Diageo (DGE) Share Price: What to Know Before the London Market Opens on 17 November 2025

As the London Stock Exchange prepares to open on Monday 17 November 2025, Diageo plc (LSE: DGE) is squarely in the spotlight. After a brutal guidance cut, a decade‑low share price and the appointment of turnaround specialist Sir Dave Lewis as CEO, the owner of Guinness, Johnnie Walker and Smirnoff is entering a crucial new chapter.

Below is a detailed look at where the Diageo share price stands, what has driven recent volatility, and the key themes investors are likely to watch when trading resumes in London.

Note: All market data in this article refers to the close on Friday 14 November 2025, or the latest available figures, and may change once markets open. This is not investment advice.

1. Where the Diageo share price stands before Monday’s open

Last close: Diageo finished trading on Friday 14 November 2025 at 1,793.5p per share on the London Stock Exchange. ^[1]
Market value: At that level, Diageo’s market capitalisation is just under £40 billion. ^[2]
52‑week range:
- High: 2,619.5p
- Low: 1,664.5p ^[3]

That means Diageo is trading around 30% below its 52‑week high and not far above its recent 12‑month low, underscoring how far sentiment has fallen on what was once a premium‑rated consumer staples star. ^[4]

Reuters and other outlets note that the stock is down in the high‑20s percentage range year‑to‑date, after several profit warnings and a collapse in investor confidence. ^[5]

2. The Q1 trading update that pushed Diageo to decade‑low levels

Diageo’s latest fiscal 2026 Q1 trading statement, released on 6 November 2025, is the main reason the shares have been under so much pressure heading into this week. ^[6]

Key points from the update:

Organic net sales: Flat year‑on‑year
Volume: Up 2.9%
Price/mix: Down 2.8%, meaning more volume but at weaker pricing and mix ^[7]
Regional trends:
- Growth in Europe, Latin America & Caribbean and Africa
- Weakness in Chinese white spirits and a “softer than expected” US consumer environment, particularly for tequila ^[8]

Crucially, management cut its fiscal 2026 guidance, now expecting:

Organic net sales growth:Flat to slightly down
Margins: Under pressure, as Diageo leans harder on promotions, mix shifts and cost inflation ^[9]

The reaction was brutal:

The shares fell more than 5% in a single session, sliding to levels last seen around 2015, with multiple outlets describing the stock as sitting near a ten‑year low. ^[10]

Interim CEO Nik Jhangiani summed up the mood in the trading statement: Diageo is “not satisfied” with its performance and is focusing on what it can control — driving efficiencies, prioritising investment and adapting to changing consumer behaviour. ^[11]

Why this matters for Monday:
Investors heading into the 17 November open are still digesting this downgrade. The Q1 numbers set a lower bar for 2026, but also raise questions about how quickly the business can return to sustainable top‑line growth.

3. New CEO Sir Dave Lewis: can “Drastic Dave” reboot Diageo?

The other big story for Diageo shareholders is leadership change at the top.

The CEO timeline

Earlier in 2025: CEO Debra Crew departed after a turbulent, short tenure marked by profit warnings and falling sales; CFO Nik Jhangiani stepped in as interim CEO. ^[12]
10 November 2025: Diageo announced that Sir Dave Lewis, former Tesco boss and long‑time Unilever executive, will become Chief Executive Officer and Executive Director from 1 January 2026. ^[13]

Lewis is widely known in the City for his turnaround of Tesco after its 2014 accounting scandal, earning the nickname “Drastic Dave” for decisive cost‑cutting and simplification. Analysts expect a similarly tough approach at Diageo.

Market reaction

The market’s verdict on the appointment was immediate:

Diageo’s shares jumped roughly 7% on the day of the announcement, their biggest one‑day rise in five years, helping pull the FTSE 100 higher. ^[14]

Commentary from the Financial Times, Reuters and others emphasises that Lewis is being brought in specifically to revive growth and repair investor trust after years of underperformance and mis‑steps in key markets like the US and China. ^[15]

The dilemma: dividends vs. brand investment

One of Lewis’s toughest early choices will be how to balance:

Maintaining a generous dividend, which is a key part of Diageo’s investment appeal,
versus
Investing heavily in marketing and innovation to reignite growth in core brands, particularly in a world of changing drinking habits and cautious consumers.

Reuters highlights this as a central tension, noting that Diageo’s net debt sits at around 3.4× EBITDA, with Fitch having shifted its outlook on the company’s credit rating to “negative” in September — a warning shot that leverage and cash allocation are under close scrutiny. ^[16]

Why this matters for Monday:
Heading into 17 November, the market has already priced in some optimism about Lewis’s arrival, but investors will now look for any clues on his early priorities — especially around cost savings, asset disposals and marketing spend.

4. Fundamentals: profit slump, debt load and cost‑saving plans

2025 results: weak profits but strong cash flow

Diageo’s preliminary results for the year ended 30 June 2025 painted a mixed picture: ^[17]

Net sales: $20.2 billion, essentially flat year‑on‑year
Organic net sales growth:1.7%
Operating profit: Down 27.8% (hit by exceptional charges)
Net profit: Down 39.1%
Free cash flow: Up slightly to $2.7 billion
Net debt:$21.9 billion, equal to 3.4× net debt to adjusted EBITDA, at the top end of the company’s target range

The results underline a core issue: cash generation remains solid, but profitability and growth have stalled, forcing management to rely more heavily on cost savings.

“Accelerate” and the upgraded cost‑saving target

As part of its “Accelerate” programme, Diageo has:

Increased its medium‑term cost‑saving target to around $625 million, up from $500 million previously. ^[18]

This plays directly into the new CEO’s hands: Lewis inherits a company where a large restructuring and efficiency plan is already in motion, but where investors now expect faster, more decisive execution.

Why this matters for Monday:
Debt, rating risk and the credibility of the cost‑saving plan are likely to remain in focus as investors weigh how much upside is left in Diageo if earnings disappoint again in 2026.

5. Dividends: a 4–5% yield in focus as the next payment approaches

For many shareholders, Diageo is first and foremost a dividend stock.

Current dividend profile

For the year to June 2025, the board recommended a full‑year dividend of 103.48 US cents per share, made up of:
- Interim: 40.50 cents (31.48p sterling equivalent, paid 24 April 2025) ^[19]
- Final: 62.98 cents (47.892p sterling equivalent), with payment due on 4 December 2025. ^[20]

On the current London share price around 1,793.5p, various data providers estimate Diageo’s dividend yield in the 4–5% range, close to the upper end of its 10‑year history. ^[21]

What investors will ask

With a new CEO and a big cost‑saving plan, the central question is whether Diageo:

Keeps the dividend growing, relying on efficiencies and asset sales to fund both payouts and investment, or
Rebases or slows dividend growth to free up more cash for marketing, innovation and debt reduction.

For Monday’s open, the dividend itself is not expected to change, but yield‑sensitive investors will be watching for any commentary or analyst notes questioning the sustainability of near‑record payouts in a low‑growth environment.

6. Valuation: cheap, expensive, or a value trap?

Depending on who you ask, Diageo is either:

Moderately undervalued after a big derating, or
A value trap where the risk/reward is still unattractive despite the share price fall.

The numbers

Price/earnings (P/E): Recent estimates put Diageo’s trailing P/E around 22–23×, roughly in line with its 10‑year average but above its 3‑ and 5‑year averages. ^[22]
Dividend yield: Roughly 4–4.5%, close to a decade high. ^[23]

Analyst views

Morningstar: The Q1 miss and guidance cut led Morningstar to reduce its fair value estimate, but the firm still describes Diageo stock as “moderately undervalued” at current levels. ^[24]
Bernstein: Cut its Diageo price target from 2,550p to 2,420p but maintained an Outperform rating, citing stable Q1 revenues but a weaker 2026 outlook. ^[25]
Bank of America: Trimmed its price objective and earnings forecasts after the guidance revision, pointing to continued challenges in North America and uncertainty around the new strategy. ^[26]
Bearish voices: Some research and opinion pieces still label Diageo a “value trap”, arguing that structural issues in key markets and premium spirits demand could cap recovery even under new leadership. ^[27]

Why this matters for Monday:
The valuation debate is likely to frame how investors react to any new data or commentary. If the market believes Lewis can execute a Tesco‑style turnaround, a re‑rating from depressed levels is possible. If not, the stock could continue to trade sideways despite a rich brand portfolio.

7. Macro and industry headwinds still weighing on sentiment

Even with a new CEO and cost‑cutting drive, Diageo is not operating in a vacuum. Several broader themes are likely to influence how the DGE share price trades around the 17 November open:

Changing drinking habits
- Younger consumers in many markets are drinking less often, trading down or shifting toward no‑ and low‑alcohol options — a trend highlighted in multiple industry and media analyses of Diageo’s slowdown. ^[28]
Tariffs and regulatory risk
- Diageo has warned about US tariffs on imported spirits and related uncertainty, factors that already led the company to scrap medium‑term sales guidance in favour of shorter‑term outlooks. ^[29]
Cost‑of‑living pressures
- After hopes for a “roaring twenties” recovery in on‑trade drinking, higher living costs have squeezed discretionary spending, hurting premium spirits volumes in several markets. ^[30]
Interest rates and yields
- As a dividend‑paying defensive stock with significant debt, Diageo is sensitive to movements in bond yields and expectations for rate cuts. That macro backdrop will continue to shape how investors value its cash flows.

8. Key things to watch as the London market opens on 17 November 2025

When trading starts in London on Monday morning, here are the main questions likely to drive Diageo’s share price direction:

Follow‑through on the CEO bounce
- The initial 7% relief rally on Dave Lewis’s appointment has already faded somewhat, with the stock back below 1,800p. Investors will be asking whether that optimism can re‑ignite, or whether the CEO news is now fully priced in. ^[31]
Analyst reaction and fresh research notes
- After the guidance cut, several brokers cut targets but maintained positive recommendations. Any new rating changes, downgrades, or target revisions published around the open could sway sentiment. ^[32]
Positioning into the 4 December dividend payment
- Income investors may view the current 4–5% yield and upcoming dividend payment as a reason to accumulate, while more cautious shareholders may see the payout as at risk if earnings disappoint again. ^[33]
Signals on strategy from media and industry commentary
- With Lewis not officially in the role until January, investors will be parsing interviews, op-eds and leaks for hints about:
  - Potential asset disposals
  - The future of underperforming brands and geographies
  - The balance between marketing investment and cost cutting ^[34]
Broader market mood
- Diageo recently moved in tandem with a broader UK market rally tied to optimism over a US government shutdown resolution. If risk appetite improves again, Diageo could benefit as a beaten‑down FTSE 100 constituent; in a risk‑off session, the stock may still be vulnerable given its recent volatility. ^[35]

9. Bottom line: a classic “turnaround stock” heading into a new week

Going into the 17 November 2025 open, Diageo offers a classic turnaround mix:

Strong brands and global scale
A new high‑profile CEO with a cost‑cutting track record
Stretched but manageable leverage and a big cost‑saving plan
A historically high dividend yield
A share price near multi‑year lows

At the same time, the company faces:

Weak demand in the US and China
Pressure on pricing and mix despite higher volumes
Tighter credit scrutiny and a Fitch “negative” outlook
Shifting consumer behaviour and macro headwinds

How the Diageo share price trades when the London market opens on Monday will depend on which narrative investors focus on: the potential for a Lewis‑led revival, or the risk that the hangover from past mis‑steps lasts longer than expected.

Disclaimer: This article is for information and news purposes only and does not constitute financial advice, investment recommendation or an offer to buy or sell any security. Always do your own research or consult a qualified financial adviser before making investment decisions.

DIAGEO PLC SHARE GBX ( PENNY STERLING) IS A BUY NOW!.