US Stock Movement | Downgrade of FY2026 Profit Guidance Diageo(DEO.US) drops more than 12% pre-market

2026-02-26 05:27:58

Abstract generation in progress

Diageo (DEO.US) stock price dropped over 12% in pre-market trading on Wednesday, trading at $89.76. According to news reports, Diageo has cut its dividend and lowered its organic sales and profit guidance for fiscal year 2026, mainly due to weakness in the US and Chinese markets and ongoing challenging trading conditions in the first half of the year.

Diageo expects organic sales to decline by 2% to 3% in fiscal year 2026, while organic operating profit is expected to remain flat or grow to low single digits. Previously, the outlook was for flat to slightly declining organic net sales and low to mid-single-digit growth in organic operating profit. Regarding shareholder dividends, the board announced a interim dividend of $0.20 per share, down from $0.405 per share last year.

“The board has made a tough decision to reduce the dividend to a more appropriate level, which will accelerate the strengthening of our balance sheet,” said CEO Dave Lewis, noting that the group needs to improve financial flexibility. “We believe this is the right move to ensure Diageo maintains its position as a leading international spirits company and to drive stronger shareholder value in the coming years.”

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