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Oct 31, 2025
Brown-Forman Q2 2026 Earnings Report
Brown-Forman reported a decline in earnings and revenue for Q2 2026.
Key Takeaways
Brown-Forman posted weaker quarterly results, with lower net income and revenue driven by the end of the Korbel relationship and a challenging U.S. market. However, the company reaffirmed its full-year guidance and maintained solid gross margin performance.
Revenue for Q2-26 fell to $1.036 billion from $1.095 billion.
EPS dropped to $0.47 from $0.55 in the prior year.
Net income decreased to $224 million from $258 million.
Gross margin slightly improved to 59.3% despite revenue decline.
Revenue by Geographic Location
Forward Guidance
Brown-Forman reaffirmed its full-year outlook despite a volatile macroeconomic backdrop.
Positive Outlook
- Fiscal 2026 guidance reaffirmed.
- Gross margin expansion supported by acquisitions.
- Free cash flow significantly increased to $236 million.
- Dividend increased for the 42nd consecutive year.
- Travel Retail and Emerging Markets showed strong growth.
Challenges Ahead
- End of Korbel relationship continues to impact U.S. sales.
- Developed International markets remain under pressure.
- Non-branded and bulk revenue declined sharply.
- Tequila portfolio saw volume and revenue contraction.
- Challenging operating environment due to macroeconomic volatility.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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