Diageo plc (DEO) Reports Fiscal 2026 First-Half Results

Diageo plc (NYSE:DEO) is among the 12 Best Alcohol Stocks to Buy Right Now.

On February 25, 2026, Diageo plc (NYSE:DEO) reported fiscal 2026 first-half net sales of $10.46 billion, a 4.0% decrease from F25 H1, with organic net sales dropping 2.8%. Europe, Latin America and the Caribbean, and Africa saw growth, countering weaker performance in North America and ongoing losses in Chinese white spirits in the Asia Pacific. The company reported an operating profit of $3.12 billion, a 1.2% decrease. Tariffs and an unfavorable mix reduced earnings, but disposals and marketing effectiveness boosted margins. Basic EPS increased 3.0% to 89.7 cents, while EPS before exceptional items decreased 2.5% to 95.3 cents.

Diageo plc (NYSE:DEO) earned $2.12 billion in operating cash flow and $1.53 billion in free cash flow, both dropping year-on-year, and concluded the period with a net debt of $21.7 billion. The corporation decided to sell its holdings in East African Breweries and the Kenyan spirits division to Asahi for $2.3 billion in net proceeds to reduce leverage.

Diageo plc (NYSE:DEO) is involved in the manufacturing and distribution of alcoholic beverages. The company's brands include Johnnie Walker, Crown Royal, J&B, and Buchanan's whiskies, Smirnoff, Ciroc, and Ketel One vodkas, Captain Morgan, Baileys, Don Julio, Casamigos, Tanqueray, and Guinness.

While we acknowledge the potential of DEO as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 15 Best Electric Utility Stocks to Invest In Now and 40 Most Popular Stocks Among Hedge Funds Heading Into 2026.

Disclosure: None. Follow Insider Monkey on Google News.