Brown-Forman Net Income Slides 9% to $661M in Nine-Month Period

Brown-Forman Corporation (NYSE: BF.B), a spirits and wine producer, reported net income of $661 million for the nine months ending January 31, 2026, down from $723 million in the prior-year period. Diluted earnings per share slipped to $1.41 from $1.53. Read more earnings reports.

Revenue for the nine-month period fell 2% to $3.02 billion from $3.08 billion. The company recorded operating income of $905 million, virtually flat compared to $902 million a year earlier.

For the third quarter ending January 31, 2026, Brown-Forman posted net income of $267 million, down marginally from $270 million in the same quarter last year. Quarterly revenue rose 2% to $1.06 billion from $1.04 billion.

Improved Margins and Cost Control

Gross profit for the nine-month period totaled $1.81 billion, down from $1.83 billion in the prior year. Cost of goods sold declined to $1.21 billion from $1.25 billion, while selling, general and administrative expenses edged down to $548 million from $551 million.

The company reduced interest expense to $77 million for the nine months from $95 million in the comparable period. Income tax expense fell to $153 million from $175 million.

Balance Sheet and Cash Position

Total assets stood at $8.30 billion as of January 31, 2026, up from $8.09 billion at the end of April 2025. Cash and cash equivalents declined to $383 million from $444 million at the prior fiscal year-end.

Long-term debt decreased to $2.09 billion from $2.42 billion. Total stockholders' equity rose to $4.08 billion from $3.99 billion at April 30, 2025.

Cash from operations surged 59% to $709 million for the nine months from $446 million in the prior-year period. Cash used in financing activities increased to $737 million from $546 million, while cash used in investing was $48 million compared to cash provided by investing of $284 million a year earlier.

Working Capital Metrics

Accounts receivable rose to $983 million from $830 million at April 30, 2025. Inventory increased modestly to $2.56 billion from $2.51 billion. Current liabilities jumped to $1.53 billion from $1.08 billion.

Retained earnings climbed to $5.05 billion as of January 31, 2026, from $4.71 billion at the prior fiscal year-end. The company had 290.3 million shares outstanding.