Brown-Forman

Q1 FY2027 EarningsFY27 Q1 results missed consensus on the top line but beat on profitability. Net sales of $911M (-1% YoY) fell slightly short of the $915M expectation, primarily due to the termination of the Korbel relationship and tequila volume declines. However, gross margin expanded to 60.2% (vs. 58.6% expected) and diluted EPS of $0.38 rose 6% YoY, benefiting from lower input costs and share repurchases. Management reaffirmed FY27 guidance of flat organic net sales and a 3-5% decline in organic operating income, signaling a cautious outlook amid macroeconomic pressures.