Brown-Forman vs Diageo: Revenue, Profit and Business Model
Brown-Forman reported $3.9B of revenue in FY2026 and $715M of net income. Diageo reported $19.6B of revenue in FY2026 and — of net income.
Latest financial snapshot
Brown-Forman
- Latest revenue
- $3.9B (FY2026)
- Net income
- $715M
- Net margin
- 18.2%
- Revenue growth
- -2.4% a year, FY2023–FY2026
Diageo
- Latest revenue
- $19.6B (FY2026)
- Net income
- —
- Net margin
- 0.0%
- Revenue growth
- -1.5% a year, FY2023–FY2026
Financial summary
Brown-Forman
Fiscal 2026 (year ended April 30, 2026) net sales fell 1% to $3.93 billion, flat on an organic basis, as the end of the Korbel agency and the lapse of a Sonoma-Cutrer transition services agreement offset the launch of Jack Daniel's Tennessee Blackberry. Gross margin widened 160 basis points to 60.5%, but operating income fell 10% to $1.0 billion and the operating margin slipped to 25.5% on higher non-cash impairment charges and SG&A costs that included the contemplated business-combination talks. Diluted EPS was $1.53. Cash generation was the standout: operating cash flow rose $402 million to about $1.0 billion and free cash flow rose $462 million to $893 million, funding $427 million of dividends and $400 million of buybacks. In the first quarter of fiscal 2027, net sales slipped 1% to $911 million and diluted EPS rose 6% to $0.38. Brown-Forman has paid a regular quarterly dividend for 82 consecutive years and raised it for 42.
Diageo
Diageo's reported net sales were $20.555B in FY2023, $20.269B in FY2024, $20.245B in FY2025 and $19.643B in FY2026. FY2026 operating profit before exceptional items was $5.683B (28.9% margin), but reported operating profit fell 27.2% to $3.156B after $0.9B of restructuring costs and $1.5B of impairments, largely tied to Türkiye and the Don Papa rum brand. Free cash flow rose $463M to $3.211B and net debt was $20.5B. In February 2026 the company adopted a 30%-50% payout dividend policy, cutting the full-year dividend to 50 cents per share to protect investment and reduce leverage.
Revenue and profit by year
Brown-Forman
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2026 | $3.9B | $715M | 18.2% | -1.2% | Source |
| FY2025 | $4B | $869M | 21.9% | -4.9% | Source |
| FY2024 | $4.2B | $1B | 24.5% | -1.2% | Source |
| FY2023 | $4.2B | $783M | 18.5% | — | Source |
Where the revenue comes from
Brown-Forman
- Whiskey~70%
The Jack Daniel's family, Woodford Reserve, Old Forester and The GlenDronach, Benriach and Glenglassaugh Scotch malts. Whiskey net sales rose 3% in fiscal 2026 (+1% organic) on the Tennessee Blackberry launch and Woodford Reserve growth in the U.S., offsetting declines in Jack Daniel's Tennessee Whiskey.
- Ready-to-Drink
growth category
New Mix canned cocktails and Jack Daniel's RTD/RTP products, including Jack & Coke made with The Coca-Cola Company. RTD net sales rose 11% in fiscal 2026 and 20% in the first quarter of fiscal 2027, led by New Mix.
- Tequila~10%
Herradura and el Jimador. Tequila net sales fell 4% in fiscal 2026 and 12% in the first quarter of fiscal 2027 on lower U.S. volumes and lower net pricing.
- Rest of Portfolio
single digits
Gin Mare, Diplomático, Fords Gin, Chambord, Slane and agency brands in Japan and Mexico. Reported net sales fell 31% in fiscal 2026 after the Korbel agency ended, but rose 18% organically on strong double-digit Gin Mare and Diplomático growth.
- Non-branded and bulksmall
Mostly used-barrel sales to other producers; these fell 68% in fiscal 2026 and 61% in the first quarter of fiscal 2027.
Diageo
- Spirits
Core business
Scotch, tequila, vodka, gin, rum, Canadian whisky, liqueurs, and other premium spirits brands.
- Beer
Guinness-led
Beer revenue led by Guinness, especially in Ireland, Great Britain, Africa, and global premium beer markets.
- Ready-to-Drink and Other
Growth category
Canned cocktails, convenience formats, and adjacent beverage products tied to existing brands.
Business model and strategy
Brown-Forman
How it makes money
Brown-Forman makes money by distilling, aging, bottling and marketing branded spirits, then selling them to distributors, state control boards and, in markets where it owns distribution, directly to retailers and bars. Whiskey, led by the Jack Daniel's family, generates roughly 70% of net sales;
Growth strategy
Management lists three priorities: expand the geographic footprint, build brands that resonate with consumers, and improve operational efficiency.
Competitive advantage
Brown-Forman's core advantage is Jack Daniel's, a Tennessee whiskey brand dating to 1866 with global recognition that a new entrant could not build quickly. All Jack Daniel's Tennessee whiskey comes from one distillery in Lynchburg, Tennessee, which gives the brand a consistent origin story.
Diageo
How it makes money
Diageo makes money by producing, ageing and marketing branded spirits and beer and selling them to distributors, retailers, bars and travel retail. Most value comes from brand equity rather than the liquid: premium and super-premium labels such as Johnnie Walker Blue Label, Don Julio 1942 and Guinness carry high gross margins. In the US it sells through the three-tier distributor system;
Growth strategy
Under Lewis, Diageo set three priorities in early 2026: relevant brands in competitive category strategies; 'Customer, Customer, Customer'; and a more agile, lower-cost operating framework. Savings are meant to fund marketing and price investment without reducing operating profit, while Guinness, which has grown strongly in Great Britain and Ireland, is getting more brewing capacity.
Competitive advantage
Diageo's advantage rests on category-leading brands and inventory that takes years to build. Its Scotch business depends on large stocks of maturing whisky across dozens of Scottish distilleries, and Guinness has been brewed at St. James's Gate since 1759.
Questions about Brown-Forman vs Diageo
Which company has higher revenue — Brown-Forman Corporation or Diageo plc?
Brown-Forman Corporation reported $3.9B (FY2026), while Diageo plc reported $19.6B (FY2026). By last reported revenue, Diageo plc is the larger business, with Brown-Forman Corporation reporting a smaller revenue base.
What is the market cap of Brown-Forman Corporation vs Diageo plc?
Brown-Forman Corporation's market capitalisation stands at $12.1B, while Diageo plc's is $47.8B. Diageo plc carries the higher market valuation, reflecting investors' expectations of its future earnings power relative to Brown-Forman Corporation.
Which is more financially efficient — Brown-Forman Corporation or Diageo plc?
Brown-Forman Corporation generates $802k / employee in revenue per employee, while Diageo plc generates $703k / employee. Brown-Forman Corporation shows higher revenue efficiency per headcount, though this reflects business model differences — capital-light software companies routinely outperform labour-intensive manufacturers on this metric.
How do Brown-Forman Corporation and Diageo plc make money?
Brown-Forman Corporation and Diageo plc generate revenue in fundamentally different ways. Brown-Forman Corporation: Brown-Forman makes money by distilling, aging, bottling and marketing branded spirits, then selling them to distributors, state control boards and, in markets where it owns distribution, directly to retailers and bars. Diageo plc: Diageo makes money by producing, ageing and marketing branded spirits and beer and selling them to distributors, retailers, bars and travel retail.
Which company is valued higher relative to revenue — Brown-Forman Corporation or Diageo plc?
On a price-to-sales (P/S) basis, Brown-Forman Corporation trades at 3.1x P/S and Diageo plc at 2.4x P/S. Brown-Forman Corporation commands a higher revenue multiple, typically indicating that investors expect faster growth or higher future margins compared to Diageo plc. A higher multiple is not inherently better — it may also signal that the stock is priced for perfection.
Is Brown-Forman Corporation bigger than Diageo plc?
By last reported revenue, Diageo plc ($19.6B (FY2026)) is the larger company compared to Brown-Forman Corporation ($3.9B (FY2026)). Revenue scale is one dimension of size — market capitalisation, employee count, and geographic reach are also relevant depending on the context.
Figures come from each company's filings and the sources linked beside them. Amounts reported in another currency are shown in US dollars at an approximate rate and marked with ~. Back to the Brown-Forman vs Diageo overview