London, February 17, 2026, 08:59 GMT — Regular session
- Diageo shares picked up a bit in early London trading, recovering some ground after their slide on Monday.
- Investors are lining up trades ahead of next week’s half-year earnings and guidance update.
- Deal chatter is picking up again around IPL franchise valuations.
Shares of Diageo (DGE.L) edged slightly higher in early London trading Tuesday, with investors eyeing the spirits maker’s half-year earnings and potential updates on non-core assets. The stock showed a 0.06% gain, trading around 1,804 pence as of 0836 GMT, Fidelity data showed. (Fidelity International)
November brought a reset in guidance. Diageo lowered its fiscal 2026 outlook after then-interim chief executive Nik Jhangiani flagged weaker-than-anticipated U.S. demand, describing results as “unsatisfactory.” Now, the company projects 2026 sales will be flat or even down, with China revenue down in the double digits and U.S. sales off 4.1%, hit especially hard by tequilas like Don Julio. “There’s much more for us to do, and we need to go faster,” Jhangiani said. Richard Scrope, who runs the VT Tyndall Global Select Fund, put it bluntly: “no one will know until a permanent CEO is in place.” (Reuters)
So, with that overhang, what traders really want from the next update is more about the tone than the figures. They’re listening for signs that U.S. demand might be steadying, looking for any color on pricing, and watching to see how management talks about handling costs and cash.
India’s name gets tossed around for a reason: the potential cash influx matters, and the asset itself is unpredictable. Anything that converts a sports stake into tangible balance-sheet support could be a win, particularly if steadier trading shows up at the same time.
KKR and Blackstone are among a group of global private equity giants circling Indian Premier League franchises, Reuters said Tuesday, with Royal Challengers Bengaluru—the league’s most recent champion—emerging as a key target. Houlihan Lokey last put the IPL’s value at $18.5 billion, a record, and the 2022 media rights auction cleared $6 billion. Some bankers are warning the 2027 broadcast renewal might not be as easy, especially if the Disney-Reliance tie-up squeezes out rivals. “India’s structural economic growth should continue to support long-term value creation,” said Siddharth Patel, managing partner at CVC Capital. (Reuters)
Back in November, United Spirits, Diageo’s India subsidiary, kicked off a strategic review of its stake in the company behind Royal Challengers Bengaluru. The group called the sports asset “valuable and strategic,” but admitted it’s “non-core” for the drinks business. That review wraps up by March 31, 2026. For the year ended March 31, 2025, Reuters noted the sports business made up 8.3% of United Spirits’ total core profit. (Reuters)
Diageo heads into Tuesday following a softer showing the previous session. Shares closed out Monday at 1,802 pence, slipping 1.21%, Reuters data showed. (Reuters)
But the main story is still North America, not India. Investors will be watching for hints of aggressive discounting, beefed-up promos, or distributors dragging their feet on de-stocking — all ways margin gets chewed up, even if volumes hold steady.
Still, there’s a catch. The IPL story won’t mean much unless it actually sparks a deal, and if questions start swirling around media-rights growth, valuations might tumble fast. Should U.S. demand remain sluggish, expect that to take center stage in the conversation once more.
Diageo plans to release its interim results for the half-year to Dec. 31, 2025, on Feb. 25, according to the company’s investor calendar. A webcast is set for 0705 UK time, then a conference call kicks off at 0930. (diageo.com)
