Diageo plc (GB:DGE)
LSE:DGE
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Diageo
(LSE:DGE)
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Rating:66Neutral
Price Target:
1,501.00 p
â–¼(-1.26% Downside)
Action:ReiteratedDate:02/26/26
The score is driven primarily by solid underlying financial performance (growth and operating margins) tempered by margin pressure, high leverage, and weaker free cash flow stability. Technicals are a meaningful drag due to the stock trading below major moving averages, while valuation is moderately supportive, helped by the high dividend yield.
Positive Factors
Strong brand portfolio & pricing power
Owning a broad mix of international and local spirits brands supports durable demand, premiumization and pricing flexibility. This structural brand strength underpins margin resilience and market access across channels, aiding revenue stability over the medium term.
Negative Factors
High leverage on the balance sheet
Elevated debt levels reduce financial flexibility and increase interest burden sensitivity to rate moves. Over the medium term this constrains capital allocation, heightens refinancing risk, and can limit strategic investments or dividend resilience during downturns.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong brand portfolio & pricing power
Owning a broad mix of international and local spirits brands supports durable demand, premiumization and pricing flexibility. This structural brand strength underpins margin resilience and market access across channels, aiding revenue stability over the medium term.
Read all positive factors
Diageo (DGE) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£32.71B
Dividend Yield5%
Average Volume (3M)6.06M
Price to Earnings (P/E)4.4
Beta (1Y)0.70
Revenue Growth-2.83%
EPS Growth-40.42%
CountryUK
Employees30,092
SectorConsumer Defensive
Sector Strength42
IndustryBeverages - Wineries & Distilleries
Share Statistics
EPS (TTM)0.70
Shares Outstanding2,226,557,600
10 Day Avg. Volume6,793,618
30 Day Avg. Volume6,059,212
Financial Highlights & Ratios
PEG Ratio-0.45
Price to Book (P/B)3.66
Price to Sales (P/S)2.01
P/FCF Ratio15.13
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£1,905.02Price Target Upside25.31% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering16
EPS Forecast (FY)1.6
Revenue Forecast (FY)£19.55B
Diageo Business Overview & Revenue Model
Company Description
Diageo plc, together with its subsidiaries, produces, markets, and sells alcoholic beverages. The company offers scotch, whisky, gin, vodka, rum, ready to drink products, raki, liqueur, wine, tequila, Canadian whisky, American whiskey, cachaca, an...
How the Company Makes Money
Diageo makes money primarily by selling alcoholic beverages—mainly spirits and, to a lesser extent, beer—under a portfolio of owned brands. Revenue is generated when Diageo sells finished products to customers such as retailers, wholesalers, distr...
Diageo Earnings Call Summary
Earnings Call Date:Feb 04, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Aug 11, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted continued growth in organic net sales and market share gains, particularly in the Tequila and Guinness segments. However, challenges remain with declining Scotch sales, a drop in organic operating profit, and significant uncertainty due to newly imposed tariffs. The decline in EPS and increased leverage ratio further contribute to a cautious outlook.Positive Updates
Return to Organic Net Sales Growth
Despite challenging macro environments, the company achieved a 1% growth in organic net sales, with growth in four out of five regions, including North America.
Negative Updates
Scotch Segment Decline
Scotch organic net sales declined by 5%, driven by softer industry performance in North America and Greater China, with down trading within the category.
Read all updates
Q2-2025 Updates
Positive
Negative
Return to Organic Net Sales Growth
Despite challenging macro environments, the company achieved a 1% growth in organic net sales, with growth in four out of five regions, including North America.
Read all positive updates
Company Guidance
In the first half of fiscal year 2025, Diageo reported a 1% growth in organic net sales, with momentum seen in four out of five regions, including North America. The company held or gained market share in 65% of its net sales in measured markets. Despite a challenging macroeconomic environment, Diageo demonstrated resilience, particularly in regions like Europe and Africa, and saw a modest improvement in the Latin America and Caribbean regions. The U.S. market showed a slight return to growth, driven by innovations such as smaller pack sizes and strong performances from brands like Crown Royal and Don Julio. However, the company faced challenges with a 5% decline in Scotch sales and pressures from recent U.S. tariff announcements, which could impact future guidance. The company plans to strengthen its balance sheet, focus on sustainable top-line growth, and improve operating leverage while maintaining a robust investment-grade balance sheet.Diageo Financial Statement Overview
Summary
Income Statement
75
Positive
Balance Sheet
70
Positive
Cash Flow
65
Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 19.93B | 20.25B | 20.27B | 20.55B | 15.45B | 12.73B |
| Gross Profit | 11.90B | 12.17B | 12.20B | 12.27B | 9.48B | 7.70B |
| EBITDA | 5.23B | 6.36B | 7.24B | 8.06B | 4.93B | 4.28B |
| Net Income | 2.43B | 2.35B | 3.87B | 4.45B | 3.94B | 2.66B |
Balance Sheet | ||||||
| Total Assets | 50.29B | 49.32B | 45.47B | 44.88B | 36.52B | 31.95B |
| Cash, Cash Equivalents and Short-Term Investments | 2.69B | 2.65B | 1.13B | 1.81B | 2.54B | 2.87B |
| Total Debt | 24.21B | 24.40B | 21.50B | 20.79B | 16.02B | 14.73B |
| Total Liabilities | 36.59B | 36.14B | 33.40B | 33.17B | 27.00B | 23.52B |
| Stockholders Equity | 11.61B | 11.09B | 10.03B | 9.86B | 7.80B | 6.90B |
Cash Flow | ||||||
| Free Cash Flow | 1.63B | 2.69B | 4.55B | 4.33B | 2.84B | 3.03B |
| Operating Cash Flow | 3.22B | 4.30B | 6.07B | 5.74B | 3.94B | 3.65B |
| Investing Cash Flow | -1.48B | -1.72B | -1.59B | -1.43B | -1.34B | -1.09B |
| Financing Cash Flow | -1.87B | -1.49B | -3.11B | -3.04B | -3.26B | -2.79B |
Diageo Technical Analysis
Neutral
1520.20
Price Trends
1553.85
Negative
1599.08
Negative
1712.46
Negative
Market Momentum
-16.89
Negative
53.65
Neutral
67.31
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:DGE, the sentiment is Neutral. The current price of 1520.2 is above the 20-day moving average (MA) of 1403.92, below the 50-day MA of 1553.85, and below the 200-day MA of 1712.46, indicating a neutral trend. The MACD of -16.89 indicates Negative momentum. The RSI at 53.65 is Neutral, neither overbought nor oversold. The STOCH value of 67.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:DGE.
Diageo Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | £717.55M | 9.21 | 14.27% | 2.74% | 3.97% | 34.09% | |
75 Outperform | £15.78B | 17.33 | 28.56% | 1.96% | 6.00% | 42.42% | |
70 Outperform | £90.92B | 11.87 | 16.33% | 5.67% | -2.24% | ― | |
66 Neutral | £32.71B | 4.45 | 19.40% | 5.00% | -2.83% | -40.42% | |
65 Neutral | £1.52B | 8.87 | 2.17% | 5.27% | 26.84% | -81.73% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
41 Neutral | £20.53M | -1.63 | ― | ― | 0.43% | 15.06% |
* Consumer Defensive Sector Average
GB:DGE
Diageo
1,520.20
-475.85
-23.84%
GB:BAG
AG Barr
663.00
3.62
0.55%
GB:BATS
British American Tobacco
4,142.00
1,165.87
39.17%
GB:CCH
Coca Cola HBC
4,419.00
735.96
19.98%
GB:TATE
Tate & Lyle
357.90
-160.76
-30.99%
GB:ART
Artisanal Spirits Company PLC
29.00
-17.50
-37.63%
Diageo Corporate Events
Business Operations and StrategyM&A Transactions
Diageo’s United Spirits Sells Royal Challengers Bengaluru Stake for INR 166.6 Billion
Positive
Mar 25, 2026
United Spirits Limited, a subsidiary of Diageo, has agreed to sell its 100% stake in Royal Challengers Sports Private Limited, owner and operator of the Royal Challengers Bengaluru franchises, for INR 166.6 billion to a consortium of investors. Th...
Business Operations and StrategyRegulatory Filings and Compliance
Diageo Executives Add Shares Through Incentive Plan Awards
Neutral
Mar 20, 2026
Diageo has disclosed a series of share transactions by three Executive Committee members under its One World Share Incentive Plan. On 17 March 2026, Sally Grimes and Hannah Brooks acquired American Depositary Shares on the New York Stock Exchange,...
Executive/Board Changes
Diageo Grants New Long-Term Incentive Awards to CEO and Executive Committee Member
Positive
Mar 17, 2026
Diageo has granted new long-term incentive awards to Chief Executive Officer Sir Dave Lewis and Executive Committee member Hannah Brooks under its 2023 Long Term Incentive Plan, tying their compensation to share price performance and continued emp...
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Diageo Updates Debt Programme Prospectus to Support Ongoing Market Issuance
Positive
Mar 12, 2026
Diageo plc, together with Diageo Finance plc and Diageo Capital B.V., has published a supplement to its base prospectus for its debt issuance programme, updating documentation first dated 20 August 2025. The supplement, approved by the U.K. Financ...
Business Operations and StrategyRegulatory Filings and Compliance
Diageo Executives Receive Matching Shares Under Long-Running Incentive Plan
Positive
Mar 10, 2026
Diageo has disclosed a series of small share transactions by senior executives under its 2001 Share Incentive Plan, in line with UK Market Abuse Regulation reporting requirements. Chief Financial Officer Nik Jhangiani and several Executive Committ...
Executive/Board ChangesRegulatory Filings and Compliance
Diageo Executives Disclose Routine Share Transactions After Incentive Awards Vest
Neutral
Mar 10, 2026
Diageo has disclosed several share transactions by senior executives following the vesting of awards under its 2014 and 2023 Long Term Incentive Plans and a special recruitment award. Chief Financial Officer Nik Jhangiani and Executive Committee m...
Regulatory Filings and Compliance
Diageo Chair Increases Stake with Share Purchase Disclosure
Positive
Mar 10, 2026
Diageo plc disclosed that its chair, Sir John Manzoni, has purchased 432 ordinary shares of the company at a price of £15.18 per share. The transaction, executed on 10 March 2026 on the London Stock Exchange, was made under an arrangement wit...
Regulatory Filings and Compliance
Diageo Confirms Total Voting Rights and Share Capital Structure
Neutral
Mar 2, 2026
Diageo has confirmed that as of 28 February 2026 its issued share capital comprised 2,432,425,480 ordinary shares, of which 205,973,302 were held in treasury without voting rights. This leaves a total of 2,226,452,178 voting rights, a key referenc...
Business Operations and StrategyDividendsFinancial DisclosuresM&A Transactions
Diageo Cuts Dividend and Trims Outlook as U.S. and China Weigh on Sales
Negative
Feb 25, 2026
Diageo reported first-half fiscal 2026 net sales of $10.5 billion, down 4%, as organic net sales fell 2.8% on softer demand in North America and continued weakness in Chinese white spirits, despite growth in Europe, Latin America and Africa. Opera...
Executive/Board ChangesRegulatory Filings and Compliance
Diageo Executives Acquire Shares Under One World Incentive Plan
Neutral
Feb 19, 2026
Diageo has disclosed routine share transactions by three Executive Committee members under its One World Share Incentive Plan. Sally Grimes and Hannah Brooks acquired American Depositary Shares on the NYSE, while John O’Keeffe bought ordinar...
Executive/Board Changes
Diageo Director Susan Kilsby Takes Interim Executive Role at Fortune Brands
Neutral
Feb 13, 2026
Diageo has disclosed that Senior Independent Director and Remuneration Committee Chair Susan Kilsby will temporarily serve as Executive Chair of Fortune Brands Innovations, Inc., assuming the chief executive’s duties from 12 February to 13 M...
Executive/Board ChangesRegulatory Filings and Compliance
Diageo Executives Acquire Shares Under Incentive Plan
Positive
Feb 10, 2026
Diageo has disclosed a series of routine share transactions by senior executives under its 2001 Share Incentive Plan, in line with U.K. Market Abuse Regulation transparency requirements. Chief Financial Officer Nik Jhangiani and several Executive ...
Regulatory Filings and Compliance
Diageo Chair Sir John Manzoni Buys Shares in Insider Deal Disclosure
Positive
Feb 10, 2026
Diageo plc disclosed that its chair, Sir John Manzoni, purchased 365 ordinary shares in the company on 10 February 2026 on the London Stock Exchange as part of an arrangement with the group. The transaction, carried out at a price of £17.99 p...
Executive/Board ChangesRegulatory Filings and Compliance
Diageo Executives Receive Matching Shares Under One World Incentive Plan
Neutral
Jan 21, 2026
Diageo has disclosed transactions by Executive Committee members Sally Grimes and Hannah Brooks under the company’s One World Share Incentive Plan, in line with UK Market Abuse Regulation requirements. Both executives purchased small amounts...
Regulatory Filings and Compliance
Diageo Executive Committee Member Acquires Shares Under Incentive Plan
Neutral
Jan 20, 2026
Diageo has disclosed a routine share transaction involving Executive Committee member John O’Keeffe under the company’s One World Share Incentive Plan. On 19 January 2026, O’Keeffe purchased ordinary partnership shares in Diageo ...
Executive/Board Changes
Diageo Director John Rishton Named Chair Designate of Imperial Brands
Neutral
Jan 20, 2026
Diageo has announced that non-executive director John Rishton will take on an additional external leadership role at Imperial Brands PLC, where he has been appointed non-executive director and chair designate from 13 July 2026, becoming chair on 1...
DividendsRegulatory Filings and Compliance
Diageo Discloses Dividend Reinvestment Share Allocation to Non-Executive Director
Neutral
Jan 16, 2026
Diageo has disclosed that non-executive director Valerie Chapoulaud-Floquet received 60 ordinary shares in the company through its Dividend Reinvestment Plan, tied to the final dividend paid on 4 December 2025. The transaction, executed on 9 Decem...
DividendsRegulatory Filings and Compliance
Diageo Discloses Chair’s Share Acquisition via Dividend Reinvestment Plan
Neutral
Jan 16, 2026
Diageo has disclosed that its chair, Sir John Manzoni, received 84 ordinary shares in the company under a Dividend Reinvestment Plan in connection with the final dividend paid on 4 December 2025. The small share acquisition, carried out via the Lo...
Regulatory Filings and Compliance
Diageo Executives Acquire Shares Under 2001 Incentive Plan
Neutral
Jan 13, 2026
Diageo has disclosed a series of routine share transactions by senior executives under its 2001 Share Incentive Plan, involving the purchase of partnership shares funded by salary deductions and the concurrent award of matching shares. The notifie...
Regulatory Filings and Compliance
Diageo Chair Sir John Manzoni Buys Additional Shares in Company
Positive
Jan 12, 2026
Diageo has disclosed that its chair, Sir John Manzoni, purchased 397 ordinary shares in the company on 12 January 2026 under an arrangement with the company, at a price of £16.49 per share on the London Stock Exchange. The transaction, report...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.