Diageo Revises FY26 Forecast Due to Weak Sales in U.S. and China
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 06 2025
0mins
Should l Buy DEO?
Source: SeekingAlpha
Diageo's Sales Decline: Diageo plc's shares hit a 14-year low due to anticipated lower sales for FY26, primarily influenced by weak performance in China and the U.S. market.
CEO's Focus on Efficiency: Interim CEO Nik Jhangiani emphasized the company's commitment to improving performance through efficiency, investment prioritization, and adaptability to changing consumer trends.
Sales Performance Overview: For the fiscal first quarter, Diageo reported a 2.2% decline in sales to $4.875 billion, with organic sales remaining flat despite a 2.9% increase in volume.
Leadership Uncertainty: The company has not provided updates on the search for a permanent CEO, following the ousting of Debra Crew, with Jhangiani currently serving in the interim role.
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Analyst Views on DEO
Wall Street analysts forecast DEO stock price to fall
2 Analyst Rating
1 Buy
1 Hold
0 Sell
Moderate Buy
Current: 100.050
Low
25.32
Averages
76.16
High
127.00
Current: 100.050
Low
25.32
Averages
76.16
High
127.00
About DEO
Diageo plc is a United Kingdom-based international manufacturer and distributor of premium drinks. The Company offers beverage alcohol with a collection of brands across spirits and beer categories. Its segments include North America, Europe, Asia Pacific, Latin America and Caribbean, Africa, and Corporate and other. The SC&P segment manufactures products and includes production sites in the United Kingdom, Ireland, Italy, Guatemala and Mexico, as well as comprises the global procurement function. Its principal products include scotch whisky, whisk(e)y, vodka, tequila, gin, rum, liqueurs, beer, wine, and non-alcoholic spirits. Its collection of brands includes Johnnie Walker, J&B and Buchanan's whiskies, Smirnoff, Ciroc and Ketel One vodkas, Captain Morgan, Don Julio, Guinness, and Tanqueray, among others. It offers Ritual Zero Proof Non-Alcoholic Spirits (Ritual). It owns manufacturing production facilities across the globe, including distilleries, breweries, and packaging plants.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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