Diageo Fiscal 26 Outlook: Flat Net Sales, Positive Operating Leverage, and $3 Billion Free Cash Flow

Diageo has provided guidance for Fiscal 26, expecting organic net sales growth to be flat to slightly down due to a weaker US consumer environment and Chinese white spirits. Organic operating profit growth is expected to be low to mid-single-digit, with positive operating leverage supported by cost savings from the Accelerate programme. Taxation is expected to be around 25%, with an effective interest rate of 4.0%. Capital expenditure is expected to be at the lower end of the $1.2-1.3bn range, and free cash flow is expected to be around $3bn.