Revenue Growth Remains Modest
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: 10-Q Income Statement
Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
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 (Diluted)
$0.58
+1.75% YoY
Gross Margin
60.6%
+0.8 pts YoY
Operating Income
$340M
+21.43% YoY
Source: SEC XBRL
Brown Forman (BF.B) reported Q3 FY2026 revenue of $1.06B, up 2.0% year over year. Operating margin was 32.2%, up 5.1 points from 27.1% a year earlier. BF.B's fiscal Q3 FY2026 corresponds to calendar Q1 2026.
Last 4 quarters: 1 beat
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 0.12 | 0.33 | Miss -63.5% |
| Mar 2026This filing | 0.58 | 0.47 | Beat +22.6% |
| Dec 2025 | 0.47 | 0.48 | Miss -2.8% |
| Sep 2025 | 0.36 | 0.37 | Miss -3.1% |
Reported EPS of $0.58 versus the $0.47 analyst consensus — a +22.6% beat for Mar 2026.
Compiled by AI from this SEC 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: 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: 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: 10-Q Income Statement
Cumulative fiscal year-to-date operating cash flow reached $709M, up 59.0% from $446M in the same prior-year period, reflecting improved cash generation from operations.
Source: 10-Q Cash Flow Statement
Brown-Forman repurchased $400M in shares on a fiscal year-to-date basis in FY2026, compared to zero in the same prior-year period, signaling management's confidence in the company's financial position and commitment to returning capital to shareholders.
Source: 10-Q Cash Flow Statement
Compiled by AI from this SEC filing · 0 high, 4 medium, 1 low
Current 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: 10-Q Balance Sheet
Cash and equivalents fell sharply from $599M to $383M, a decline of $216M or 36.1% year-over-year. This reduction is partly attributable to $400M in share buybacks and $737M in year-to-date financing outflows, which could constrain financial flexibility if business conditions deteriorate.
Source: 10-Q Balance Sheet & Cash Flow Statement
Net income fell 1.1% to $267M despite a 2.0% revenue increase and a 21.4% surge in operating income, suggesting elevated below-the-line costs such as interest expense or tax charges that offset operational gains.
Source: 10-Q Income Statement
Debt-to-equity stands at 1.03x with long-term debt of $2.445B, meaning the company carries significant financial leverage. While long-term debt declined 8.1% year-over-year, the absolute level remains substantial relative to equity of $4.082B.
Source: 10-Q Balance Sheet
Selling, general and administrative expenses rose 3.4% to $184M, outpacing revenue growth of 2.0%, which could pressure margins if this trend continues without corresponding revenue acceleration.
Source: 10-Q Income Statement
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 1.06 $B | 1.04 $B | +2.03% |
Cost of Revenue $M | 416.00 $M | 416.00 $M | 0.00% |
Gross Profit $M | 640.00 $M | 619.00 $M | +3.39% |
Operating Income $M | 340.00 $M | 280.00 $M | +21.43% |
Net Income $M | 267.00 $M | 270.00 $M | -1.11% |
EPS (Basic) $ | 0.58 $ | 0.57 $ | +1.75% |
EPS (Diluted) $ | 0.58 $ | 0.57 $ | +1.75% |
SG&A Expense $M | 184.00 $M | 178.00 $M | +3.37% |
Answers draw on this SEC filing and the data on this page
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