Brown-Forman B 2026 Q2 Earnings Net Income Falls 13.2%

Brown-Forman B (BF.B) reported mixed Q2 2026 results, with revenue declining 5.4% year-over-year to $1.04 billion and EPS falling 14.5% to $0.47. The company reaffirmed full-year guidance despite challenges in key markets.

Revenue

Brown-Forman B’s total revenue fell to $1.04 billion in Q2 2026, a 5.4% drop from $1.09 billion in the prior-year period. Spirits remained the dominant segment, generating $838 million, while whiskey contributed $771 million. Ready-to-Drink (RTD) and tequila segments reported $138 million and $67 million, respectively. Non-branded and bulk sales totaled $8 million, and other portfolio segments added $52 million. The decline was driven by weaker performance in developed markets and the U.S., partially offset by growth in emerging markets and Travel Retail.

Earnings/Net Income

Net income for Q2 2026 decreased to $224 million, a 13.2% decline from $258 million in Q2 2025. Earnings per share (EPS) fell 14.5% to $0.47, missing the Zacks Consensus Estimate of $0.48. Despite the drop, the company maintained profitability for over two decades, reflecting operational resilience.

Post-Earnings Price Action Review

A strategy of buying BF.B when earnings beat expectations and selling after 30 days yielded a -25.11% return, underperforming the benchmark’s 27.97%. The strategy’s Sharpe ratio of -1.60 highlighted significant risk aversion, while a 0% maximum drawdown indicated minimal losses during downturns.

CEO Commentary

CEO Lawson Whiting emphasized progress in emerging markets and the success of the “Jack Daniel’s Tennessee Blackberry” launch. He noted challenges such as a 60% drop in Canadian organic sales and used barrel sales declines but reaffirmed confidence in achieving full-year guidance through innovation and operational shifts.

Guidance

Brown-Forman B reiterated full-year 2026 guidance: low-single-digit organic sales decline, gross margin expansion, and diluted EPS of $0.83 (midpoint of $0.75–$0.95). The company plans $110–120 million in CAPEX and a 2% dividend increase.

Additional News

Brown-Forman B announced a $400 million share repurchase program and a 42nd consecutive dividend increase, underscoring shareholder returns. Capital expenditures for 2026 were reduced to $110–120 million from $125–135 million, reflecting disciplined capital allocation. The company also highlighted progress in route-to-consumer transitions and portfolio innovation to address market headwinds.