BF-B BROWN FORMAN CORP

BEARISH Impact: 7/10 8-K
Horizon weeks Filed Jun 4, 2026 Processed 7d 22h ago SEC 0000014693-26-000018
8-K Item 2.02: Earnings release
Latest settled — T+1d ⚠ clustered
BF-B ▲ +2.75% at T+1d
SHORT call ✗ call lost -2.75% · α vs SPY -5.32% · entry $25.46 → $26.16
Next anchor: T+5d due yesterday
Currently $27.01 · -6.09% from $25.46 entry (call sign-flipped)
Entry anchored
Jun 4, 2026
via day open
T+1d
+2.75%
call -2.75% · α -5.32%
$26.16
settled 8d ago
T+5d
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call — · α —
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due yesterday
T+20d
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T+60d
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Executive Summary

Brown-Forman reported Q4 FY2026 EPS of $0.12, a 68.2% miss vs consensus of $0.38, and revenue of $912M slightly below the $919.4M estimate. Full-year revenue declined 1% to $3.9B and EPS fell 17% to $1.53, with operating income down 10% driven by $132M in impairment charges and elevated SG&A from 'contemplated business transaction discussions.' Guidance for FY2027 calls for organic net sales to be approximately flat and organic operating income to decline 3-5%, signaling continued pressure on profitability.

Key Financial Metrics

Guidance
approximately flat organic net sales
maintained
Free Cash Flow
$893.0M
Gross Margin
62.6%

Actionable Insight

The massive EPS miss and weak FY2027 guidance (flat sales, declining operating income) point to continued margin compression from restructuring costs, impairment charges, and elevated SG&A. The mention of 'contemplated business transaction discussions' introduces M&A uncertainty. Monitor for potential deal announcements or further restructuring actions that could clarify the path to margin recovery.

Key Facts

  • Q4 EPS of $0.12 missed consensus of $0.38 by 68.2%
  • Q4 revenue of $912M slightly below $919.4M estimate, up 2% YoY
  • Full-year revenue declined 1% to $3.9B; EPS fell 17% to $1.53
  • Operating income decreased 53% in Q4 and 10% for the full year
  • Non-cash impairment charges of $132M on Gin Mare and Diplomático brand names
  • SG&A expenses rose 34% in Q4, partly due to 'contemplated business transaction discussions'
  • FY2027 guidance: organic net sales approximately flat; organic operating income decline of 3-5%
  • Cash flow from operations grew $402M to $1.0B; free cash flow increased $462M to $893M
  • Company returned $827M to shareholders via dividends ($427M) and buybacks ($400M)

Financial Impact

Q4 EPS miss of $0.26 vs consensus; full-year EPS decline of $0.31; $132M in impairment charges

epsrevenueoperating incomesg&aimpairment charges

Risk Factors

  • Continued decline in Jack Daniel's Tennessee Whiskey volumes (-3% shipments)
  • Tariff and trade policy risks given global exposure
  • Elevated SG&A from potential M&A activity
  • Impairment risk on remaining intangible assets ($943M)
  • Weak guidance implies no near-term earnings recovery

Market Snapshot

Exchange
NYSE
Sector
Beverages

Documents Analyzed

This report is based on 6 SEC documents filed with EDGAR.

DocumentAccession Number
8-K Filing (Primary)0000014693-26-000018
Document: bfb-20260604.htm0000014693-26-000018
Document: 0000014693-26-000018-index-headers.html0000014693-26-000018
Document: 0000014693-26-000018-index.html0000014693-26-000018
Document: 0000014693-26-000018.txt0000014693-26-000018
8-K Data (Synthetic)0000014693-26-000018

US Market Status

Market Closed — Opens Mon (53h 12m)

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