Diageo shares recover as Sir Dave Lewis begins tenure

Diageo shares have seen a recent recovery, climbing 12.5% over the past month, marking one of the company's strongest runs in years. This follows a significant five-year decline where the stock lost more than half its value.

Financial disclosures for the fiscal year ended June 30, 2025, showed net sales of $20,245 million, nearly flat compared to the previous year. However, operating profit fell 28% to $4,335 million. For fiscal 2026, the company recommended a dividend cut of approximately 52%, from 103.48 cents to 50.00 cents per share. Organic net sales for fiscal 2026 declined 2%, impacted by weakness in the US spirits market and Chinese demand.

The company's recovery efforts are being watched alongside the leadership of Sir Dave Lewis, who became chief executive on January 1, 2026. Lewis, formerly the CEO of Tesco, is noted for his experience in corporate turnaround and stabilization.