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Diageo plc DGE

LondonBeer, wine and spiritsFinancials to Sep 30, 2026 · Updated Nov 11, 2026

On Stock Analysis · affiliate link
DGE financials
Moat score
52
ROIC
7.8%
P/E
32.6
Incl. −$752M one-offs
EV/EBIT
24.3
Incl. −$752M one-offs
FCF yield
5.6%
Dividend yield
3.3%
Market cap
$56.7B

Moat ranks

Score rankTied #352 of 396
Durabilitymedium
Market structureOligopoly
Pricing powerweak

Balance sheet

6/30/26
$BJun '25Jun '26
Cash2.21.7
Securities0.00.0
Debt23.821.8
Net cash-21.5-20.1
Equity11.110.9
Leverage
Debt / EBITDA
5.58×
Debt / equity
2.00×
Leases (6/30/26)
$685M
Capital
Diluted shares
2,231M
Book value / share
$4.87
Price / book
5.2×
Net cash / share
−$9.01
Market cap
$56.7B
Enterprise value
$76.8B

Per-share record

Fiscal years and TTM
Scale
$0$2.5$5$7.5$10'22'23'24'258.80'26
Revenue per shareCash flow per share

Key indicators

Latest: H2 '26
IndicatorLatestVs year agoLast 8 halves
Revenue growth-1.7%-2.1 pts
Operating margin0.4%-12.2 pts
FCF margin18.3%+7.6 pts
Capex / revenue6.4%-4.0 pts
Net sales in markets holding or gaining share35.0%-30.0 pts
US Spirits net sales growth-12%-13 pts
Guinness net sales growth+12%-1 pts
North America price/mix growth-2%-4 pts
Europe price/mix growth+3%-1 pts

Margins and growth from reported quarters; company KPIs as reported in results releases.

About DGE

Diageo sells spirits, Guinness and ready-to-drink beverages. Its current reporting separates North America, EMEA, APAC excluding India, LAC and India.

Revenue mix
North America 36.5%Europe, Middle East and Africa 32.8%Asia Pacific excluding India 11.3%Latin America and Caribbean 10.6%India 7.2%
  • Brand Trust

    Don Julio, Crown Royal, Johnnie Walker, Buchanan's, Smirnoff and Guinness remain recognizable brands, but fiscal 2026 losses in tequila and Canadian whisky show that recognition did not protect share or pricing across the largest regional profit pool.

  • Brand Trust

    Guinness and premium spirits support consumer recognition across the combined region.

  • Brand Trust

    Johnnie Walker and other international brands support recognition, but Chinese white-spirits weakness and travel-retail volatility limit protection.

  • Brand Trust

    Johnnie Walker, Old Parr, Buchanan's and Don Julio provide strong recognition in Scotch, whisky and tequila occasions across LAC, though demand is macro-sensitive.

Timeline
  1. Sep 23, 2026

    Diageo appointed Joanne Wilson as the next CFO for 2027; Nik Jhangiani remains in role until the handover during the turnaround. Source: https://www.sec.gov/Archives/edgar/data/835403/000165495426008525/a8730v.htm

  2. Sep 10, 2026

    Kenya’s competition authority cleared Asahi’s EABL acquisition with conditions, reducing one approval risk while legal completion risk remains. Source: https://www.businessdailyafrica.com/bd/corporate/companies/asahi-sees-eabl-growing-with-premium-beer-brands-5614998

  3. Aug 31, 2026

    Kenya’s High Court preserved the EABL transaction status until the Capital Markets Tribunal appeal and competition review are determined, allowing the reviews to continue while delaying transfer. Source: https://sheriahub.com/cases/ke/caselaw/irungu-v-diageo-kenya-ltd-7-others-2026-kehc-13192-klr

  4. Aug 6, 2026

    Diageo announced a new operating framework and $1bn annual savings objective, funding reinvestment while restructuring costs weigh on reported profit. Source: https://www.sec.gov/Archives/edgar/data/835403/000162828026057529/deo-20260630.htm

  5. Aug 6, 2026

    Diageo announced that FY2027 reporting will combine Europe, Middle East and Africa into EMEA and report India separately; investors will need recast regional results to compare performance. Source: https://www.sec.gov/Archives/edgar/data/835403/000162828026057529/deo-20260630.htm

Ownership

To 10/7/26
CEO
Sir Dave Lewis
Since 2026
Professional CEOSingle share class
Insider trades0
Planned sales0

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Financial record

Fiscal year20222023202420252026TrendChange 2022–26
Per share ($)
Revenue8.829.059.059.098.80-0.1%/yr
Cash flow2.241.601.831.931.97-3.2%/yr
Earnings1.841.961.731.060.78-19.4%/yr
Free cash flow1.620.981.161.211.43-3.0%/yr
Capex0.630.620.670.720.54-3.8%/yr
Dividends0.990.911.001.030.83-4.4%/yr
Book value4.064.364.484.984.87+4.7%/yr
Diluted shares (M)2,3252,2712,2392,2282,231-1.0%/yr
Totals ($B)
Revenue20.520.620.320.219.6-1.1%/yr
Operating income5.95.56.04.33.2-14.5%/yr
Net income4.34.43.92.41.7-20.2%/yr
Free cash flow3.82.22.62.73.2-4.0%/yr
Buybacks3.01.71.00.00.0–
Dividends2.32.12.22.31.8-5.3%/yr
Net cash-16.6-19.0-20.3-21.5-20.1−$3.5B
Margins & returns (%)
Gross margin61.459.760.260.159.5-1.9 pts
Operating margin28.727.029.621.416.1-12.7 pts
Net margin20.921.619.111.68.8-12.0 pts
FCF margin18.310.812.813.316.3-2.0 pts
ROIC17.414.815.210.27.8-9.6 pts
Return on equity45.444.938.621.216.0-29.4 pts
R&D % of revenue0.30.30.30.40.4+0.1 pts
Stock pay % of revenue0.40.30.20.30.2-0.2 pts
Capex % of revenue7.16.97.48.06.1-1.0 pts

Change uses 2022 and 2026 only: compound annual growth for amounts, points for margins and returns, and the change in amount for net cash. A dash means no 2022 base. Trend shows the fiscal years.

Per-share values use diluted weighted shares.ROIC = operating income × (1 − 23.0% tax rate, the company's own over three fiscal years excluding one-offs) ÷ (equity + debt − cash and current securities). Returns show a dash when their base is negative or under 10% of revenue. Free cash flow = operating cash flow − capex. Debt is all borrowings; net cash counts long-term securities and excludes leases. No trailing-twelve-month column: no complete four quarters end after the last fiscal year.

Moat

Moat scorecard

Moat score52
Strength
Confidence
Structure
Oligopoly
Durability
medium
Trajectory
narrowing
Pricing power
weak
Segments
  • North America36.5%
    1 claim
  • Europe, Middle East and Africa32.8%
    1 claim
  • Asia Pacific excluding India11.3%
    1 claim
  • Latin America and Caribbean10.6%
    1 claim
  • India7.2%
    1 claim

Moat claims

Applies to
North America
Confidence
Durability
medium
Trajectory
narrowingas of Jun 30, 2026
Why it holds

Don Julio, Crown Royal, Johnnie Walker, Buchanan's, Smirnoff and Guinness remain recognizable brands, but fiscal 2026 losses in tequila and Canadian whisky show that recognition did not protect share or pricing across the largest regional profit pool.

Why narrowing

US Spirits sales fell 11.5% and both Don Julio and Casamigos lost share; recognition is no longer protecting price or demand in the largest profit pool.

Indicators
  • Net sales in markets holding or gaining share35.0%-30.0 pts
  • US Spirits net sales growth-12%
  • Guinness net sales growth+12%
  • North America price/mix growth-2%
  • Guinness volume growth+7%
  • Don Julio US depletions growth-10%
  • Casamigos US depletions growth-23%
  • Group volume growth+1%
  • Group organic net sales growth+1%
Risks
  • US consumers trading down can pressure super-premium tequila, vodka and whisky price/mix.
  • Tariffs on Mexican tequila and Canadian whisky can weaken margins or require price increases.
  • Premium spirits shelf space is contested by Pernod Ricard, Brown-Forman, Sazerac, Bacardi, Campari and Constellation.

Profile change log

  1. Nov 11, 2026 · analyst revision

    Rebuilt five regional profiles using the published recast: EMEA combines Europe and Africa, India is separate and all Global Travel moves to APAC. Weights use restated FY2026 sales. Brand strength of 3 for both EMEA and India is a conservative analyst assessment of each current region; regrouping does not itself show economic moat change.

  2. Oct 7, 2026 · business change

    Diageo announced that FY2027 reporting will combine Europe, Middle East and Africa into EMEA and report India separately; investors will need recast regional results to compare performance. Source: https://www.sec.gov/Archives/edgar/data/835403/000162828026057529/deo-20260630.htm

  3. Oct 7, 2026 · business change

    Diageo changed its dividend policy to a 30–50% payout with a 50-cent annual floor, freeing cash for debt reduction and investment. Source: https://www.sec.gov/Archives/edgar/data/835403/000162828026057529/deo-20260630.htm

  4. Oct 7, 2026 · analyst revision

    Corrected Guinness full-year growth from 10.9% to the reported 12%; the earlier value covers the first half. Corrected regional sales notes to the group denominator, clarified the EABL court order’s ending conditions, and corrected Littleconnell’s expansion description. Brand strengths and trajectory directions are unchanged.

  5. Oct 7, 2026 · business change

    Diageo appointed Joanne Wilson as the next CFO for 2027; Nik Jhangiani remains in role until the handover during the turnaround. Source: https://www.sec.gov/Archives/edgar/data/835403/000165495426008525/a8730v.htm

  6. Oct 7, 2026 · business change

    Kenya’s competition authority cleared Asahi’s EABL acquisition with conditions, reducing one approval risk while legal completion risk remains. Source: https://www.businessdailyafrica.com/bd/corporate/companies/asahi-sees-eabl-growing-with-premium-beer-brands-5614998

  7. Oct 7, 2026 · business change

    Kenya’s High Court preserved the EABL transaction status until the Capital Markets Tribunal appeal and competition review are determined, allowing the reviews to continue while delaying transfer. Source: https://sheriahub.com/cases/ke/caselaw/irungu-v-diageo-kenya-ltd-7-others-2026-kehc-13192-klr

  8. Oct 7, 2026 · business change

    Diageo announced a new operating framework and $1bn annual savings objective, funding reinvestment while restructuring costs weigh on reported profit. Source: https://www.sec.gov/Archives/edgar/data/835403/000162828026057529/deo-20260630.htm

  9. Oct 7, 2026 · business change

    Diageo opened Littleconnell Brewery and announced a further €400m investment to expand brewing and roasting capacity at the site; additional capacity is expected by the end of 2028. Source: https://www.sec.gov/Archives/edgar/data/835403/000162828026057529/deo-20260630.htm

  10. Oct 7, 2026 · business change

    United Spirits agreed to sell Royal Challengers Bengaluru, freeing capital for the beverage business when the transaction completes. Source: https://www.sec.gov/Archives/edgar/data/835403/000162828026057529/deo-20260630.htm

  11. Oct 7, 2026 · business change

    Diageo sold Sheridan’s to Casa Redondo for $48m, realizing a $46m pretax gain and narrowing its liqueur portfolio. Source: https://www.sec.gov/Archives/edgar/data/835403/000162828026057529/deo-20260630.htm

  12. Oct 7, 2026 · business change

    Sir Dave Lewis became chief executive, taking charge of the turnaround after the interim leadership period. Source: https://www.sec.gov/Archives/edgar/data/835403/000162828026057529/deo-20260630.htm

  13. Oct 7, 2026 · analyst revision

    Verified five regional brand claims against FY2026 filings and added their trajectories, management, debate and end-market links. Changed regional revenue shares from regional-only sales to total group sales; removed profit shares that excluded corporate costs. Moat strengths and existing timestamps are preserved.

  14. Oct 7, 2026 · business change

    Diageo agreed to sell its controlling EABL and Kenyan spirits holdings to Asahi, targeting $2.3bn net proceeds for debt reduction while retaining brand licences. Source: https://www.sec.gov/Archives/edgar/data/835403/000162828026057529/deo-20260630.htm

  15. Oct 7, 2026 · business change

    Diageo completed the Guinness Ghana sale to Castel, shifting the brewing operation to a licence model; the prospective sale had caused a $114m fiscal 2025 loss. Source: https://www.sec.gov/Archives/edgar/data/835403/000162828026057529/deo-20260630.htm

  16. Oct 7, 2026 · business change

    Diageo sold its controlling stake in Guinness Nigeria to Tolaram, moving production to a licence model and recording a $125m fiscal 2025 disposal loss. Source: https://www.sec.gov/Archives/edgar/data/835403/000162828026057529/deo-20260630.htm

  17. Oct 7, 2026 · business change

    Diageo sold Windsor Global, exiting direct ownership of the Korean whisky business; the fiscal 2024 disposal loss was $58m. Source: https://www.sec.gov/Archives/edgar/data/835403/000162828026057529/deo-20260630.htm

Industry & peers

Peer map

0%10%20%30%40%50%60708090100Moat scoreIndustry medianDGEBF.B

Hover a point for its values; click a peer to compare. Dashed lines: industry medians.

Branded spirits, beer and ready-to-drink alcohol

As of Oct 7, 2026
CompetitiveMedium cyclicality

Branded distilled spirits, beer and alcoholic ready-to-drink products sold worldwide through licensed retail, hospitality and travel-retail channels. Excludes wine and non-branded bulk alcohol; retail spending and producer sales are different measures of this market.

  1. Diageo
  2. Pernod Ricard
  3. Suntory Global Spirits
  4. Bacardi
  5. Campari
  6. Brown-Forman
  7. AB InBev
  8. Asahi
  9. Heineken
  10. Constellation Brands
  11. Carlsberg
  12. Molson Coors
2026 leaders, no comparable shares · Diageo FY2026 annual report, named global spirits and beer competitors; no common-basis shares
StocksMoatGross m.Op. m.
DGE5259.5%16.1%
Industry median117658.9%24.2%
Sector median857455.3%17.0%
All stocks median3987653.1%20.0%

Moat medians cover every stock. Margin medians count only stocks with collected numbers and need at least three.

Drivers & risks

Demand drivers
  • Consumer disposable income and employment determine drinking frequency and willingness to pay for premium brands; cheaper formats can grow while supplier value falls.
  • Moderation and convenience shift demand toward no-alcohol extensions and spirit-based RTDs. Brands with suitable formats can grow even when traditional spirits supplier sales fall.
  • On-trade traffic, tourism and travel retail affect premium serves; availability and brand visibility influence which supplier captures the spending.
  • Grain, agave, packaging, energy and transport costs affect profit; long spirit-aging cycles delay supply adjustments and tie up cash.
  • Currency and interest rates influence imported-product affordability, USD reporting and financing of inventory; a weaker local currency can require pricing that consumers resist.
Risks
  • Excise increases, advertising restrictions and government drinking rules can reduce consumption occasions or make imports less competitive; India and China require separate local decisions.
  • Tariffs and trade disputes can raise imported-spirit costs or remove products from retail shelves. The US trade association reports American spirits losing Canadian shelf access in 2025; brand recognition cannot overcome a sales restriction.
  • Premium tequila and whisky face promotions, retailer bargaining and local substitutes, so strong brand awareness can coexist with share losses.
  • Persistent inventory excess and distributor destocking can magnify weak consumption and make shipment growth a poor measure of brand health.
  • Water stress, energy disruption and shipping delays can limit production or raise costs; beer freshness and aging-stock commitments make flexibility uneven.

Bulls & bears

Key question · as of Nov 11, 2026

Can Diageo stop losing US spirits share while preserving cash generation, rather than relying on cost cuts and asset sales?

Arguments

3 forFaded: weakening or settled5 against

What to watch

  1. 1US Spirits depletions and Don Julio/Casamigos category share
  2. 2Net sales in measured markets holding or gaining share
  3. 3Organic price/mix, gross profit and cash generation after restructuring

Next check: FY2027 H1 results in February 2027, exact day unconfirmed: track North America share, EMEA and India reporting comparisons, EABL approvals and cash costs of the operating reset.

Sources: company filings and dated sources collected for Find My Moat; market cap as of Nov 10, 2026. Not investment advice.

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Free to reuse, commercially too, with a credit link. See the data license.

Moat Score 52/100 by <a href="https://www.findmymoat.com/stocks/XLON:DGE">Find My Moat</a> (as of September 2026)

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