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's first quarter of fiscal 2027 was defined by a modest sales decline paired with higher earnings per share. Net sales fell as unfavorable price/mix and the end of the Korbel relationship outweighed volume growth, favorable foreign exchange, and the JDCC transition. Gross margin improved, but higher SG&A expenses pushed operating income lower; diluted EPS nevertheless rose 6% to $0.38, helped by a steep drop in non-operating postretirement expense and the prior year's buybacks. The key tension is that non-operating items and cost discipline are supporting earnings while core brand volumes remain uneven.
Revenue
$911M
-1.41% YoY
EPS (Diluted)
$0.38
+5.56% YoY
Gross Margin
60.3%
+0.5 pts YoY
Operating Income
$252M
-3.08% YoY
Source: SEC XBRL
Brown Forman (BF.B) reported Q1 FY2027 revenue of $911M, down 1.4% year over year. Operating margin was 27.7%, down 0.4 points from 28.1% a year earlier. Operating cash flow was $173M, up 8.1% year over year. BF.B's fiscal Q1 FY2027 corresponds to calendar Q3 2026.
Last 4 quarters: 2 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Sep 2026 | 0.38 | 0.38 | Beat +1.2% |
| Jun 2026 | 0.12 | 0.33 | Miss -63.5% |
| Mar 2026 | 0.58 | 0.47 | Beat +22.6% |
| Dec 2025 | 0.47 | 0.48 | Miss -2.8% |
Compiled by AI from 10-Q Item 2 of this filing
Net sales were $911 million, down 1% from the prior-year period, driven by unfavorable price/mix and the end of the Korbel relationship, partially offset by higher volumes, favorable foreign exchange, and the impact of the JDCC transition.
Source: 10-Q Item 2 MD&A
Gross profit decreased 1% to $549 million, but gross margin increased 0.4 percentage points to 60.2%, driven by lower costs and the end of the Korbel relationship, partially offset by foreign exchange and unfavorable price/mix.
Source: 10-Q Item 2 MD&A
Operating income declined 3% to $252 million, and operating margin narrowed 0.5 percentage points to 27.7%, as higher operating expenses, particularly a 4% increase in SG&A, more than offset gross margin expansion.
Source: 10-Q Item 2 MD&A
Diluted EPS rose to $0.38 from $0.36, driven by lower non-operating postretirement expense and the accretive impact of share repurchases executed in the prior year, partially offset by the decrease in operating income.
Source: 10-Q Item 2 MD&A
Management expects organic net sales to be approximately flat, organic operating income to decline 3% to 5%, an effective tax rate of 20% to 22%, and capital expenditures of $60 million to $70 million.
Source: 10-Q Item 2 MD&A
Compiled by AI from this SEC filing · 0 high, 5 medium, 0 low
Revenue declined 1.4% year over year to $911 million, while operating income fell 3.1%, indicating top-line contraction and potential brand-level demand or mix weakness.
Source: 10-Q Income Statement (XBRL)
SG&A expense increased 4.5% to $185 million, contributing to a 0.5 percentage-point decline in operating margin. Continued expense growth could further pressure profitability if revenue remains soft.
Source: 10-Q Income Statement (XBRL)
Cash and cash equivalents fell 36.1% year over year to $301 million, reducing the company's immediate liquidity buffer despite a still-strong current ratio.
Source: 10-Q Balance Sheet (XBRL)
Long-term debt was $2.083 billion, down 13.9% from a year earlier, but the debt-to-equity ratio of 0.97 indicates debt still roughly matches equity, which may amplify earnings volatility.
Source: 10-Q Balance Sheet (XBRL)
Financing activities used $164 million in Q1 FY2027, up from $138 million a year earlier, including repayment of maturing senior notes. This reliance on operating cash flow and short-term borrowings could pressure financial flexibility.
Source: 10-Q Cash Flow Statement (XBRL)
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $M | 911.00 $M | 924.00 $M | -1.41% |
Cost of Revenue $M | 362.00 $M | 372.00 $M | -2.69% |
Gross Profit $M | 549.00 $M | 552.00 $M | -0.54% |
Operating Income $M | 252.00 $M | 260.00 $M | -3.08% |
Net Income $M | 176.00 $M | 170.00 $M | +3.53% |
EPS (Basic) $ | 0.38 $ | 0.36 $ | +5.56% |
EPS (Diluted) $ | 0.38 $ | 0.36 $ | +5.56% |
SG&A Expense $M | 185.00 $M | 177.00 $M | +4.52% |
Answers draw on this SEC filing and the data on this page
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.
Brown-Forman (BF.B) reported a challenging fiscal year 2026 with revenue declining 1.2% to $3.93B and net income falling 17.7% to $715M, though operating cash flow surged 67.2% to $1.0B and gross margins improved to 60.5%.
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