Brown–Forman (BF.B) FY2026 10-K Annual Report

Filed: Jun 12, 2026
Consumer Staples
BeveragesSEC EDGAR

Brown–Forman (BF.B) 10-K annual report for fiscal year 2026, filed with SEC EDGAR on Jun 12, 2026. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.

Brown–Forman FY2026 10-K Analysis

Business Overview

  • Core business: Manufacture, distill, import, market, and sell premium-plus beverage alcohol globally with 40+ spirit and RTD brands including Jack Daniel’s
  • New emphasis: Expanded RTD portfolio globally; ended partnership with Pabst Brewing to self-manage Jack Daniel’s Country Cocktails from July 2026
  • Strategic shift: Major U.S. distribution network overhaul involving 25 markets and new distributors in 14 open states in FY2026
  • Quantitative: Employee count stable at ~4,900; Woodford Reserve sold 1.9 million nine-liter cases in FY2026; U.S. market 42% of net sales
  • Noteworthy: Operational anaerobic digester at Jack Daniel’s converting byproducts to renewable energy and fertilizer as part of sustainability efforts

Management Discussion & Analysis

  • Revenue $3.93B, down 1% YoY ($47M), with declines in U.S. offset by Emerging market growth and Travel Retail gains
  • Gross margin 60.5% vs 58.9% (+1.6pp); operating margin 25.5% vs 27.9% (-2.4pp) due to impairment charges and higher SG&A expenses
  • Best segment Emerging markets +20% driven by Mexico, +13% Brazil; worst Non-branded and bulk down 68% from decline in used barrel sales
  • Operating cash flow $1.0B (+$402M); Capex $107M; capital returned via $427M dividends and $400M share repurchases completed Dec 2025
  • Fiscal 2027 outlook: organic net sales flat; organic operating income down 3-5%; capital expenditures $60-70M; ongoing macroeconomic challenges

Risk Factors

  • US tariffs on Canadian imports including Jack Daniel’s, 25% tariff triggering Canadian provincial bans effective March 2025
  • Exposure to geopolitical risks from Middle East conflicts and Ukraine sanctions impacting operations in over 170 countries
  • Supply chain vulnerability from sole glass bottle supplier and oak barrel supply critical for whiskey production
  • Competitive pressure from beer, soft drink, and cannabis companies entering ready-to-drink and spirits markets
  • Credit rating downgrade review in November 2025 increasing borrowing costs and reducing capital market access

Brown–Forman FY2026 Key Financial Metrics
XBRL

Revenue

$3.9B

-1.2% YoY

Net Income

$715M

-17.7% YoY

Gross Margin

60.5%

+160bp YoY

Operating Margin

25.5%

-237bp YoY

Net Margin

18.2%

-366bp YoY

ROE

17.8%

-398bp YoY

Total Assets

$7.9B

-2.4% YoY

EPS (Diluted)

$1.53

-16.8% YoY

Operating Cash Flow

$1.0B

+67.2% YoY

Source: XBRL data from Brown–Forman FY2026 10-K filing on SEC EDGAR. All figures in USD.

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