Diageo (DGE) AI Stock Analysis

• Market Cap: $45.78B
• Dividend Yield: 3.83%
• Average Volume (3M): 4.79M
• Price to Earnings (P/E): 25.9
• Beta (1Y): 0.69
• Revenue Growth: -2.83%
• EPS Growth: -40.42%
• Country: UK
• Employees: 30,092
• Sector: Consumer Defensive
• Sector Strength: 46
• Industry: Beverages - Wineries & Distilleries
• EPS (TTM): 0.49
• Shares Outstanding: 2,225,337,400
• 10 Day Avg. Volume: 3,568,321
• 30 Day Avg. Volume: 4,788,648
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.27
• Enterprise Value/Revenue: 2.87
• Enterprise Value/Gross Profit: 4.75
• Enterprise Value/Ebitda: 9.06
• 1Y Price Target: $2,369.72
• Price Target Upside: 15.37% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

• Rating: 67 Neutral
• Price Target: 2,272.00p ▲(10.61% Upside)

Diageo's overall score reflects strong revenue growth and operational efficiency, but is tempered by high leverage and cash flow challenges. While technical indicators show short-term bullish momentum, valuation concerns and macroeconomic uncertainties from tariffs and leverage impact the outlook.

Positive Factors

Cost Management

New management steps-up cost saving to support best-in-class margins and stabilize earnings.

Debt Management

The strategic optionality on Diageo's $22 billion debt with management highlighting a contribution to deleveraging from disposals and free cash flow is seen positively.

Financial Performance

The step-up in free cash flow is expected to be positive, reminiscent of a previous uptick under former CFO.

Negative Factors

CEO Transition

Debra Crew is stepping down as CEO of Diageo by mutual agreement, raising questions about the Board's decision and investor discontent.

Market Performance

US spirits remain weak and recovery is skewed to later in the year, with an expectation of continued market share loss.

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, and brandy, as well as beer, including cider and non-alcoholic products. It provides its products under the Johnnie Walker, Crown Royal, Bulleit and Buchanan's whiskies, Smirnoff, Cîroc and Ketel One vodkas, Casamigos, DeLeon and Don Julio tequilas, Captain Morgan, Baileys, Tanqueray, and Guinness brands. The company operates in North America, Europe, Turkey, Africa, Latin America, the Caribbean, the Asia Pacific, and internationally. The company was incorporated in 1886 and is headquartered in London, the United Kingdom.

How the Company Makes Money

Diageo generates revenue primarily through the sale of its alcoholic beverages across various markets. The company's revenue model is based on a combination of direct sales, distribution partnerships, and licensing agreements. Key revenue streams include premium spirits, which contribute significantly to profitability, as well as beer and ready-to-drink products. Additionally, Diageo benefits from strategic partnerships with distributors and retailers, enhancing its market reach and driving sales. The company also invests in marketing and brand development to maintain its competitive edge, leveraging its strong portfolio to capitalize on global trends in consumer preferences for premium and craft beverages.

Diageo Financial Statement Overview

Summary

Diageo shows strong profitability with stable margins and consistent revenue growth, despite a recent dip. The balance sheet reveals manageable leverage and robust return on equity, while cash flow remains strong with efficient conversion of income to cash.

Income Statement

Diageo demonstrates strong profitability with a stable gross profit margin and net profit margin. Revenue has shown consistent growth over the years, although there was a slight dip in the most recent TTM period. EBIT and EBITDA margins are healthy, reflecting good operational efficiency.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio, indicating manageable leverage. The equity ratio is stable, while return on equity is robust, underscoring effective use of equity to generate profit.

Cash Flow

Diageo's cash flow is strong, with healthy operating cash flow relative to net income. The free cash flow growth is positive, although it has slowed recently. The company maintains an efficient conversion of net income to cash.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	20.21B	20.25B	20.27B	20.55B	15.45B	12.73B
Gross Profit	12.21B	12.17B	12.20B	12.27B	9.48B	7.70B
EBITDA	6.41B	6.36B	7.24B	8.06B	4.93B	4.20B
Net Income	3.60B	2.35B	3.87B	4.45B	3.94B	2.66B
Balance Sheet
Total Assets	46.95B	49.32B	45.47B	44.88B	36.52B	31.95B
Cash, Cash Equivalents and Short-Term Investments	1.66B	2.65B	1.13B	1.81B	2.54B	2.87B
Total Debt	21.72B	24.40B	21.50B	20.79B	16.02B	14.73B
Total Liabilities	34.54B	36.14B	33.40B	33.17B	27.00B	23.52B
Stockholders Equity	10.28B	11.09B	10.03B	9.86B	7.80B	6.90B
Cash Flow
Free Cash Flow	5.57B	2.69B	4.55B	4.33B	2.84B	3.03B
Operating Cash Flow	7.13B	4.30B	6.07B	5.74B	3.94B	3.65B
Investing Cash Flow	-1.51B	-1.34B	-1.59B	-1.43B	-1.34B	-1.09B
Financing Cash Flow	-2.54B	-1.15B	-3.11B	-3.04B	-3.26B	-2.79B

Diageo Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2054.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 2054 is above the 20-day moving average (MA) of 2008.85, above the 50-day MA of 1944.25, and below the 200-day MA of 2141.52, indicating a neutral trend. The MACD of 41.93 indicates Negative momentum. The RSI at 56.37 is Neutral, neither overbought nor oversold. The STOCH value of 49.87 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CCH	75 Outperform	£13.86B	18.47	28.56%	1.99%	6.00%	42.42%
CWK	73 Outperform	£2.82B	21.18	14.14%	1.93%	4.77%	18.94%
BAG	71 Outperform	£762.05M	19.16	13.01%	2.46%	5.10%	3.23%
BATS	69 Neutral	£92.43B	31.03	6.03%	5.65%	-2.24%	―
TATE	69 Neutral	£2.39B	38.81	3.39%	3.67%	5.40%	-67.46%
DGE	67 Neutral	$45.78B	25.90	22.29%	3.83%	-2.83%	-40.42%
Sector *	63 Neutral	$20.46B	14.47	-3.60%	3.13%	2.63%	-6.18%

Diageo Corporate Events

Diageo Appoints Deirdre Mahlan as Interim CFO

Diageo has appointed Deirdre Mahlan as Interim Chief Financial Officer, effective 18 August 2025. Mahlan, with her extensive experience in the spirits industry and previous roles at Diageo, is expected to provide valuable guidance and support to the company’s Accelerate programme aimed at driving sustainable growth.

The most recent analyst rating on (GB:DGE) stock is a Buy with a £3150.00 price target. To see the full list of analyst forecasts on Diageo stock, see the GB:DGE Stock Forecast page.

Diageo Announces CEO Departure and Interim Leadership

Diageo has announced the immediate departure of Debra Crew as Chief Executive Officer, with Chief Financial Officer Nik Jhangiani stepping in as interim CEO. The company is conducting a comprehensive search for a new CEO while maintaining its financial guidance for fiscal 2025 and 2026. The board expressed gratitude for Crew’s leadership during challenging times and is focused on finding a leader to continue Diageo’s trajectory of sustainable value creation.

The most recent analyst rating on (GB:DGE) stock is a Buy with a £3450.00 price target. To see the full list of analyst forecasts on Diageo stock, see the GB:DGE Stock Forecast page.

Diageo Announces Share Transactions Under Incentive Plan

Diageo plc announced transactions under its 2001 Share Incentive Plan, involving the purchase of partnership shares and the award of matching shares to key executives. This move, disclosed in compliance with UK Market Abuse Regulation, reflects the company’s ongoing efforts to align management interests with shareholder value, potentially impacting its market positioning and stakeholder relations.

The most recent analyst rating on (GB:DGE) stock is a Buy with a £3150.00 price target. To see the full list of analyst forecasts on Diageo stock, see the GB:DGE Stock Forecast page.

Diageo Announces Total Voting Rights and Capital Update

Diageo plc has announced the total voting rights and capital as of June 30, 2025. The company reported an issued capital of 2,432,425,127 Ordinary Shares, with 207,098,769 shares held in Treasury, resulting in 2,225,326,358 voting rights. This information is crucial for shareholders to determine their interests in compliance with the FCA’s Disclosure Guidelines and Transparency Rules.

The most recent analyst rating on (GB:DGE) stock is a Buy with a £3450.00 price target. To see the full list of analyst forecasts on Diageo stock, see the GB:DGE Stock Forecast page.

Diageo Issues Freeshares to Executive Committee Members

Diageo plc announced the issuance of Freeshares under its One World Share Incentive Plan to members of its Executive Committee, including Alvaro Cardenas, Sally Grimes, and John O’Keeffe. These transactions, conducted on June 25, 2025, involve American Depositary Shares and Ordinary Shares, with some shares sold to cover tax liabilities. This move is part of Diageo’s strategy to align managerial interests with company performance, potentially impacting shareholder value and market perception.

The most recent analyst rating on (GB:DGE) stock is a Buy with a £3450.00 price target. To see the full list of analyst forecasts on Diageo stock, see the GB:DGE Stock Forecast page.

Diageo Finance Issues EUR 300 Million Fixed Rate Instruments

Diageo Finance plc has announced the issuance of EUR 300 million in fixed rate instruments due in 2031, under its European Debt Issuance Programme. This move consolidates the new issuance with an existing series, potentially strengthening Diageo’s financial position and offering opportunities for investors, while reinforcing its market presence in the beverage alcohol industry.

The most recent analyst rating on (GB:DGE) stock is a Buy with a £3450.00 price target. To see the full list of analyst forecasts on Diageo stock, see the GB:DGE Stock Forecast page.

Diageo Executive Purchases Company Shares

Diageo plc announced a transaction involving the purchase of its ordinary shares by Dayalan Nayager, a member of the Executive Committee. This transaction, conducted on the London Stock Exchange, reflects internal confidence in the company’s stock and could influence stakeholder perceptions positively.

The most recent analyst rating on (GB:DGE) stock is a Buy with a £3450.00 price target. To see the full list of analyst forecasts on Diageo stock, see the GB:DGE Stock Forecast page.

Diageo Publishes Prospectus for $1.5 Billion Bond Issuance

Diageo has announced the publication of a listing prospectus for its recent $1.5 billion bond issuance, which includes $750 million in 5.125% fixed rate notes due 2030 and $750 million in 5.625% fixed rate notes due 2035. This move, approved by the Financial Conduct Authority, underscores Diageo’s strategic financial management and commitment to maintaining robust capital structures, potentially impacting its market positioning and offering assurance to stakeholders about the company’s financial health.

The most recent analyst rating on (GB:DGE) stock is a Buy with a £3450.00 price target. To see the full list of analyst forecasts on Diageo stock, see the GB:DGE Stock Forecast page.

Diageo Announces Director Share Purchase

Diageo plc announced a transaction involving the purchase of its ordinary shares by Julie Brown, a Non-Executive Director, on June 9, 2025. This transaction, conducted on the London Stock Exchange, reflects internal movements in shareholding, potentially impacting stakeholder perceptions and the company’s governance dynamics.

The most recent analyst rating on (GB:DGE) stock is a Buy with a £3450.00 price target. To see the full list of analyst forecasts on Diageo stock, see the GB:DGE Stock Forecast page.

Diageo Announces Executive Share Transactions Under Incentive Plan

Diageo plc announced transactions related to its 2001 Share Incentive Plan, involving the purchase of partnership shares and the awarding of matching shares to key executives. These transactions, disclosed in compliance with UK Market Abuse Regulation, reflect the company’s ongoing commitment to aligning executive interests with shareholder value, potentially impacting Diageo’s market positioning and stakeholder relations.

The most recent analyst rating on (GB:DGE) stock is a Buy with a £3450.00 price target. To see the full list of analyst forecasts on Diageo stock, see the GB:DGE Stock Forecast page.

Diageo Reports Strong Q3 Sales Growth and Launches Accelerate Programme

Diageo reported a 2.9% increase in net sales for Q3 of fiscal 2025, driven by a 5.9% growth in organic net sales, despite challenges from foreign exchange and disposals. The company is launching the first phase of its Accelerate programme, aiming to enhance operational agility and efficiency, with a focus on cost savings and cash flow improvement. This initiative is expected to deliver significant free cash flow and support Diageo’s long-term growth strategy, while addressing the impact of tariffs and maintaining stakeholder value.

The most recent analyst rating on (GB:DGE) stock is a Buy with a £3450.00 price target. To see the full list of analyst forecasts on Diageo stock, see the GB:DGE Stock Forecast page.

Diageo Chair Receives Shares Through Dividend Reinvestment

Diageo plc announced that Sir John Manzoni, the company’s Chair, received ordinary shares through a Dividend Reinvestment Plan related to the interim dividend paid on April 24, 2025. This transaction, disclosed in compliance with the UK Market Abuse Regulation, highlights the ongoing engagement of key company figures in Diageo’s financial activities, potentially reinforcing shareholder confidence and market stability.

The most recent analyst rating on (GB:DGE) stock is a Buy with a £3450.00 price target. To see the full list of analyst forecasts on Diageo stock, see the GB:DGE Stock Forecast page.

Diageo Executives Participate in Share Incentive Plan

Diageo plc announced transactions under its 2001 Share Incentive Plan, involving the purchase of partnership shares and the awarding of matching shares to key executives. This move, disclosed in compliance with UK Market Abuse Regulation, underscores Diageo’s commitment to aligning management interests with shareholder value, potentially impacting executive motivation and company performance.

The most recent analyst rating on (GB:DGE) stock is a Buy with a £3450.00 price target. To see the full list of analyst forecasts on Diageo stock, see the GB:DGE Stock Forecast page.

Diageo Announces Director’s Share Acquisition via Dividend Reinvestment

Diageo plc announced that Valerie Chapolaud-Floquet, a Non-Executive Director, received ordinary shares through a Dividend Reinvestment Plan following the interim dividend paid on April 24, 2025. This transaction, disclosed in compliance with the UK Market Abuse Regulation, highlights Diageo’s ongoing commitment to shareholder engagement and transparency in its financial operations.

The most recent analyst rating on (GB:DGE) stock is a Buy with a £3450.00 price target. To see the full list of analyst forecasts on Diageo stock, see the GB:DGE Stock Forecast page.

Diageo Chair Purchases Shares, Indicating Confidence in Market Position

On May 12, 2025, Sir John Manzoni, Chair of Diageo plc, purchased ordinary shares of the company as part of an arrangement with the company. This transaction, conducted on the London Stock Exchange, reflects ongoing managerial investment in Diageo, potentially signaling confidence in the company’s market position and future prospects.

The most recent analyst rating on (GB:DGE) stock is a Buy with a £3450.00 price target. To see the full list of analyst forecasts on Diageo stock, see the GB:DGE Stock Forecast page.

Diageo Executive Committee Members Receive Shares via Dividend Reinvestment

Diageo plc announced that members of its Executive Committee, including Hina Nagarajan, Dan Mobley, and Cristina Diezhandino, received ordinary shares through a Dividend Reinvestment Plan following the interim dividend paid on April 24, 2025. This transaction, conducted on the London Stock Exchange, reflects the company’s ongoing commitment to rewarding its management team and aligning their interests with shareholder value.