Jack Daniel's maker Brown-Forman beats Q3 estimates, but outlook subdued

4th Mar 2026 15:12

(Sharecast News) - Brown-Forman's share price dropped more than 7% on Wednesday despite the Jack Daniel's maker beating results with its fiscal third-quarter results, as ongoing challenges in developed markets offset strong emerging markets.

The company, which also owns Herradura tequila and Woodford Reserve bourbon, reiterated its target for full-year organic net sales and organic operating income both to decline in the low-single digit range.

According to consensus forecasts, analysts expect organic sales to fall by 1.7% over the year.

Brown-Forman said sales over the three months to 31 January were up 2% year-on-year at $1.1bn, rising 1% on an organic basis, as growth in emerging markets and the travel retail segment was offset by weaker performances in the US and 'developed international' markets.

Nevertheless, the company reported a slight fall in third-quarter net profits to $267m from $270m a year earlier, with earnings per share of 58 cents beating the 47 cents estimate.

The company said the operating environment over the rest of the fiscal year is expected to remain challenging, with "low visibility due to macroeconomic and geopolitical volatility as we face headwinds from consumer uncertainty and lower non-branded sales of used barrels".

"We remain focused on building our business for the long term and navigating the current environment at pace with strategic initiatives in fiscal 2026 that we believe will unlock future growth led by the significant evolution of our US distribution, the restructuring initiative, and meaningful new product innovation," the firm added.

The stock was down 7.5% at $26.03 by 1620 GMT.