Global Spirits Giant Diageo Lowers Outlook As Stock Drops

Shares of Diageo fell 8% on Wednesday after the world’s largest spirits producer cut its dividend and lowered its 2026 profit outlook, citing weaker demand in North America and China.

The company reported a 4% drop in net sales to $10.5 billion for the six months ended December, while operating profit slipped 1.2% to $3.1 billion. Diageo said pressure on U.S. consumer spending weighed on spirits sales and warned of further weakness next year. It cut its dividend to 20 cents per share.

Diageo interim results#DGE #lse #FMCG https://t.co/XMj3diKZg3

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European markets were broadly higher after President Donald Trump implemented a universal 10% tariff, lower than previously threatened. The Stoxx 600 rose 0.5%.

Elsewhere, Aston Martin said it will cut 20% of its workforce in 2026 as U.S. and China tariffs hurt earnings. The automaker reported a sharp revenue decline and widening losses.

Investors continued to assess the global impact of Trump’s trade policies, following his claim that tariffs could eventually replace income taxes.

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tippinsightsTIPP Staff