BF-A BROWN FORMAN CORP

Overview and Growth

In fiscal 2026, BROWN FORMAN CORP recorded $3.93B of revenue, net income of $715.00M, and an operating cash inflow of $1.00B. The $3.93B revenue base provides substantial context for the company’s earnings, cash generation, and capital requirements. Compared with $3.98B in fiscal 2025, revenue decreased 1.2%, a top-line contraction that reduced operating scale. On a per-share basis, diluted EPS was $1.53, which connects the reported earnings outcome with the company’s diluted share count. Diluted EPS decreased by 16.8% from $1.84 in fiscal 2025, showing how the earnings change reached shareholders on a per-share basis. The revenue-to-assets relationship was 0.5x, showing the sales generated relative to the resources carried on the balance sheet.

Profitability

The first profit layer was $2.38B of gross profit, the amount available after reported direct revenue costs to absorb operating expenses. Gross profit represented 60.5% of revenue, showing how much of the top line remained after direct costs. Operations produced $1.00B of income after the reported operating expense base, before the remaining non-operating and tax effects. The operating result equaled 25.5% of revenue, placing the absolute operating-income figure in the context of the company’s sales base. Net income came to $715.00M, completing the progression from revenue through gross and operating profitability to the final reported result. The final earnings result represented 18.2% of revenue, connecting the absolute net income figure with the company’s top-line scale. Pretax income was $885.00M, isolating the reported earnings outcome before the income-tax provision recognized for the fiscal year. Measured against revenue, pretax income equaled 22.5%, adding a pre-tax profitability layer between revenue and net income. Income tax expense totaled $170.00M, providing the reported tax component that separates pretax and after-tax earnings. The effective relationship between income tax and positive pretax income was 19.2%, without assuming a statutory-rate comparison.

Liquidity and Capital Structure

The company held $7.89B of assets against $3.87B of liabilities and $4.02B of equity, revealing how the asset base was financed. Current assets were $3.99B against $1.23B of current liabilities, framing the resources and obligations classified within the near-term balance-sheet horizon. The current ratio was 3.24x, with current assets exceeding current liabilities and providing a short-term liquidity cushion. Cash and equivalents totaled $308.00M, identifying the most liquid reported component available within the broader current-asset balance. The cash balance equaled 25.0% of current liabilities, showing how much near-term coverage came from cash alone. Borrowings totaled $2.43B, adding a fixed financing obligation alongside the company’s equity capital. Against book equity, debt measured 0.61x, placing the company’s financial leverage in clear balance-sheet terms. The debt-to-assets relationship was 30.8%, comparing borrowing with the total asset balance. Liabilities represented 49.1% of total assets, quantifying the liability-funded share of the company’s resource base. Cash and equivalents equaled 3.9% of total assets, showing the liquid cash component within the company’s broader resource base.

Cash Flow and Earnings Quality

Cash flow from operations was $1.00B, a reported cash inflow that can be compared directly with net income and capital spending. Operating cash flow equaled 1.4x of net income, showing how strongly accounting earnings converted into cash from operations. Capital spending was $107.00M, absorbing part of the cash generated from operations before free cash flow. Capital spending absorbed 10.7% of operating cash flow, quantifying the share of cash from operations directed to investment. Free cash flow came to $893.00M, leaving a positive amount after capital expenditures. The free-cash-flow margin was 22.7%, measuring cash remaining after capital spending against revenue. Measured against total assets, free cash flow represented 11.3%, showing the cash productivity of the company’s assets.

Based on the annual report for the fiscal year ending Apr 30, 2026. Analysis generated Oct 21, 2026.