Brown-Forman Class B

BF.B

Market cap $12.2B

Brown-Forman's Q4 EPS misses estimates, but sales beat on pricing and innovation led by Jack Daniel's Tennessee Blackberry amid a tough FY27 view.

Brown-Forman Corporation reported stable earnings in Q4. The performance is good when considering significant sector pressure in developed markets. Successful product launches, distribution changes, and better growth in emerging markets continue to drive Brown-Forman's relative strength. The FY2027 outlook isn't as good. Slowing alcohol consumption weighs on the sales outlook, and Brown-Forman will start to bottle more expensive inventory from early 2020s.

Brown-Forman is upgraded to Buy as its current valuation offers a solid margin of safety for a resilient, high-quality business. BF's stable cash flow and improved margins underscore robust capital allocation and operational strength, despite flat sales and macro headwinds. Management expects FY27 net sales to remain flat and organic operating income to decline 3–5%, but CAPEX will also drop significantly, supporting ongoing cost-saving initiatives.

Brown-Forman Corporation receives a Hold rating, reflecting structural headwinds and muted long-term growth prospects despite strong brands. The recent quarter showed 2% revenue growth and gross margin gains, but operating income fell 53% and EPS declined 62%. Emerging markets and premiumization trends support BF.B's brand strength, with double-digit organic growth in Mexico, Brazil, and Turkey.

Brown-Forman Corporation (BF.B) Q4 2026 Earnings Call Transcript

Only 54% of Americans said they consume alcohol, according to a Gallup poll published last August—a record low since polling began in 1939—as health concerns around even moderate drinking continue to grow. Beer also remains the beverage of choice for most Americans.

Brown Forman NYSE: BF.A said it finished fiscal 2026 ahead of its organic expectations, despite continued pressure from weaker discretionary spending in the U.S. and developed international markets, lower used barrel sales and the ongoing absence of American spirits from many Canadian shelves.

Brown-Forman B (BF.B) came out with quarterly earnings of $0.12 per share, missing the Zacks Consensus Estimate of $0.33 per share. This compares to earnings of $0.31 per share a year ago.

Brown-Forman posted higher revenue in the fiscal fourth quarter, but said pressures to the broader spirits market are expected to keep sales flat in the new fiscal year.

Whiskey maker Brown-Forman beat Wall Street estimates for ​fourth-quarter net sales on Thursday, helped ‌by steady demand for its premium brands, including Jack Daniel's, especially among affluent consumers.