Diageo reported flat organic net sales in Q1 of fiscal 2026 with volume growth offset by negative price/mix impacts from U.S. spirits softness and sharp declines in Chinese white spirits.

Europe delivered strong momentum via Guinness and favorable pricing in Türkiye while Latin America, Caribbean and Africa showed positive price/mix trends, partly offsetting declines in North America driven by U.S. consumption weakness and Asia Pacific headwinds from reduced baijiu demand and beer route-to-market disruptions.

Shares have risen 9.1% over three months and the stock trades at a forward 12-month P/E of 14.9x versus the industry average of 16.9x, ahead of its Feb. 25 H1 fiscal 2026 results which management expects to be weighted toward stronger second-half performance.