Diageo reported net sales of $10.5 billion for the six months ended Dec. 31, 2025, down 4% year-over-year due to softer organic volumes and disposals. Pre-exceptional earnings per share declined 2.5% to $0.953, while free cash flow reached $1.5 billion and net cash from operations totaled $2.1 billion.

Organic net sales dipped 2.8%, driven by a 0.9% volume decline and a 1.9% negative price/mix. Europe, Latin America & Caribbean and Africa delivered robust growth, but North America suffered from consumer income pressures and Asia Pacific was weighed down by Chinese white spirits headwinds.

The company declared a $0.20 interim dividend and plans to increase shareholder distributions targeting a 30–50% payout ratio. A pending divestment of its 65% stake in East African Breweries and Kenyan spirits business is expected to yield $2.3 billion in net proceeds, while cost-savings programs are on track to boost margins.