AI Takeaway
Brown-Forman (BF.B) delivered modest Q3 FY2026 revenue growth of 2.0% to $1.056B, with operating income surging 21.4% to $340M driven by flat cost of revenue and disciplined cost management, though net income dipped slightly to $267M.
Revenue
$1.06B
++2.03% YoY
EPS (Basic)
$0.58
++1.75% YoY
Gross Margin
60.6%
++0.80% YoY
Operating Income
$340M
++21.43% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Revenue grew 2.0% year-over-year to $1.056B in Q3 FY2026, compared to $1.035B in the prior-year period, reflecting a measured demand environment for Brown-Forman's spirits portfolio.
Source: Source: 10-Q Income Statement
Gross profit rose 3.4% to $640M, with gross margin improving approximately 80 basis points to 60.6% from 59.8%, as cost of revenue remained flat at $416M year-over-year, indicating favorable input cost dynamics.
Source: Source: 10-Q Income Statement
Operating income jumped 21.4% to $340M, pushing operating margin to 32.2% from 27.1% — a 510 basis point improvement — suggesting meaningful operating leverage and/or reduced operating expenses beyond cost of revenue.
Source: Source: 10-Q Income Statement
2 more insights available
Upgrade to unlockCurrent liabilities increased 24.7% year-over-year to $1.530B, while cash and equivalents declined 36.1% to $383M. Although the current ratio remains healthy at 2.77, the rapid build-up in short-term obligations warrants monitoring.
Source: Source: 10-Q Balance Sheet
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $0.58 versus the $0.47 analyst consensus — a +22.6% beat for Q3 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $1.06B | $1.03B | +2.03% |
Cost of Revenue | $416M | $416M | 0.00% |
Gross Profit | $640M | $619M | +3.39% |
Operating Income | $340M | $280M | +21.43% |
Net Income | $267M | $270M | -1.11% |
EPS (Basic) | $0.58 | $0.57 | +1.75% |
EPS (Diluted) | $0.58 | $0.57 | +1.75% |
SG&A Expense | $184M | $178M | +3.37% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $8.3B | $8.07B | +2.86% |
Current Assets | $4.23B | $4.28B | -1.05% |
Total Liabilities | $4.22B | $4.25B | -0.66% |
Current Liabilities | $1.53B | $1.23B | +24.69% |
Stockholders' Equity | $4.08B | $3.82B | +6.77% |
Cash & Equivalents | $383M | $599M | -36.06% |
Long-Term Debt | $2.44B | $2.66B | -8.12% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash FlowYTD | $709M | $446M | +58.97% |
Investing Cash FlowYTD | $-48M | $284M | -116.90% |
Financing Cash FlowYTD | $-737M | $-546M | -34.98% |
Share BuybacksYTD | $400M | $0 | — |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 60.6% | 59.8% | +0.80% |
Operating Margin | 32.2% | 27.1% | +5.14% |
Net Margin | 25.3% | — | — |
ROE | 6.5% | — | — |
ROA | 3.2% | — | — |
Current Ratio | $2.767 | — | — |
Debt to Equity | $1.034 | — | — |
Other companies in Distillers & Vintners
Brown-Forman reported Q3 FY2026 revenue of $1.056B (+2.0% YoY) and operating income of $340M (+21.4% YoY), with gross margin expanding to 60.6%. Net income was slightly lower at $267M (-1.1%) and EPS came in at $0.58, up from $0.57 a year ago.
Brown-Forman's revenue grew 2.0% year-over-year to $1.056B in Q3 FY2026, up from $1.035B in the prior-year quarter. Growth was modest, reflecting a measured demand environment for premium spirits.
Operating income surged 21.4% to $340M in Q3 FY2026, driven by flat cost of revenue at $416M and controlled SG&A expenses, which together expanded operating margin by approximately 510 basis points to 32.2%. This indicates strong operating leverage on modest revenue growth.
Brown-Forman maintains a solid balance sheet with a current ratio of 2.77 and stockholders' equity of $4.082B, though cash declined 36.1% to $383M partly due to $400M in share buybacks. Long-term debt of $2.445B gives a debt-to-equity ratio of 1.03x, reflecting moderate leverage.
Yes, Brown-Forman repurchased $400M in shares on a fiscal year-to-date basis through Q3 FY2026, compared to zero in the same period of the prior fiscal year. This significant buyback activity contributed to the decline in cash and equivalents from $599M to $383M.