Brown-Forman (BF.B) has reported its FY 2026 results with fourth quarter revenue of US$912 million and basic EPS of US$0.12, alongside trailing twelve month revenue of US$3.9 billion and EPS of US$1.53 that frame the year as a whole. Over recent periods, quarterly revenue has ranged from US$894 million to US$1.1 billion while EPS moved between US$0.31 and US$0.58, giving investors a clear view of how the top line and per share earnings have tracked into these latest figures. With trailing net margins now lower than a year ago, this set of numbers puts the focus squarely on how Brown-Forman is balancing growth, pricing and cost control.

See our full analysis for Brown-Forman.

With the headline figures on the table, the next step is to set these results against the widely held stories about Brown-Forman to see which narratives line up with the data and which start to look out of date.

Wall Street's queuing for one rocket. While SpaceX counts down to its IPO, other companies tied to the new space race are already in orbit. → 20 Compelling Space Companies watchlist · Global Space Race Investing Ideas screener · Scan the sector by valuation on Rocket Lab's valuation page.

Margins Slip From 21.9% To 18.2%

• Over the last 12 months, net margin declined from 21.9% to 18.2% on trailing revenue of about US$3.9b and net income of US$715 million, so more of each sales dollar is now being absorbed by costs than a year ago.
• Bulls highlight premiumization and new products as long term margin supports, yet the move from 21.9% to 18.2% shows:
  • Rising costs or pricing pressure are currently outweighing the benefits that bullish investors expect from higher priced spirits and new flavored Jack Daniel’s variants.
  • This margin compression sits directly against the bullish view that distribution changes and at home consumption trends can steadily lift profitability from today’s levels.

Bulls argue that today’s margin dip is temporary, but the numbers give a more cautious baseline to test that view against the full 🐂 Brown-Forman Bull Case

EPS Trend Softens On TTM Basis

• Trailing twelve month basic EPS moved from US$2.09 in FY 2025 Q3 to US$1.53 in FY 2026 Q4, with net income over the same window moving from US$989 million to US$715 million, so shareholders are currently seeing lower earnings per share than a year and a half ago.
• Bears argue that rising health awareness and tighter regulation could cap long term earnings power, and the EPS pattern provides fuel for that concern:
  • The step down from US$2.09 to US$1.53 per share aligns with the bearish claim that earnings may struggle if alcohol consumption growth slows in mature markets.
  • At the same time, the presence of US$715 million of trailing net income shows the business is still profitable, which challenges more extreme bearish ideas of a rapid collapse in earnings.

Skeptics see the softer EPS trend as a warning sign, and this trailing record is a useful reference point when you read the 🐻 Brown-Forman Bear Case

P/E Of 16.3x Versus 28.06 Target And DCF

• With the stock at US$25.46, the trailing P/E of 16.3x sits modestly below the 16.9x industry average and well below the 41.2x peer average, while a DCF fair value of US$40.16 and an analyst price target of US$28.06 both sit above the current share price.
• Consensus narrative talks about modest forecast growth of 5.6% a year for earnings and 2.4% a year for revenue, and the current multiples create an interesting tension:
  • The lower P/E versus peers, combined with a DCF fair value above the share price, supports the idea that some investors may see value despite slower forecast growth than the broader US market.
  • However, the same forecasts and recent margin compression to 18.2% give context for why the share price might sit below both the analyst target of US$28.06 and the DCF fair value, as the market weighs value signals against operational pressures.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Brown-Forman on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

With sentiment split between cautious and optimistic in this article, it makes sense to look at the full picture yourself and act while the details are fresh in mind. To weigh up both sides of the story, start with the 4 key rewards and 1 important warning sign.

See What Else Is Out There

Brown-Forman’s softer trailing EPS, lower net margin and below target share price all highlight pressure on profitability and sentiment around its earnings story.

If that mix of margin strain and earnings softness leaves you cautious, compare it against companies screened as quality opportunities by the 47 high quality undervalued stocks.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.