Brown-Forman Company BF.B has reported combined second-quarter fiscal 2026 outcomes, whereby the highest line beat the Zacks Consensus Estimate, whereas the underside line missed the identical. Each gross sales and earnings declined yr over yr. The fiscal second-quarter outcomes spotlight the decisive actions the corporate has taken to strengthen its enterprise amid a difficult surroundings. With superior innovation and daring route-to-consumer methods, it has constructed resilience to navigate persistent headwinds.
Within the fiscal second quarter, earnings per share (EPS) of 47 cents fell 14% yr over yr and lagged the Zacks Consensus Estimate of 48 cents.
Web gross sales of $1.036 billion declined 5% on a reported foundation however beat the Zacks Consensus Estimate of $1.027 billion. On an natural foundation, web gross sales dipped 2% from the prior-year interval.
This Zacks Rank #3 (Maintain) firm’s shares have risen 4.1% up to now three months in opposition to the trade’s 2.4% drop.
Brown-Forman’s Margins & Bills
Within the fiscal second quarter, BF.B’s gross revenue of $615 million declined 5% yr over yr on a reported and 4% on an natural foundation. Nonetheless, the gross margin expanded 20 foundation factors (bps) to 59.3%, aided by the impact of acquisitions and divestitures. This acquire was partly offset by larger prices and unfavorable value/combine.
Promoting, common and administrative (SG&A) bills of $187 million have been nearly flat yr over yr, primarily pushed by diminished compensation and benefit-related bills.
Brown-Forman Company Value, Consensus and EPS Shock
Brown-Forman Company price-consensus-eps-surprise-chart | Brown-Forman Company Quote
Working revenue decreased 10% yr over yr to $305 million on a reported foundation and fell 9% on an natural foundation. The working margin of 29.4% contracted 170 bps from 31.1% reported within the year-ago quarter.
Understanding Brown-Forman’s Market Efficiency
Within the first-half fiscal 2026, web gross sales in the US decreased 9% yr over yr on a reported foundation and have been flat on an natural foundation, reflecting the top of the Korbel relationship and the absence of the Sonoma-Cutrer prior-year TSA, and decrease volumes of Jack Daniel’s Tennessee Whiskey, Herradura and Jack Daniel’s Tennessee Honey. Such declines have been partly offset by the launch of Jack Daniel’s Tennessee Blackberry and elevated web gross sales throughout the portfolio owing to modifications to its distributor relationship phrases.
In a difficult financial panorama, web gross sales within the Developed Worldwide markets dipped 4% on a reported foundation and 6% on an natural foundation, regardless of sequential enchancment. The lower was led by the absence of American-made beverage alcohol from retail cabinets within the majority of the Canadian provinces and diminished volumes of Jack Daniel’s Tennessee Whiskey in Germany and the UK. The decline was partly offset by the constructive impact of international trade, new company manufacturers in Japan and good points from the transition to owned distribution in Italy.
Web gross sales in Rising markets elevated 10% on a reported foundation and 12% on an natural foundation, backed by strong double-digit progress of New Combine, elevated volumes throughout the Jack Daniel’s household of manufacturers in Brazil and Türkiye, and an anticipated web improve in distributor inventories.
The Journey Retail channel’s web gross sales jumped 7% on a reported foundation and 6% on an natural foundation, owing to larger volumes of Jack Daniel’s Tennessee Whiskey, the phasing of ordering patterns and the good points from international trade.
A Peek at BF.B’s Model Efficiency
Within the fiscal half, web gross sales for Whiskey merchandise have been flat yr over yr, each on a reported and natural foundation. The launch of Jack Daniel’s Tennessee Blackberry and elevated gross sales of Woodford Reserve, due to distributor inventories and transitions in the US, have been offset by weak volumes of Jack Daniel’s Tennessee Whiskey and Jack Daniel’s Tennessee Honey.
Web gross sales for the Tequila portfolio dipped 3% each on a reported and natural foundation. Herradura’s web gross sales dipped 11% every on a reported and natural foundation, led by comfortable volumes in the US, because the tequila class has been aggressive. el Jimador’s web gross sales inched up 1% and a pair of% on an natural foundation, backed by elevated volumes in Colombia and an anticipated web improve in distributor inventories in the US.
Web gross sales for the Prepared-to-Drink (RTD) portfolio jumped 5% each on a reported and natural foundation. Web gross sales of New Combine surged 28% on a reported foundation and 30% on an natural foundation, bolstered by progress in Mexico with market share good points in an accelerating class. Jack Daniel’s RTD/RTP portfolio dipped 4% every on a reported and natural foundation, primarily owing to the absence of American-made beverage alcohol from retail cabinets in most provinces in Canada.
Remainder of Portfolio’s web gross sales plunged 35% on a reported foundation however rose 22% on an natural foundation, due to the conclusion of the Korbel relationship and the absence of the Sonoma-Cutrer and Finlandia prior-year TSAs. The lower was partly offset by the distribution of recent company manufacturers in Japan and Mexico, together with the broad-based progress of Gin Mare.
Web gross sales for non-branded and bulk declined 61%, as a consequence of comfortable used barrel gross sales.
BF.B’s Monetary Well being Snapshot
The corporate ended second-quarter fiscal 2026 with money and money equivalents of $319 million and long-term debt of $2.1 billion. Its whole shareholders’ fairness was $4.1 billion. As of Oct. 31, 2025, BF.B had $292 million in money from working actions.
On Nov.19, 2025, the corporate’s board permitted a increase of two% to the quarterly money dividend to $0.2310 per share on its Class A and Class B Frequent Inventory. The brand new dividend is payable on Jan. 2, 2026, to stockholders of report as of Dec. 5, 2025. Brown-Forman paid common quarterly money dividends for 82 straight years whereas climbing the common dividend for 42 consecutive years.
The board has additionally approved repurchasing of $400 million (unique of brokerage charges and excise taxes) of excellent shares of Class A and Class B widespread inventory from Oct. 1, 2025, by way of Oct. 1, 2026, topic to market and different situations. As of Oct. 31, 2025, $301 million was accessible beneath this system.
What’s Forward For BF.B in FY26?
Administration continues to anticipate the working backdrop to stay difficult in fiscal 2026, with low visibility on macroeconomic and geopolitical volatility, because it witnessed headwinds from shopper volatility and comfortable non-branded gross sales of used barrels. Nonetheless, the corporate stays dedicated to constructing its enterprise in the long run, mitigating the prevailing surroundings at tempo with strategic actions in fiscal 2026. The significant evolution of its U.S. distribution, the restructuring effort and product innovation will energy progress.
Administration reiterates expectations for fiscal 2026. For fiscal 2026, Brown-Forman nonetheless tasks an natural web gross sales lower within the low-single digit vary. Natural working revenue is more likely to decline within the low single-digit vary. The efficient tax fee continues to be anticipated to be 21-23% for the present fiscal yr. It has revised capital expenditure steering to $110-$120 million, down from $125-$135 million anticipated earlier.
Three Shares Wanting Good
United Pure Meals UNFI is a key distributor of pure, natural and specialty meals and non-food merchandise. It at the moment sports activities a Zacks Rank #1 (Robust Purchase). You’ll be able to see the entire listing of at the moment’s Zacks #1 Rank shares right here.
The Zacks Consensus Estimate for United Pure Meals’ present financial-year earnings signifies progress of 187.3%, from the prior-year degree. UNFI delivered a trailing four-quarter earnings shock of 52.1%, on common.
Celsius Holdings, Inc. CELH, which makes a speciality of dietary useful meals, drinks and dietary dietary supplements, starches and vitamin components, at the moment sports activities a Zacks Rank of two (Purchase).
The Zacks Consensus Estimate for Celsius’ present financial-year earnings is predicted to rise 80% from the corresponding year-ago reported determine. CELH delivered a trailing four-quarter earnings shock of 42.9%, on common.
Publish Holdings POST, which is a consumer-packaged items holding firm, at the moment carries a Zacks Rank #2. POST delivered a trailing four-quarter earnings shock of 16.5%, on common.
The Zacks Consensus Estimate for Publish Holdings’ present financial-year earnings signifies progress of 1.8% from the year-ago quantity.
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Brown-Forman Company (BF.B) : Free Inventory Evaluation Report
United Pure Meals, Inc. (UNFI) : Free Inventory Evaluation Report
Publish Holdings, Inc. (POST) : Free Inventory Evaluation Report
Celsius Holdings Inc. (CELH) : Free Inventory Evaluation Report
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