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Diageo Holds Guidance, Shares Climb

Diageo reported 1.4% organic sales growth in the first quarter and left its full-year guidance unchanged. The shares rose above their 2026 closing high, even as North America stayed weak.

Diageo (LON: DGE), the maker of Johnnie Walker, Guinness and Smirnoff, left its full-year guidance unchanged in a first-quarter update this morning, and its shares rose after the statement. The release, headlined “In line with our expectations”, covers the quarter to the 30th of September.

The shares opened at 1,860p and were at 1,897p by 8:14am on a delayed quote, up 83p or 4.58% on yesterday’s close of 1,814p. The day’s range so far is 1,856p to 1,908p. That is above the previous 2026 closing high of 1,874p, set on the 24th of February.

DGE.LSE

Net sales were $4,931m, against $4,875m a year earlier, up 1.2% as reported and 1.4% organically (stripping out currency, acquisitions and disposals). Excluding EABL, the business being sold to Asahi, organic growth was 0.6%. Latin America, Asia Pacific, EMEA and India all grew. North America did not.

Chief executive Sir Dave Lewis addressed the weak region directly.

In North America, we continue to focus on making our offer more competitive, and whilst this remains our biggest challenge, clear actions are underway.

Sir Dave Lewis, chief executive of Diageo

North America, 36% of net sales, fell 3.6% organically on a 3.7% volume drop. Don Julio, Casamigos and Crown Royal each declined by double digits, and a packaging quality issue hurt Casamigos ready-to-drink products.

RegionShare of net salesOrganic net salesVolume
North America36%-3.6%-3.7%
EMEA26%+2.4%+4.4%
Asia Pacific12%+4.1%+6.2%
Latin America & Caribbean12%+4.8%+7.0%
India7%+3.4%-5.8%

Guidance for the 2027 financial year is unchanged from the capital markets day: broadly flat organic net sales, North America down by a mid-single-digit percentage, and organic operating profit up low-to-mid single digit. Free cash flow is put at about $2bn, against $3.2bn in the 2026 financial year, after about $850m of exceptional costs.

Line chart of Diageo share price in pence from August to November 2026, jumping on 5 November after the Q1 trading statement
Diageo shares at about 1,897p on a delayed intraday quote at 08:14 GMT on 5 November, above the 1,874p closing high set on 24 February. Source: EODHD.

The shares are up 18.3% this year, excluding dividends, from 1,603.5p at the end of 2025, and have risen from 1,575.5p in early October. Lewis described the quarter as “a small step in the right direction”. Management hosts a presentation and question-and-answer session at 9:30am today.

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