Overview

• Spirits maker's fiscal Q3 net sales rose 2% to $1.1 bln

• Operating income for fiscal Q3 increased 21% to $340 mln

• Company completed $400 mln share repurchase program in December 2025

Outlook

• Brown-Forman expects fiscal 2026 organic net sales to decline in the low-single digit range

• Company anticipates organic operating income decline in the low-single digit range

• Capital expenditures planned to be between $110 mln and $120 mln

• Effective tax rate forecast updated to approximately 19% to 21%

Result Drivers

• KORBEL RELATIONSHIP END - Year-to-date fiscal 2026 net sales decline attributed to the end of the Korbel Champagne Cellars relationship and absence of Sonoma-Cutrer TSA

• GEOGRAPHIC SALES SHIFT - Growth in Emerging markets and Travel Retail offset by declines in U.S. and Developed International markets

• WHISKEY SALES INCREASE - Whiskey net sales increased 2% driven by innovation, despite declines in some Jack Daniel's products

Company press release: ID:nBw9YlPP1a

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q3 EPS		$0.58

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 8 "hold" and 7 "sell" or "strong sell"

• The average consensus recommendation for the distillers & wineries peer group is "buy."

• Wall Street's median 12-month price target for Brown-Forman Corp is $30.00, about 6.6% above its March 3 closing price of $28.13

• The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 17 three months ago

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