Brown-Forman reported QQ1 2026 revenue of USD 924.0 million, down 2.84% year over year but up 3.36% quarter over quarter, reflecting a modest top-line pullback versus the prior-year period with some quarterly seasonality. Gross margin stood at 59.74% and operating margin at 28.14%, underscoring the durability of pricing power and a highly cash-generative business model in the premium beverages segment. Net income reached USD 170.0 million, translating to a net margin of 18.40% and earnings per share (EPS) of USD 0.36, with YoY declines primarily a function of base effects and mix rather than deteriorating core profitability.
The company generated USD 160.0 million in cash from operations and USD 129.0 million of free cash flow in the quarter, enabling USD 107.0 million in dividends paid and contributing to a net debt position of roughly USD 2.23 billion. Brown-Forman maintains a strong liquidity profile (cash and cash equivalents of USD 471.0 million, current ratio 2.79) and a disciplined capital structure (total debt USD 2.701 billion; debt-to-capitalization about 40.4%). The dividend payout remains sizable at 62.9% of earnings, supported by solid cash generation and ongoing brand strength in a premium, consumer-defensive category.
Looking ahead, management commentary (where available in the provided data) and the QoQ acceleration in profitability suggest continued operating leverage and mix benefits from core portfolios. The absence of explicit full-year guidance in the input data means readers should anchor expectations to medium-term fundamentals: stable gross margins, disciplined SG&A, and continued free cash flow generation that sustains the dividend and supports selective deleveraging or strategic investments as conditions allow.