---
title: "Smirnoff, Guinness Parent Diageo Stock Crashes On Soft US Demand, China Weakness"
type: "News"
locale: "zh-CN"
url: "https://longbridge.com/zh-CN/news/276921528.md"
description: "Diageo Plc's stock has dropped 13.60% to $88.21 following disappointing H1 FY26 earnings, which reported net sales of $10.5 billion, below expectations of $11.11 billion. The company has revised its FY26 guidance, anticipating a 2%-3% decline in organic net sales due to weak demand in the U.S. and China. Operating profit decreased by 1.2%, and adjusted EPS of 95 cents fell short of the expected 96 cents. Diageo's cost savings program is on track, with free cash flow guidance maintained at $3 billion for the year."
datetime: "2026-02-25T17:35:20.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/276921528.md)
  - [en](https://longbridge.com/en/news/276921528.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/276921528.md)
---

> 支持的语言: [English](https://longbridge.com/en/news/276921528.md) | [繁體中文](https://longbridge.com/zh-HK/news/276921528.md)


# Smirnoff, Guinness Parent Diageo Stock Crashes On Soft US Demand, China Weakness

Alcohol beverage company **Diageo Plc** (NYSE:DEO) shares are tumbling on Wednesday after it released worse-than-expected H1 FY26 results and provided weak FY26 guidance.

**• Diageo shares are retreating from recent levels. What’s weighing on DEO shares?**

## **Earnings Snapshot**

The company, which owns Smirnoff, Guinness, Tanqueray, among others, reported net sales of $10.5 billion, missing the street view of $11.11 billion for the half year ended December 2025.

Net sales declined 4% primarily due to an organic net sales decline of 2.8% and the unfavorable impact of asset disposal.

Organic net sales were impacted by an organic volume decline of 0.9% and an unfavourable price/mix of 1.9%.

” Strong performance in Europe, LAC and Africa, was offset by a weakening performance in NAM and continued weakness in Chinese white spirits in APAC,” said CEO **Sir Dave Lewis.** “U.S. Spirits performance reflected pressure on disposable income, and competitive pressure from more affordable alternatives addressing a more stretched consumer wallet.”

The company's operating profit also decreased by 1.2%, with its operating profit margin expanding 85bps on the positive impact of disposals.

Adjusted EPS of 95 cents, down 2.5%, missed the street view of 96 cents.

Operating cash flow stood at $2.1 billion, and free cash flow came in at $1.5 billion. As of Dec. 31, net debt stood at $21.7 billion.

The company said that its cost savings program is progressing well and now expects around 50% of accelerated savings in FY26.

## **Outlook**

For FY26, given further weakness in the first half in the U.S., the company now expects organic net sales to decline 2%-3% (vs. flat to slightly down expected earlier), including the impact of Chinese white spirits (CWS).

Also, organic operating profit growth is anticipated to be flat to up low single-digit (vs. low to mid-single digit prior), including the revised organic net sales guidance and the impact of tariffs.

The company reiterated free cash flow guidance at $3 billion for the year.

**DEO Price Action**: Diageo shares are trading lower 13.60% at $88.21 at publication on Wednesday.

_Photo: Evgeniyqw via Shutterstock_

### 相关股票

- [Diageo (DEO.US)](https://longbridge.com/zh-CN/quote/DEO.US.md)
- [Diageo plc (DGE.UK)](https://longbridge.com/zh-CN/quote/DGE.UK.md)

## 相关资讯与研究

- [Diageo gains after Deutsche Bank calls out long-term upside](https://longbridge.com/zh-CN/news/281180693.md)
- [Interesting DEO Put And Call Options For January 2028](https://longbridge.com/zh-CN/news/281207376.md)
- [Energy Transfer stock is up big in 2026. Is there still time to get in?](https://longbridge.com/zh-CN/news/281629741.md)
- [Individual investors could get a rare shot at buying into SpaceX from day one](https://longbridge.com/zh-CN/news/281225223.md)
- [CROWN ROYAL TEAMS UP WITH ROB RAUSCH TO LAUNCH FIRST-EVER CAMO BAG & CAPSULE COLLECTION IN PARTNERSHIP WITH REALTREE | DEO Stock News](https://longbridge.com/zh-CN/news/281538125.md)