The massive EPS miss and weak FY2027 guidance (flat sales, declining operating income) point to continued margin compression from restructuring costs, impairment charges, and elevated SG&A. The mention of 'contemplated business transaction discussions' introduces M&A uncertainty. Monitor for potential deal announcements or further restructuring actions that could clarify the path to margin recovery.
Price Chart
Executive Summary
Brown-Forman reported Q4 FY2026 EPS of $0.12, a 68.2% miss vs consensus of $0.38, and revenue of $912M slightly below the $919.4M estimate. Full-year revenue declined 1% to $3.9B and EPS fell 17% to $1.53, with operating income down 10% driven by $132M in impairment charges and elevated SG&A from 'contemplated business transaction discussions.' Guidance for FY2027 calls for organic net sales to be approximately flat and organic operating income to decline 3-5%, signaling continued pressure on profitability.
Key Financial Metrics
Key Facts
- Q4 EPS of $0.12 missed consensus of $0.38 by 68.2%
- Q4 revenue of $912M slightly below $919.4M estimate, up 2% YoY
- Full-year revenue declined 1% to $3.9B; EPS fell 17% to $1.53
- Operating income decreased 53% in Q4 and 10% for the full year
- Non-cash impairment charges of $132M on Gin Mare and Diplomático brand names
- SG&A expenses rose 34% in Q4, partly due to 'contemplated business transaction discussions'
- FY2027 guidance: organic net sales approximately flat; organic operating income decline of 3-5%
- Cash flow from operations grew $402M to $1.0B; free cash flow increased $462M to $893M
- Company returned $827M to shareholders via dividends ($427M) and buybacks ($400M)
Financial Impact
Q4 EPS miss of $0.26 vs consensus; full-year EPS decline of $0.31; $132M in impairment charges
Risk Factors
- Continued decline in Jack Daniel's Tennessee Whiskey volumes (-3% shipments)
- Tariff and trade policy risks given global exposure
- Elevated SG&A from potential M&A activity
- Impairment risk on remaining intangible assets ($943M)
- Weak guidance implies no near-term earnings recovery
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000014693-26-000018 |
| Document: bfb-20260604.htm | 0000014693-26-000018 |
| Document: 0000014693-26-000018-index-headers.html | 0000014693-26-000018 |
| Document: 0000014693-26-000018-index.html | 0000014693-26-000018 |
| Document: 0000014693-26-000018.txt | 0000014693-26-000018 |
| 8-K Data (Synthetic) | 0000014693-26-000018 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 2, 2026 7w ago | 8-K | $27.15 | awaiting T+60 | — | $28.51 (+5.01%) |
Jun 4, 2026 20w ago | 8-K | $25.46 $27.22 | ▼ −6.91% | ▼ −5.03% | $28.51 (−11.98%) |
US Market Status
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