Jack Daniel’s maker Brown-Forman's Q1 revenue falls slightly more than expected

Brown-Forman

02/09/2026 13:10

Overview
U.S. spirits maker's fiscal Q1 revenue fell 1%, a slight miss versus analyst expectations
Diluted EPS for fiscal Q1 rose 6% to $0.38
Company cites end of Korbel relationship and tequila declines as key revenue drivers

Outlook
Company expects fiscal 2027 organic net sales to be approximately flat
Company sees fiscal 2027 organic operating income declining 3% to 5%
Brown-Forman anticipates continued macroeconomic and geopolitical pressures to weigh on developed markets

Result Drivers
KORBEL RELATIONSHIP END - Co said net sales declines were primarily driven by the end of the Korbel relationship
TEQUILA WEAKNESS - Co said tequila portfolio net sales fell 12% due to lower volumes in the U.S. and lower net pricing in Mexico
READY-TO-DRINK GROWTH - Co said growth in Ready-to-Drink portfolio, led by New Mix, helped offset declines elsewhere

Company press release: ID:nBw13TsYDa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Slight Miss*
$911 mln
$914.86 mln (11 Analysts)
Q1 EPS
 
$0.38
 
Q1 Net Income
 
$176 mln
 
Q1 Operating Income
 
$252 mln
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 13 "hold" and 4 "sell" or "strong sell"
The average consensus recommendation for the distillers & wineries peer group is "hold"
Wall Street's median 12-month price target for Brown-Forman Corporation is $28.00, about 6.2% above its September 1 closing price of $26.36
The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 15 three months ago

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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)