Diageo: Outlook Confirmed - We Remain Buyers

  • Diageo's management is focused on margin control, cost savings, and positive operating leverage, targeting $3 billion free cash flow in 2026 and lower leverage by 2028. US tariffs are manageable, with mitigation strategies in place. Europe is performing well, and supply chain optimizations support future EPS growth. DEO announced a $500 million cost savings plan over the next three years.