London, Jan 26, 2026, 09:10 GMT — Regular session
- Diageo shares were mostly flat in early London trading, following a sluggish finish to last week
- Investors are eyeing interim results due Feb. 25 for fresh insights on strategy and demand
- The stock is still far from its 52-week high, adding pressure on management
Diageo (DGE.L) edged up 0.03% to 1,675.5 pence in early Monday trading, just above last Friday’s close of 1,675.0 pence. The shares remain roughly 34% shy of their 52-week peak at 2,535 pence. MarketScreener
It’s crucial since Diageo’s upcoming results arrive in a market that’s lost patience with major consumer players. Investors are eager to see which changes under the new CEO are making an impact and if the demand slump has finally bottomed out.
European shares held steady, as investors stayed cautious following recent tariff concerns and ahead of this week’s U.S. Federal Reserve policy announcement. Reuters
Diageo has set expectations low for the year. In an “aide memoire” issued this month, the company reiterated its fiscal 2026 guidance for organic net sales growth — that is, like-for-like — to be flat or slightly negative. The firm pointed to challenges from Chinese white spirits and a softer U.S. consumer market than anticipated. www.diageo.com
The company has also relied on its Accelerate programme, expecting it to drive low- to mid-single-digit organic operating profit growth as cost savings come through. www.diageo.com
Sir Dave Lewis, stepping in as CEO on Jan. 1, acknowledged the market is dealing with “some headwinds” but emphasized “significant opportunities” ahead. www.diageo.com
Since Diageo slashed its annual forecast in November, the stock has struggled to stabilize amid softer U.S. sales and a sharp drop in China caused by baijiu’s slump. Reuters
China is still a hot topic. Bloomberg reported earlier this month that Diageo is exploring options for its China assets, possibly including a sale. The company declined to comment to Reuters when asked. Reuters
Dividends and balance sheet moves could spark fresh tensions. Back in November, Fintan Ryan at Goodbody flagged asset sales as still being “part of the strategy” to lower leverage. Chris Beckett from Quilter Cheviot suggested a dividend cut might ease pressure over time, though it could weigh on shares initially. Reuters
The downside risk remains: a drawn-out U.S. slowdown, ongoing discounts in spirits, or another weak spell in China could push companies to make harder calls on pricing, spending, and returns.
Diageo’s interim results drop on Feb. 25, putting focus on whether the company will revise guidance or signal changes in capital allocation, especially dividends. www.diageo.com
