Diageo Revises Fiscal 2026 Forecast Amid Demand Struggles

Diageo has revised its fiscal 2026 sales and profit forecasts, attributing the changes to reduced demand in North America and China, along with shifts in the global spirits market. The company plans cost-cutting measures and potential asset sales to manage its $22 billion debt amidst these challenges.

Diageo, the renowned spirits producer behind iconic brands like Johnnie Walker and Smirnoff, has adjusted its fiscal 2026 sales and profit projections. This move comes as the company faces declining demand in significant markets like North America and China.

The company, which is navigating a challenging post-pandemic landscape, is also addressing issues such as tariff uncertainties and evolving consumer preferences. To mitigate these challenges, Diageo is exploring cost-cutting strategies and considering the sale of substantial assets to manage its hefty $22 billion debt.

In response to these market conditions, Diageo anticipates flat or slightly decreased sales with low- to mid-single-digit growth in operating profit by fiscal 2026. The adjustments signify a strategic shift to ensure financial stability amidst ongoing global market pressures.

(With inputs from agencies.)