Results were largely in line with expectations and guidance was reaffirmed, suggesting limited near-term catalyst. Watch for consumer demand trends in developed markets (Germany, France, Spain) and the pace of Jack Daniel's Tennessee Blackberry international rollout as key swing factors for FY2027.
Price Chart
Executive Summary
Brown-Forman reported Q1 FY2027 net sales of $911M (-1% YoY), in line with its own expectations, and diluted EPS of $0.38 (+6% YoY). Reported operating income fell 3% but organic operating income rose 4%, while gross margin expanded 40bps to 60.2%. The company reaffirmed its full-year FY2027 outlook of flat organic net sales and a 3-5% organic operating income decline, reflecting persistent macroeconomic headwinds in developed markets.
Key Financial Metrics
Key Facts
- Q1 FY2027 net sales $911M, down 1% reported and organic vs. prior year
- Diluted EPS $0.38, up 6% YoY (from $0.36), aided by lower postretirement expense and prior-year share repurchases
- Reported operating income $252M, down 3%; organic operating income up 4%
- Gross margin 60.2%, +40bps; operating margin 27.7%, -50bps
- Cash from operations $173M (+$13M); free cash flow $161M (+$32M)
- Full-year FY2027 guidance reaffirmed: organic net sales ~flat, organic operating income decline 3-5%
- Repaid $343M (€300M) 1.20% senior notes at July 7, 2026 maturity
Financial Impact
Net sales declined $13M YoY to $911M; EPS increased $0.02 to $0.38; operating income fell $8M to $252M
Risk Factors
- Continued macroeconomic pressure and geopolitical instability in developed markets
- Decline in Tequila portfolio (-12% reported) and non-branded/bulk sales (-61%)
- Estimated net decrease in U.S. distributor inventories (-4%) could pressure future shipments
- Foreign exchange headwinds and tariff risks
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000014693-26-000048 |
| Document: bfb-20260902.htm | 0000014693-26-000048 |
| Document: 0000014693-26-000048-index-headers.html | 0000014693-26-000048 |
| Document: 0000014693-26-000048-index.html | 0000014693-26-000048 |
| Document: 0000014693-26-000048.txt | 0000014693-26-000048 |
| 8-K Data (Synthetic) | 0000014693-26-000048 |
Track record builds as more directional reports settle.
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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