Diageo plc (DEO) AI Stock Analysis

Established in 1886 and based in London, Diageo plc is a global producer, marketer, and distributor of alcoholic beverages. The company manages an extensive portfolio covering scotch whisky, gin, vodka, rum, tequila, liqueurs, beer, cider, and non-alcoholic alternatives. Key global labels include Johnnie Walker, Guinness, Tanqueray, Baileys, Smirnoff, Captain Morgan, Crown Royal, Don Julio, Ciroc, Buchanan's, Casamigos, J&B, and Ketel One. Diageo operates across diverse geographies, including North America, Europe, Turkey, Africa, Latin America, the Caribbean, and the Asia Pacific, distributing drinks worldwide through its broad market network.

Over a five-year period from FY2021 to FY2026, Diageo posted a revenue compound annual growth rate of 9.0%. Annual revenue moved from $16.96B in FY2022 to a peak of $20.27B in FY2024, before falling to $20.25B in FY2025 and $19.60B in FY2026, a decline of 3.2%. Net income decreased from $3.87B in FY2024 to $2.35B in FY2025 and $1.73B in FY2026, with net margin declining from 19.1% to 8.8%. Operating margin was 28.4% in FY2026 compared to 21.4% in FY2025. In the latest quarter ended June 30, 2026, quarterly revenue fell 1.7% year-over-year, while quarterly earnings grew 2.9%.

As of June 30, 2026, Diageo held $2.02B in cash and short-term investments alongside total debt of $22.20B, yielding net debt of $20.18B. The company reported a current ratio of 1.60 and a debt-to-equity ratio of 2.04 against shareholders' equity of $10.87B. In FY2026, operating cash flow stood at $4.38B and free cash flow reached $3.19B. Capital expenditures totaled $1.19B, dividends paid were $1.84B, and share count fell 4.9% over five years.

Diageo trades at a trailing price-to-earnings multiple of 30.5x, above the 18.6x median of its US-listed Consumer Defensive peers. Its forward price-to-earnings ratio of 13.0x sits below the peer median of 14.3x. The company's enterprise value to EBITDA ratio is 11.2x, compared to the peer median of 11.7x, while price-to-sales is 2.7x versus 0.7x for peers. Over the trailing 12 months, DEO shares rose 1.2% while the S&P 500 returned 16.8%. Over five years, the stock fell 45.2% against an 83.0% gain for the benchmark.

Diageo offers a forward annual dividend of $2.00, representing a dividend yield of 2.10% with a semiannual distribution schedule. The payout ratio stands at 106.5%. The company has paid consecutive dividends for 36 years, generating a 5-year annualized dividend growth rate of 2.6%. The last ex-dividend date was October 16, 2026.

Wall Street coverage includes 4 Strong Buy ratings, 1 Buy, 2 Holds, 0 Sells, and 1 Strong Sell. The mean price target is $106.29, which is 11.8% above the October 16, 2026 close of $95.11. For the current fiscal year ending June 30, 2027, analysts estimate EPS of $6.71 and revenue of $19.15B. Diageo registered 0 EPS beats over the last 4 quarters.

This page is an AI-written research summary of Diageo plc (DEO). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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