Brown-Forman A 2026 Q1 Earnings Net Income Falls 12.8% Despite Full-Year Outlook Reaffirmed

Brown-Forman A reported mixed results for fiscal 2026 Q1, with revenue and EPS below prior-year levels, though the company reaffirmed its full-year guidance and expressed confidence in its long-term value creation strategy.

Revenue
Total revenue for the quarter declined 2.8% year-over-year to $924 million. The Spirits segment remained the largest contributor, generating $787 million, driven primarily by its Whiskey business, which accounted for $659 million. Ready-to-Drink products added $128 million, while the Tequila segment contributed $62 million. Non-branded and bulk sales totaled $14 million, and the rest of the portfolio added $61 million, rounding out the total revenue picture.

Earnings/Net Income
Earnings per share fell 12.2% to $0.36 in 2026 Q1, compared to $0.41 in the prior-year period, while net income decreased 12.8% to $170 million from $195 million. Despite the decline, the company has maintained profitability for more than two decades, a testament to its operational resilience.

Price Action
BF.A shares fell 7.30% in the latest trading day, 4.28% over the past week, and 3.07% month-to-date, reflecting investor caution following the earnings report.

Post Earnings Price Action Review
The strategy of buying BF.A following a revenue miss and holding for 30 days yielded a -53.02% return, sharply underperforming the benchmark’s 79.85%. This resulted in an excess return of -132.86% and a negative CAGR of -14.31%. With a Sharpe ratio of -0.53 and no recorded drawdown, the strategy demonstrated poor risk-adjusted returns and a lack of downside protection.

CEO Commentary
Lawson Whiting, President and CEO, described the performance as “solid” in a “challenging environment,” attributing growth to “superior innovation” and “bold route-to-consumer strategies.” He expressed confidence in the company’s ability to deliver long-term value for shareholders and reaffirmed the full-year outlook.

Guidance
Brown-Forman A maintained its full-year fiscal 2026 guidance, citing continued strategic momentum, new product launches, and route-to-consumer initiatives as key enablers of performance.

Additional News
On the same date, Brown-Forman Corporation (BF.B) held its Q1 2026 earnings call, but access to related content was restricted. No material mergers or acquisitions, C-level changes, or dividend announcements were disclosed in the available data. The company did not issue new buyback or dividend plans during the reporting period.