DEO Stock Recent News

Goldman Sachs has shifted Diageo PLC (LSE:DGE) from 'sell' to 'neutral', following a 20% drop in the drinks giant's share price. The bank cites a more attractive valuation and what it calls “strategic optionality” as the main reasons for the move.

Investors looking for stocks in the Beverages - Alcohol sector might want to consider either Carlsberg AS (CABGY) or Diageo (DEO). But which of these two stocks is more attractive to value investors?

Diageo's growth was slow in FY2025. Revenues have been especially weak in China, the U.S., and Europe, but shown good growth in many emerging markets. The company still points out a weak macroeconomic backdrop, but instead, I believe that Diageo's slow growth reflects declining alcohol consumption. The Accelerate program is guided to raise margins. At the same time, a lot of concern around tariffs has been lifted.

2026 guidance is reassuring, with mid‑single‑digit EBIT growth. Despite cautious market sentiment and soft spirits category trends, this reinforced our Buy rating. Recent results show resilient sales, strong free cash flow, and market share gains in key regions. Cost-saving initiatives are accelerating, with targets raised to $625 million and ongoing CAPEX moderation supporting future margin expansion.

DEO posts a y/y decline in earnings and sales in FY25, citing weak volumes in key markets and warns of continued headwinds in FY26.

UBS has reiterated its ‘buy' rating on Diageo PLC (LSE:DGE), setting a 12-month price target of 2,450p, implying nearly 29% upside from current levels. It highlights improving earnings visibility for the drinks group, thanks to a renewed push on productivity, with around half of these savings being reinvested and the rest dropping straight to the bottom line.

One of the world's largest sellers of spirits has spent months downplaying the significance of Americans drinking less. Now, it says moderation may be a money-maker.

Diageo PLC (LSE:DGE) shares results for the past year beat forecasts, thanks to a stronger performance in the fourth quarter, with analysts saying the new outlook for 2026 was also ahead of expectations.

Diageo shares climbed in early Tuesday trade as investors digested the drinks maker's earnings report. CNBC's Karen Tso dives into the details.

Diageo PLC (LSE:DGE) reported a 28% drop in full-year profit but kept its dividend flat as expects to traverse a "challenging" market and generate modest profit growth for the coming year, helped by increased savings, product innovation and a strong presence in non-alcoholic drinks.  The Guinness, Baileys and Pimms maker reported a 0.1% decline in net sales to $20.2 billion for the year to 30 June 2025, bang in line with the average analyst forecast.