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Brown Forman (BF.B) Q2 FY2026 earnings: revenue $1.0 billion, down 5.4% on the year

Brown Forman Corp. (BF.B) reported revenue of $1.0 billion for Q2 FY2026, the quarter ended 31 October 2025, down 5.4% on the same quarter a year earlier. Net income was $224 million, down 13.2% on the year, and diluted earnings per share $0.47. The figures are the company's own, from the 10-Q it filed with the SEC on 4 December 2025.

Revenue
$1.0 billion
-5.4% on the year · +12.1% on the quarter
Q3 FY2024Q2 FY2026
Operating margin
29.4%
31.1% a year earlier
Q3 FY2024Q2 FY2026
Net income
$224 million
-13.2% on the year · +31.8% on the quarter
Q3 FY2024Q2 FY2026
Diluted EPS
$0.47
-14.5% on the year · +30.6% on the quarter
Q3 FY2024Q2 FY2026

this quarterthe same quarter a year earlierHover a bar for its figure.

What management said

Guidance figures: 1 lowered, 1 kept.

  • Second-quarter sales and profit declined: Net sales fell 5% to $1.0 billion, down 2% organically. Operating income fell 10% to $305 million, down 9% organically. Diluted EPS fell 14% to $0.47.
  • First-half sales flat organically: First-half net sales fell 4% to $2.0 billion, flat organically, mainly from the Korbel exit and the absence of the Sonoma-Cutrer TSA. Operating income fell 9% to $565 million; diluted EPS fell 13% to $0.83.
  • New Mix sales rose 28%: New Mix net sales rose 28% (+30% organic), led by Mexico, with market share gains. Ready-to-Drink sales rose 5%, while Jack Daniel’s RTD/RTP fell 4%.
Read the earnings call summary

Income statement (profit and loss)

$ millionQ2 FY2026Q1 FY2026Q2 FY2025On the quarterOn the yearLast 8 quarters
Revenue1,0369241,095+12.1%-5.4%
Cost of revenue421372449+13.2%-6.2%
Gross profit615552646+11.4%-4.8%
Gross margin59.4%59.7%59.0%
Selling, general and administrative187177185+5.6%+1.1%
Operating income305260341+17.3%-10.6%
Operating margin29.4%28.1%31.1%
Interest expense26.025.032.0+4.0%-18.8%
Pre-tax income279220313+26.8%-10.9%
Income tax55.050.055.0+10.0%0.0%
Effective tax rate19.7%22.7%17.6%
Net income224170258+31.8%-13.2%
Net margin21.6%18.4%23.6%
Diluted EPS$0.47$0.36$0.55+30.6%-14.5%
$ million except per share.
Read moreFree cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are. A quarter marked † is shown as the company last restated it in a later filing, so it compares with the quarters around it on one basis; rest on a figure for the one first filed. EPS is as filed.

Cash flow

$ millionQ2 FY2026Q1 FY2026Q2 FY2025On the quarterOn the yearLast 8 quarters
Operating cash flow132160112-17.5%+17.9%
Capital expenditure25.031.031.0-19.4%-19.4%
Free cash flow10712981.0-17.1%+32.1%
Free cash flow margin10.3%14.0%7.4%
Cash from investing-25.02.0-31.0
Cash from financing-261-138-78.0
Depreciation and amortisation22.022.022.00.0%0.0%
Share-based compensation8.04.09.0+100.0%-11.1%
Dividends paid1071071030.0%+3.9%
Diluted shares, weighted473m473m473m-0.1%-0.1%
Shares outstanding at period end463m473m473m-2.0%-2.0%

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet

$ millionQ2 FY2026Q1 FY2026Q2 FY2025On the quarterOn the yearLast 8 quarters
Shareholders' equity4,1343,9883,705+3.7%+11.6%
Debt2,6472,7013,203-2.0%-17.4%
Other liabilities1,4401,4821,424-2.8%+1.1%
Total liabilities and equity8,2218,1718,332+0.6%-1.3%
Fixed assets1,1011,0941,060+0.6%+3.9%
Goodwill1,5101,5071,468+0.2%+2.9%
Intangible assets1,0751,0711,000+0.4%+7.5%
Cash and equivalents319471416-32.3%-23.3%
Receivables1,042847954+23.0%+9.2%
Inventory2,5592,5862,565-1.0%-0.2%
Other assets615595869+3.4%-29.2%
Total assets8,2218,1718,332+0.6%-1.3%

Questions

What was Brown Forman's revenue in Q2 FY2026?

Brown Forman (BF.B) reported revenue of $1.0 billion for Q2 FY2026, the quarter ended 31 October 2025, down 5.4% on the same quarter a year earlier.

How much did Brown Forman earn in Q2 FY2026?

Net income for Q2 FY2026 was $224 million, down 13.2% on the year, and diluted earnings per share $0.47.

When did Brown Forman report Q2 FY2026 results?

Brown Forman filed its 10-Q for the quarter ended 31 October 2025 with the SEC on 4 December 2025.

Quarterly results, the last 20 quarters

Q2 FY2022Q3 FY2022Q4 FY2022 *Q1 FY2023Q2 FY2023Q3 FY2023Q4 FY2023 *Q1 FY2024Q2 FY2024Q3 FY2024Q4 FY2024 *Q1 FY2025Q2 FY2025 †Q3 FY2025Q4 FY2025 * †Q1 FY2026Q2 FY2026Q3 FY2026Q4 FY2026 *Q1 FY2027
Revenue9941,0379961,0071,0941,0811,0461,0381,1071,0699649511,0951,0358949241,0361,056912911
Cost of revenue404415370385481457411387436434395386449416381372421416341362
Gross profit590622626622613624635651671635569565646619513552615640571549
Gross margin59%60%63%62%56%58%61%63%61%59%59%59%59%60%57%60%59%61%63%60%
SG&A165162195175180186201200192203231188185178193177187184259185
Operating income32234724634331317329832733937337528134128020526030534096.0252
Operating margin32%33%25%34%29%16%28%32%31%35%39%30%31%27%23%28%29%32%11%28%
Interest expense20.020.021.019.018.024.029.029.031.033.034.032.032.031.027.025.026.026.026.025.0
Pre-tax income30132821632629812426929931034234725331333218322027931571.0229
Tax rate22%21%30%24%24%19%23%23%22%17%23%23%18%19%20%23%20%15%24%23%
Net income23625915124922710020723124228526619525827014617022426754.0176
Net margin24%25%15%25%21%9%20%22%22%27%28%21%24%26%16%18%22%25%6%19%
Diluted EPS$0.49$0.54$0.31$0.52$0.47$0.21$0.43$0.48$0.50$0.60$0.56$0.41$0.55$0.57$0.31$0.36$0.47$0.58$0.12$0.38
Operating cash flow15034825317314394.023038.059.026528517.0112317152160132417291173
Capital expenditure19.029.076.033.028.055.067.049.030.069.080.041.031.045.050.031.025.025.026.012.0
Free cash flow13131917714011539.0163-11.029.0196205-24.081.0272102129107392265161
Buybacksn/an/an/an/an/a0.0n/an/an/a358n/an/an/a0.0n/an/an/a301n/an/a
Dividends paid86.056990.090.090.099.099.099.098.0103104103103107107107107107106106
Shares outstandingn/an/a479mn/an/an/a479mn/an/an/a473mn/a473m473m473m473m463m459m459m459m
Filing10-Q10-Q10-K10-Q10-Q10-Q10-K10-Q10-Q10-Q10-K10-Q10-Q10-Q10-K10-Q10-Q10-Q10-K10-Q
Each quarter as filed, linked to its filing.
Read more* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. A fourth quarter's EPS, and its diluted share count where shown, are from the company's results press release for that quarter, checked against the company's filed figures or a second data source. A quarter marked † is shown as the company last restated it in a later filing, so it compares with the quarters around it on one basis; rest on a figure for the one first filed. EPS is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

10-Q for the period ended 31 October 2025, filed 4 December 2025: the filing.