US Stock Market Move | Lowered profit guidance for fiscal year 2026 Diageo plc Sponsored ADR(DEO.US) plunged more than 12% in pre-market trading.

On Wednesday, Diageo plc Sponsored ADR (DEO.US) plummeted more than 12% in pre-market trading, to $89.76. The company announced a reduction in its dividend, as well as a cut to its organic sales and profit guidance for the fiscal year ending in 2026, mainly due to weak markets in the US and China, as well as a challenging trading environment in the first half of the year. Diageo plc Sponsored ADR expects organic sales for the 2026 fiscal year to decline by 2% to 3%, while organic operating profit is expected to remain steady or increase by low single digits. Previous expectations were for flat to slightly declining organic net sales, and organic operating profit growth in the low to mid-single digits. In terms of shareholder dividends, the board announced a interim dividend of $0.20 per share, lower than last year's $0.405 per share. "The board has made the difficult decision to reduce the dividend to a more appropriate level, which will accelerate the strengthening of our balance sheet," said CEO Dave Lewis, noting the need for improved financial flexibility within the group. "We believe this is the right move to ensure that Diageo plc Sponsored ADR cements its position as a leading international spirits company and drives stronger shareholder value in the years to come."