LOUISVILLE, KY — Brown‑Forman Corporation (NYSE: BFA, BFB) reported financial results for its third quarter and nine months ended January 31, 2026. Third quarter reported net sales increased 2%¹ to $1.1 billion (+1% on an organic basis²) compared to the same prior-year period. In the quarter, reported operating income increased 21% to $340 million (flat on an organic basis) and diluted earnings per share increased 1% to $0.58.

For the nine months of the fiscal year, the company’s reported net sales decreased 2% to $3.0 billion (flat on an organic basis) compared to the same prior-year period. Year-to-date reported operating income was flat at $905 million (-3% on an organic basis) and diluted earnings per share decreased 8% to $1.41.

“I am pleased that our performance remains consistent with our fiscal year expectations, even as we navigate a challenging operating environment.” said President and Chief Executive Officer Lawson Whiting. “Our team’s resilience, along with our strong balance sheet and healthy free cash flow, continue to be sources of strength, and allow us to reiterate our full-year guidance.”

Year-to-Date Fiscal 2026 Highlights

• Net sales decline largely driven by the end of the Korbel Champagne Cellars relationship (Korbel relationship) and the absence of the Sonoma‑Cutrer prior-year transition services agreement (TSA).
• From a geographic perspective, net sales growth in Emerging³ markets and the Travel Retail³ channel was more than offset by declines in the United States and Developed International³ markets.
• Gross margin expanded 50 basis points primarily driven by the positive effect of acquisitions and divestitures, partially offset by higher costs.
• The $400 million share repurchase program was completed in December 2025.
• Cash flows from operations grew by $263 million to $709 million and free cash flow2 increased by $299 million to $628 million.

Year-to-Date Fiscal 2026 Brand Results

• Net sales for Whiskey³ products increased 2% (+1% organic) led by innovation. The launch of Jack Daniel’s Tennessee Blackberry, the positive effect of foreign exchange, and the growth of Jack Daniel’s Tennessee Apple in Brazil were partially offset by declines of Jack Daniel’s Tennessee Whiskey and Jack Daniel’s Tennessee Honey.
• Net sales for the Tequila3 portfolio decreased 6% (-7% organic). Herradura’s net sales declined 11% (-12% organic) led by lower volumes in the United States as the tequila category remains competitive. el Jimador’s net sales decreased 3% (-4% organic) driven by declines in the United States and Mexico, partially offset by higher volumes in Colombia.
• Net sales for the Ready-to-Drink3 (RTD) portfolio increased 8% (+6% organic). Net sales of New Mix increased 37% (+34% organic) fueled by market share gains in Mexico within an accelerating category and the product’s launch in the United States. Jack Daniel’s RTD/RTP portfolio declined 3% (-5% organic) driven by the absence of American-made beverage alcohol from retail shelves across most provinces in Canada, lower volumes in the United States, and lower net pricing in Germany.
• Rest of Portfolio's³ net sales declined 34% (+16% organic) driven by the unfavorable impact of acquisitions and divestitures, partially offset by the distribution of new agency brands in Japan and Mexico, as well as strong double-digit growth of Gin Mare and Diplomático.
• Net sales for non-branded and bulk decreased 64% (-64% organic) driven by lower used barrel sales.

Year-to-Date Fiscal 2026 Market Results

• Net sales in the United States declined 8% (-1% organic) led by the end of the Korbel relationship and the absence of the Sonoma‑Cutrer prior-year TSA, as well as lower volumes, led by Jack Daniel’s Tennessee Whiskey. The decline was partially offset by innovation, led by Jack Daniel’s Tennessee Blackberry, the higher net pricing across the portfolio as a result of changes to our distributor relationship terms, and higher volumes of Woodford Reserve due to timing of distributor ordering patterns in our transition markets.
• In a challenging economic environment, net sales in the Developed International markets declined 2% (-6% organic), though improved sequentially. The decrease was primarily driven by the absence of American-made beverage alcohol from retail shelves in most of the Canadian provinces and declines in Germany and the United Kingdom, partially offset by the positive effect of foreign exchange and the benefit from the transition to owned distribution in Italy.
• Net sales in Emerging markets increased 16% (+15% organic) led by strong double-digit growth of New Mix in Mexico, an estimated net increase in distributor inventories, and growth across the Jack Daniel’s family of brands led by Brazil and Türkiye.
• The Travel Retail channel’s net sales increased 9% (+7% organic) due to increased passenger traffic leading to higher volumes of Jack Daniel’s Tennessee Whiskey and the positive effect of foreign exchange.

Year-to-Date Fiscal 2026 Other P&L Items

• Gross profit decreased 1% (-2% organic). Gross margin expanded 50 basis points to 59.9% driven by the positive effect of acquisitions and divestitures and the positive effect of foreign exchange, partially offset by higher costs and unfavorable price/mix.
• Advertising expense decreased 3% (-2% organic) as the investment behind the launch of Jack Daniel’s Tennessee Blackberry and the negative effect of foreign exchange were more than offset by the absence of the Korbel brands and lower spend across the other super-premium Jack Daniel’s expressions, Jack Daniel’s Tennessee Apple, and Jack Daniel’s Tennessee Honey.
• Selling, general, and administrative (SG&A) expenses decreased 1% (-2% organic) driven by lower compensation-and-benefit-related expenses following our restructuring initiative, partially offset by the negative effect of foreign exchange.
• The company incurred $19 million in charges related to the strategic restructuring initiative announced in January 2025.
• Operating income was flat (-3% organic) resulting in an operating margin increase of 70 basis points to 30.0%. The operating margin increase was led by the benefit of the substitution drawback claims2 and the impact of lower restructuring initiative costs, SG&A, and advertising expenses, partially offset by the decline in gross profit.
• Diluted earnings per share decreased $0.12 largely driven by the absence of the prior-year gain on sale of our investment in The Duckhorn Portfolio, Inc.

Year-to-Date Fiscal 2026 Financial Stewardship

On February 18, 2026, the Brown‑Forman Board of Directors declared a regular cash dividend of $0.2310 per share on its Class A and Class B Common Stock. The dividend is payable on April 1, 2026, to stockholders of record on March 9, 2026. Brown‑Forman, a member of the S&P 500 Dividend Aristocrats Index, has paid regular quarterly cash dividends for 82 consecutive years and has increased the regular dividend for 42 consecutive years.

As announced on October 2, 2025, the Brown‑Forman Board of Directors authorized the repurchase of $400 million (exclusive of brokerage fees and excise taxes) of outstanding shares of Class A and Class B common stock from October 1, 2025, through October 1, 2026, subject to market and other conditions. As of December 2025, the program was completed.

In addition, cash flows from operations grew $263 million to $709 million, primarily reflecting disciplined working capital management and free cash flow increased $299 million to $628 million, reflecting strong operating cash flow generation and lower capital expenditure needs.

Fiscal 2026 Outlook

We continue to anticipate the operating environment for fiscal 2026 to be challenging, with low visibility due to macroeconomic and geopolitical volatility as we face headwinds from consumer uncertainty and lower non-branded sales of used barrels. We remain focused on building our business for the long term and navigating the current environment at pace with strategic initiatives in fiscal 2026 that we believe will unlock future growth led by the significant evolution of our U.S. distribution, the restructuring initiative, and meaningful new product innovation.

Accordingly, we reiterate the following expectation for fiscal 2026:

• Organic net sales decline in the low-single digit range.
• Organic operating income decline in the low-single digit range.
• Capital expenditures planned to be in the range of $110 to $120 million.

The forecasted effective tax rate range has been updated to approximately 19% to 21% from 21% to 23%.

​Click here for the full financial results.

Conference Call Details
Brown‑Forman will host a conference call to discuss these results at 10:00 a.m. (ET) today. A live audio broadcast of the conference call, and the accompanying presentation slides, will be available via

Brown‑Forman’s website, brown-forman.com, through a link to “Investors/Events & Presentations.” A digital audio recording of the conference call and the presentation slides will also be posted on the website and will be available for at least 30 days following the conference call.

Brown‑Forman Corporation is a global leader in the spirits industry, responsibly building exceptional beverage alcohol brands for more than 155 years. Headquartered in Louisville, Kentucky, we are guided by our founding promise, “Nothing Better in the Market.” Our premium portfolio includes the Jack Daniel’s Family of Brands, Woodford Reserve, Old Forester, New Mix, el Jimador, Herradura, The Glendronach, Glenglassaugh, Benriach, Diplomático Rum, Gin Mare, Fords Gin, Chambord, and Slane. With approximately 5,000 employees worldwide, we proudly share our passion for fine-quality spirits in more than 170 countries. Learn more at brown-forman.com and stay connected with us on LinkedIn, Instagram, and X.

Contacts:
Elizabeth Conway, Director, External Communications
Elizabeth_Conway@b-f.com

Sue Perram, Vice President, Director, Investor Relations
Sue_Perram@b-f.com

Important Information on Forward-Looking Statements:

This press release contains statements, estimates, and projections that are “forward-looking statements” as defined under U.S. federal securities laws. Words such as “aim,” “ambition,” “anticipate,” “aspire,” “believe,” “can,” “continue,” “could,” “envision,” “estimate,” “expect,” “expectation,” “intend,” “may,” “might,” “plan,” “potential,” “project,” “pursue,” “see,” “seek,” “should,” “will,” “would,” and similar words indicate forward-looking statements, which speak only as of the date we make them. Except as required by law, we do not intend to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise. By their nature, forward-looking statements involve risks, uncertainties, and other factors (many beyond our control) that could cause our actual results to differ materially from those expressed in or implied by the forward-looking statements. These risks and uncertainties include, but are not limited to:

• Our substantial dependence upon the continued growth of the Jack Daniel’s family of brands
• Substantial competition from new entrants, consolidations by competitors and retailers, and other competitive activities, such as pricing actions (including price reductions, promotions, discounting, couponing, or free goods), marketing, category expansion, product introductions, or entry or expansion in our geographic markets or distribution networks
• Disruption of our distribution network or inventory fluctuations in our products by distributors, wholesalers, or retailers
• Risks from changes to the trade policies, tariffs and import and export regulations of the U.S. or foreign governments and the effectiveness of our actions to mitigate the negative impact on our margins, sales, and/or distributors
• Changes in consumer preferences, consumption, or purchase patterns – particularly away from larger producers in favor of small distilleries or local producers, or away from brown spirits, our premium products, or spirits generally, and our ability to anticipate or react to them; further legalization of cannabis, hemp-derived products or other similar products; bar, restaurant, travel, or other on-premise declines; shifts in demographic or health and wellness trends; or unfavorable consumer reaction to new products, line extensions, package changes, product reformulations, or other product innovation
• Route-to-consumer changes that affect the timing of our sales, temporarily disrupt the marketing or sale of our products, or result in higher fixed costs
• Production facility, aging warehouse, or supply chain disruption
• Imprecision in supply/demand forecasting
• Higher costs, lower quality, or unavailability of energy, water, raw materials, product ingredients, or labor
• Risks associated with acquisitions, dispositions, business partnerships, or investments – such as acquisition integration, termination difficulties or costs, or impairment in recorded value
• Unfavorable global or regional economic conditions and related economic slowdowns or recessions, low consumer confidence, high unemployment, weak credit or capital markets, budget deficits, burdensome government debt, austerity measures, higher interest rates, higher taxes, political instability, higher inflation, deflation, lower returns on pension assets, or lower discount rates for pension obligations
• Impact of health epidemics and pandemics, and the risk of the resulting negative economic impacts and related governmental actions
• Product recalls or other product liability claims, product tampering, contamination, or quality issues
• Negative publicity related to our company, products, brands, marketing, executive leadership, employees, Board of Directors, family stockholders, operations, business performance, or prospects
• Failure to attract or retain key executive or employee talent
• Risks associated with being a U.S.-based company with a global business, including commercial, political, and financial risks; local labor policies and conditions; compliance with local trade practices and other regulations; terrorism, kidnapping, extortion, or other types of violence; and health pandemics
• Failure to comply with anti-corruption laws, trade sanctions and restrictions, or similar laws or regulations
• Fluctuations in foreign currency exchange rates, particularly due to a stronger U.S. dollar
• Changes in laws, regulatory measures, or governmental policies, especially those affecting production, importation, marketing, labeling, pricing, distribution, sale, or consumption of our beverage alcohol products
• Tax rate changes (including excise, corporate, sales or value-added taxes, property taxes, payroll taxes, import and export duties, and tariffs) or changes in related reserves, changes in tax rules or accounting standards, and the unpredictability and suddenness with which they can occur
• Decline in the social acceptability of beverage alcohol in significant markets
• Significant additional labeling or warning requirements or limitations on availability of our beverage alcohol products
• Counterfeiting and inadequate protection of our intellectual property rights
• Significant legal disputes and proceedings, or government investigations
• Cyber breach or failure or corruption of our key information technology systems or those of our suppliers, customers, or direct and indirect business partners, or failure to comply with personal data protection laws
• Our status as a family “controlled company” under New York Stock Exchange rules, and our dual-class share structure

For further information on these and other risks, please see the risks and uncertainties described in Part I, Item 1A. Risk Factors of our 2025 Form 10-K, and those described from time to time in our reports on Form 10-Q filed with the SEC.