Diageo · Q3 2026 earnings

Briefing

Diageo fiscal Q3 2026 trading: $4.5B net sales up 0.3% organic; North America still weak

Diageo issued its fiscal 2026 third-quarter trading statement for the three months ended March 31, 2026. Reported net sales rose 2.3% to $4.477 billion, while organic net sales grew 0.3% on volume up 0.4% and price/mix down 0.1%. Europe, Latin America and Caribbean, and Africa delivered strong organic growth (8.8%, 16.2%, and 17.1%, respectively), helped partly by Easter timing and advance sales ahead of the FIFA World Cup, but North America organic net sales fell 9.4% on continued U.S. spirits weakness. Asia Pacific organic net sales dipped 0.8% as double-digit declines in Chinese white spirits offset modest international premium spirits growth. Management reiterated fiscal 2026 guidance for organic net sales down 2–3%, organic operating profit flat to up low single digits, and about $3 billion of free cash flow, and said a broader strategy update will come with full-year results on August 6, 2026.

• Q3 reported net sales of $4.477 billion rose 2.3%; organic net sales grew 0.3%.
• North America organic net sales fell 9.4% on soft U.S. spirits demand.
• Europe (+8.8% organic), LAC (+16.2%), and Africa (+17.1%) led regional performance.
• Accelerate cost program remains on track for about $300 million of savings by fiscal year-end.
• Full-year fiscal 2026 guidance was unchanged, including organic net sales down 2–3%.

Headline financials

Fiscal 2026 outlook unchanged: organic net sales down 2–3%, organic operating profit flat to up low single digits, free cash flow about $3 billion, and capex at the lower end of $1.2–1.3 billion.