The earnings call highlighted a return to growth in organic net sales and market share gains in key regions. Strong performances in Tequila and Guinness, along with strategic investments, were positive aspects. However, the decline in operating profit, the impact of tariffs, and challenges in the Scotch category presented significant concerns. The uncertainty around tariffs and higher debt levels add complexity to the outlook.

Company Guidance

In the recent call, Diageo shared a promising outlook despite ongoing macroeconomic challenges and geopolitical uncertainties, particularly in the U.S. due to new tariff announcements. The company reported a 1% growth in organic net sales in the first half of fiscal 2025, with market share gains in 65% of its net sales in measured markets. Notably, North America showed slight but meaningful sequential improvement, driven by strong performances from brands like Don Julio and Crown Royal. The company's operating profit declined by 1.2%, attributed to increased overhead costs, but saw a $125 million increase in free cash flow to approximately $1.7 billion. Diageo emphasized its focus on sustainable top-line growth, operating leverage, and maximizing free cash flow, while acknowledging the need to address its leverage ratio, which increased to 3.1x. Looking ahead, the company plans strategic investments and operational adjustments to navigate the evolving tariff situation while maintaining a commitment to shareholder returns through dividends and buybacks.

Return to Growth in Organic Net Sales

Despite a challenging macro environment, organic net sales grew by 1% with growth in four out of five regions, including North America.

Market Share Gains

Held or gained market share in 65% of net sales in measured markets, with strong performances in the U.S., Europe, and Greater China.

Tequila and Guinness Strong Performance

Tequila organic net sales were up 21%, led by Don Julio. Guinness achieved its 8th consecutive half of double-digit growth, with 17% organic net sales growth.

Strong Free Cash Flow

Free cash flow increased by $125 million to approximately $1.7 billion, driven by working capital management.

Digital and Route-to-Market Investments

Strategic investments in digital and route-to-market are progressing well, expected to drive future outperformance.

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Diageo (DEO) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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DEO Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Aug 05, 2025	2025 (Q4)	2.50 / -	2.88	―	―	―
Feb 04, 2025	2025 (Q2)	4.04 / 3.91	4.32	-9.54% (-0.41)
Jul 30, 2024	2024 (Q4)	2.92 / 2.88	1.561	84.50% (+1.32)
Jan 30, 2024	2024 (Q2)	4.24 / 4.32	4.858	-11.07% (-0.54)
Aug 01, 2023	2023 (Q4)	3.33 / 1.56	3.19	-51.07% (-1.63)
Jan 26, 2023	2023 (Q2)	5.13 / 4.86	4.575	6.19% (+0.28)
Jul 28, 2022	2022 (Q4)	2.72 / 3.19	2.66	19.92% (+0.53)	―	―
Jan 27, 2022	2022 (Q2)	4.46 / 4.58	3.699	23.68% (+0.88)	―	―
Jul 29, 2021	2021 (Q4)	2.46 / 2.66	1.521	74.88% (+1.14)	―	―
Jan 28, 2021	2021 (Q2)	- / 3.70	4.203	-11.99% (-0.50)	―	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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DEO Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Feb 04, 2025	$116.93	$115.95	-0.84%
Jul 30, 2024	$129.10	$123.03	-4.70%
Jan 30, 2024	$140.31	$140.41	+0.07%
Aug 01, 2023	$168.41	$167.80	-0.36%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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