | 8B | 7.53B | 7.37B | 6.23B | 6.2B | 6.23B | 6.96B | 6.5B | 5.93B | 5.68B | 5.42B | 4.84B | 4.48B | 4.34B | 4.07B | 1.91B | 4.62B | 6.78B | 8.02B | 11.87B | 11.79B | 17.7B | 13.44B |
| Gross Margin % | 59.99% | 60.13% | 60.18% | 59.67% | 61.34% | 60.43% | 60.4% | 62.18% | 61.9% | 61.16% | 59.46% | 57.37% | 60.72% | 60.9% | 60.43% | 59.64% | 58.09% | 58.19% | 59.89% | 59.86% | 59.77% | 61.02% | 21.49% | 48.95% | 60.13% | 62.52% | 100% | 100% | 100% | 100% |
| Gross Profit Growth % | - | -0.21% | -0.55% | 29.4% | 23.18% | 8.41% | -11.29% | 6.27% | 2.16% | 18.22% | 0.5% | -0.42% | -10.54% | 7.07% | 9.74% | 4.31% | 4.85% | 11.83% | 8.2% | 3.2% | 6.5% | 113.19% | -58.64% | -31.89% | -15.36% | -32.48% | 0.64% | -33.35% | 31.68% | - |
| Operating Expenses | 12B | 7.84B | 6.2B | 6.72B | 5.07B | 3.96B | 4.96B | 3.92B | 3.84B | 3.81B | 3.48B | 3.41B | 3.52B | 3.53B | 3.35B | 3.33B | 3.11B | 2.83B | 2.54B | 2.36B | 2.29B | 2.35B | -549.5K | 7.57B | 9.16B | 11.18B | 9.72B | 9.98B | 15.11B | 10.89B |
| OpEx % of Revenue | - | 38.72% | 30.57% | 32.69% | 32.81% | 31.13% | 42.21% | 30.47% | 31.55% | 31.63% | 33.24% | 31.5% | 34.33% | 30.89% | 31.08% | 33.52% | 31.77% | 30.44% | 31.41% | 31.53% | 31.61% | 35.2% | -0.01% | 80.21% | 81.23% | 87.19% | 81.92% | 84.6% | 85.39% | 81.02% |
| Selling, General & Admin | 9.26B | 3.66B | 3.69B | 3.66B | 2.72B | 2.16B | 1.84B | 2.04B | 1.88B | 1.8B | 1.56B | 1.63B | 1.62B | 1.79B | 1.69B | 1.54B | 1.42B | 1.33B | 1.24B | 1.16B | 1.13B | 1.01B | 0 | 0 | 4.34B | 3.51B | 0 | 0 | 0 | 0 |
| SG&A % of Revenue | - | 18.09% | 18.21% | 17.82% | 17.61% | 16.99% | 15.67% | 15.87% | 15.47% | 14.92% | 14.9% | 15.07% | 15.79% | 15.63% | 15.71% | 15.48% | 14.51% | 14.25% | 15.32% | 15.53% | 15.52% | 15.17% | - | - | 38.49% | 27.41% | - | - | - | - |
| Research & Development | 0 | 0 | 0 | 0 | 43M | 40M | 34M | 35M | 36M | 33M | 28M | 0 | 0 | 0 | 0 | 0 | 13M | 17M | 17M | 17M | 18M | 1.01B | 0 | 15M | 28M | 71M | 69M | 61M | 91M | 65M |
| R&D % of Revenue | - | - | - | - | 0.28% | 0.31% | 0.29% | 0.27% | 0.3% | 0.27% | 0.27% | - | - | - | - | - | 0.13% | 0.18% | 0.21% | 0.23% | 0.25% | 15.17% | - | 0.16% | 0.25% | 0.55% | 0.58% | 0.52% | 0.51% | 0.48% |
| Other Operating Expenses | 2M | 4.18B | 2.51B | 3.06B | 2.35B | 1.8B | 3.12B | 1.88B | 1.96B | 20M | 123M | 373M | 118M | -20M | 360M | 162M | -284M | -328M | -354M | -298M | -272M | -276M | -581M | -605M | -249M | 102.34M | 9.65B | 9.92B | 15.02B | 10.82B |
| Operating Income | 10.41B | 4.33B | 6B | 5.55B | 4.41B | 3.73B | 2.14B | 4.04B | 3.69B | 3.56B | 2.84B | 2.8B | 2.71B | 3.43B | 3.16B | 2.6B | 2.57B | 2.42B | 2.23B | 2.16B | 2.04B | 1.73B | 1.87B | 1.86B | 1.65B | 1.38B | 1.78B | 1.52B | 2.35B | 1.97B |
| Operating Margin % | 27.87% | 21.41% | 29.61% | 26.99% | 28.53% | 29.3% | 18.18% | 31.41% | 30.35% | 29.54% | 27.1% | 25.87% | 26.39% | 30.01% | 29.34% | 26.12% | 26.32% | 25.97% | 27.52% | 28.86% | 28.15% | 25.92% | 21.04% | 19.71% | 14.65% | 10.79% | 15.01% | 12.86% | 13.31% | 14.62% |
| Operating Income Growth % | - | -27.76% | 8.18% | 25.81% | 18.17% | 74.59% | -47.13% | 9.51% | 3.71% | 25.27% | 1.57% | 3.32% | -21.1% | 8.64% | 21.7% | 0.82% | 6.45% | 8.63% | 3.1% | 5.63% | 18.08% | -7.48% | 0.54% | 12.58% | 19.44% | -22.33% | 17.47% | -35.58% | 19.85% | - |
| EBITDA | 11.55B | 6.05B | 6.49B | 6.84B | 4.9B | 4.18B | 2.62B | 4.42B | 4.06B | 3.92B | 3.2B | 3.24B | 3.34B | 3.83B | 3.57B | 2.95B | 2.95B | 2.72B | 2.46B | 2.37B | 2.26B | 1.97B | 2.1B | 2.14B | 1.97B | 1.76B | 2.13B | 1.85B | 2.84B | 2.31B |
| EBITDA Margin % | 30.92% | 29.9% | 32.04% | 33.3% | 31.7% | 32.81% | 22.27% | 34.32% | 33.37% | 32.53% | 30.48% | 29.94% | 32.52% | 33.53% | 33.16% | 29.66% | 30.12% | 29.19% | 30.4% | 31.67% | 31.1% | 29.53% | 23.56% | 22.64% | 17.43% | 13.74% | 17.94% | 15.7% | 16.04% | 17.17% |
| EBITDA Growth % | -10.37% | -6.79% | -5.11% | 39.73% | 17.23% | 59.65% | -40.74% | 8.8% | 3.55% | 22.65% | -1.27% | -2.97% | -12.99% | 7.42% | 21.11% | 0.03% | 8.39% | 10.53% | 3.8% | 4.92% | 14.5% | -5.87% | -1.97% | 8.64% | 11.7% | -17.32% | 15.01% | -34.77% | 23.06% | - |
| D&A (Non-Cash Add-back) | 1.14B | 1.72B | 493M | 1.3B | 489M | 447M | 480M | 374M | 368M | 361M | 355M | 440M | 629M | 403M | 411M | 352M | 372M | 300M | 233M | 210M | 214M | 241M | 224M | 276M | 314M | 377M | 348M | 335M | 484M | 342M |
| EBIT | 9.53B | 4.64B | 6.75B | 6.76B | 4.45B | 3.84B | 3.22B | 4.4B | 5.44B | 3.7B | 3.1B | 3.29B | 2.91B | 3.34B | 5.58B | 4.69B | 4.25B | 4.54B | 5.15B | 2.28B | 2.27B | 3.1B | 3.47B | 3.15B | 3.24B | 2.29B | 2.9B | 2.9B | 1.05B | 2.95B |
| Net Interest Income | -1.3B | -831.83M | -885M | -712M | -463.86M | -505.16M | -420.52M | -343.43M | -362.15M | -451.45M | -431.14M | -677.75M | -635.28M | -694.73M | -694.25M | -604.35M | -665.32M | -848.82M | -678.69M | -206M | -174M | -141M | 154.96M | -315M | 180M | -491.63M | -545.07M | -506.31M | -703.64M | -479.5M |
| Interest Income | 370.44M | 203.94M | 400M | 409M | 168.8M | 134M | 241.74M | 248M | 155M | 148M | 156M | 170M | 109M | 99M | 107M | 278M | 469M | 104M | 130M | 126M | 55M | 130M | 154.96M | 30M | 180M | 103M | 106M | 111M | 249M | 113M |
| Interest Expense | 1.67B | 1.04B | 1.28B | 1.12B | 632.66M | 496M | 662.26M | 506M | 409M | 459M | 470M | 542M | 464M | 518M | 510M | 397M | 462M | 604M | 419M | 332M | 229M | 271M | 0 | 351M | 0 | 450M | 466M | 432M | 671M | 393M |
| Other Income/Expense | -2.42B | -798M | -541M | 95M | -73.58M | -25M | -115.7M | -887.36M | -1.09B | -1.07B | -934.15M | -1.47B | -1.9B | -318M | -250M | -411M | -1.78B | -1.99B | -2.51B | -213M | -29M | -176M | 283M | 270M | -248M | 145M | -501.17M | -249M | -7M | -2.03B |
| Pretax Income | 7.99B | 3.54B | 5.46B | 5.64B | 4.39B | 3.71B | 2.04B | 4.24B | 3.74B | 3.56B | 2.86B | 2.93B | 2.71B | 3.12B | 3.12B | 2.36B | 2.24B | 1.99B | 2.09B | 2.1B | 2.15B | 1.93B | 1.97B | 675M | 2.38B | 1.72B | 1.45B | 1.47B | 2.37B | 1.33B |
| Pretax Margin % | 21.38% | 17.47% | 26.94% | 27.45% | 28.39% | 29.11% | 17.38% | 32.91% | 30.75% | 29.54% | 27.26% | 27.12% | 26.43% | 27.32% | 29% | 23.75% | 22.89% | 21.37% | 25.87% | 28% | 29.56% | 28.83% | 22.15% | 7.15% | 21.07% | 13.43% | 12.22% | 12.44% | 13.38% | 9.91% |
| Income Tax | 2.06B | 999M | 1.29B | 1.16B | 1.05B | 907M | 589M | 898M | 596M | 732M | 496M | 466M | 447M | 529M | 1.04B | 343M | 477M | 286M | 522M | 678M | 181M | 599M | 487M | 487M | 632M | 435M | 401M | 440M | 909M | 546M |
| Effective Tax Rate % | 25.83% | 28.24% | 23.7% | 20.61% | 23.91% | 24.47% | 28.83% | 21.2% | 15.94% | 20.57% | 17.35% | 15.89% | 16.49% | 16.94% | 33.26% | 14.53% | 21.3% | 14.37% | 24.94% | 32.36% | 8.43% | 31.12% | 24.73% | 72.15% | 26.59% | 25.26% | 27.64% | 29.99% | 38.39% | 40.99% |
| Net Income | 5.49B | 2.35B | 3.87B | 4.45B | 3.94B | 2.66B | 1.73B | 3.16B | 3.02B | 2.66B | 2.24B | 2.38B | 2.25B | 2.48B | 1.94B | 1.9B | 1.63B | 1.6B | 1.52B | 1.49B | 1.91B | 1.34B | 1.39B | 97M | 1.66B | 1.21B | 976M | 942M | 1.34B | 704M |
| Net Margin % | 14.7% | 11.63% | 19.09% | 21.62% | 25.5% | 20.89% | 14.76% | 24.56% | 24.85% | 22.09% | 21.4% | 22.02% | 21.91% | 21.74% | 18.05% | 19.12% | 16.66% | 17.24% | 18.8% | 19.9% | 26.28% | 20.13% | 15.66% | 1.03% | 14.7% | 9.41% | 8.22% | 7.99% | 7.56% | 5.24% |
| Net Income Growth % | -30.81% | -39.17% | -12.94% | 12.8% | 48.15% | 53.37% | -45.12% | 4.57% | 13.52% | 18.63% | -5.75% | 5.92% | -9.54% | 27.96% | 2.21% | 16.64% | 1.5% | 5.52% | 2.15% | -21.96% | 41.96% | -3.45% | 1335.05% | -94.15% | 37.37% | 23.67% | 3.61% | -29.6% | 90.06% | - |
| Net Income (Continuing) | 5.93B | 2.54B | 4.17B | 4.48B | 4.05B | 2.8B | 1.79B | 3.34B | 3.14B | 2.83B | 2.36B | 2.47B | 2.26B | 2.33B | 1.87B | 1.84B | 1.62B | 1.56B | 1.39B | 2.71B | 3.53B | 2.27B | 2.65B | 2.38B | 2.21B | 2.04B | 1.59B | 1.92B | 717M | 1.35B |
| Discontinued Operations | 0 | 0 | 0 | 0 | -838.25M | 0 | -617.71M | 0 | 0 | -55M | 0 | 0 | -83M | 0 | -11M | 0 | -19M | 2M | 26M | 139M | -1.69B | -1.06B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 1.55B | 2.09B | 2.04B | 1.85B | 1.72B | 1.53B | 1.67B | 1.79B | 1.76B | 1.72B | 1.65B | 1.49B | 767M | 1.07B | 1.22B | 740M | 779M | 705M | 677M | 198M | 179M | 167M | 491M | 529M | 555M | 606M | 574M | 567M | 535M | 502M |
| EPS (Diluted) | 9.85 | 4.24 | 6.92 | 7.84 | 6.76 | 4.52 | 2.96 | 5.20 | 4.84 | 4.24 | 3.56 | 3.80 | 3.56 | 3.96 | 3.08 | 3.04 | 2.60 | 2.56 | 2.36 | 2.20 | 2.68 | 1.80 | 1.84 | 0.12 | 1.96 | 1.44 | 1.16 | 1.04 | 1.72 | 0.68 |
| EPS Growth % | -19.09% | -38.73% | -11.73% | 15.98% | 49.56% | 52.7% | -43.08% | 7.44% | 14.15% | 19.1% | -6.32% | 6.74% | -10.1% | 28.57% | 1.32% | 16.92% | 1.56% | 8.47% | 7.27% | -17.91% | 48.89% | -2.17% | 1433.33% | -93.88% | 36.11% | 24.14% | 11.54% | -39.53% | 152.94% | - |
| EPS (Basic) | - | 4.24 | 6.92 | 7.84 | 6.80 | 4.56 | 2.96 | 5.24 | 4.88 | 4.24 | 3.56 | 3.80 | 3.60 | 3.96 | 3.12 | 3.04 | 2.64 | 2.60 | 2.36 | 2.20 | 2.68 | 1.80 | 1.84 | 0.12 | 2.00 | 1.44 | 1.16 | 1.08 | 1.72 | 0.68 |
| Diluted Shares Outstanding | 557.75M | 557M | 559.75M | 567.75M | 581.25M | 586.25M | 588.5M | 607M | 623.75M | 630.75M | 629.5M | 629.25M | 629.34M | 629.43M | 627.26M | 623.25M | 622.71M | 623.06M | 645.59M | 676.82M | 713M | 743M | 764.37M | 778.25M | 851.13M | 845M | 849.5M | 889.95M | 770.97M | 1.01B |
| Basic Shares Outstanding | 555.75M | 555.5M | 558.5M | 566M | 579.5M | 584.25M | 586.5M | 604.5M | 621M | 628M | 627M | 626.25M | 626.5M | 625.5M | 623.75M | 623.25M | 621.5M | 621.25M | 641.5M | 672M | 710.25M | 743M | 764.37M | 778.25M | 829M | 844M | 848.25M | 883.29M | 770.97M | 1.01B |
| Dividend Payout Ratio | - | 97.62% | 57.93% | 46.46% | 52.88% | 61.88% | 94.91% | 51.36% | 52.32% | 56.91% | 64.3% | 56.32% | 54.63% | 45.27% | 83.79% | 82.31% | 84.46% | 54.21% | 56.34% | 57.62% | 45.28% | 63.17% | 57.47% | 790.72% | 45.72% | 59.94% | - | 111.89% | 71.97% | - |
Distributor inventory channel imbalances
As reported in recent financial statements, Diageo's revenue growth has shifted into negative territory, with the most recent quarterly figures showing a sharp 29.1% decline, signaling a significant departure from the historical growth patterns observed in earlier periods like 2023Q2 where revenue expanded by 39.8%.
The abrupt contraction in top-line performance suggests that the company is struggling to maintain momentum in key markets, likely exacerbated by inventory de-stocking issues. Investors should monitor whether this represents a temporary cyclical correction or a more permanent erosion of the brand's pricing power in the premium spirits segment.
According to the latest income statement data, Diageo's gross margin has fluctuated between 57.5% and 62.9% over the last ten quarters, reflecting the inherent volatility in managing a global portfolio of aged spirits during periods of shifting consumer demand and rising input costs.
While the company maintains a robust gross margin profile, the recent compression to 61.0% in 2026Q2 suggests that inflationary pressures on raw materials like agave and glass are beginning to outpace the company's ability to push through price increases. This trend warrants investigation into the sustainability of the current premiumization strategy.
Based on reported figures, operating margins have experienced significant volatility, dropping from a peak of 34.5% in 2022Q2 to 31.1% in the most recent quarter, indicating that the company's ability to scale operating income relative to gross profit has become increasingly inconsistent in the current environment.
The lack of consistent operating leverage suggests that SG&A expenses are not scaling efficiently with revenue fluctuations, potentially due to fixed cost burdens in the distribution network. Analysts should evaluate whether management can successfully rationalize the cost base to protect profitability if top-line weakness persists.
As evidenced by the dramatic 80% decline in EPS during 2025Q4, the company's bottom-line performance appears highly sensitive to non-operating items and regional demand shocks, which complicates the assessment of underlying earnings quality for long-term institutional investors looking for stable, predictable growth.
The sharp divergence between revenue trends and net income volatility suggests that the company's earnings are susceptible to significant accounting adjustments or regional inventory write-downs. This volatility may indicate that the current earnings baseline is less stable than the historical average, posing a risk to dividend sustainability.
Quick answers to the most common questions about buying DEO stock.
For fiscal year 2025, Diageo plc (DEO) reported total revenue of $20.25B. This represents a 50.6% increase compared to $13.44B in 1997.
Diageo plc (DEO) is profitable, generating $2.35B in net income for the fiscal year ending 2025 with a net profit margin of 11.6%.
Diageo plc (DEO) reported an operating income of $4.33B, resulting in an operating profit margin of 21.4%. This margin reflects the operational efficiency of the business before interest and taxes.
Diageo plc (DEO) generated $12.17B in gross profit for the year, representing a gross profit margin of 60.1%. This demonstrates the company's core pricing power and production efficiency.