Brown-Forman Corp Class B (NYSE:BF.B) stock rose 2.26% (As on December 5, 11:16:10 AM UTC-4, Source: Google Finance) after the company posted mixed result for the second quarter of FY26. In the fiscal second quarter, BF.B’s gross profit of $615 million declined 5% year over year on a reported and 4% on an organic basis. However, the gross margin expanded 20 basis points (bps) to 59.3%, aided by the effect of acquisitions and divestitures. This gain was partly offset by higher costs and unfavorable price/mix. Operating income decreased 10% year over year to $305 million on a reported basis and fell 9% on an organic basis. The operating margin of 29.4% contracted 170 bps from 31.1% reported in the year-ago quarter. Operating income decreased 10% year over year to $305 million on a reported basis and fell 9% on an organic basis. The operating margin of 29.4% contracted 170 bps from 31.1% reported in the year-ago quarter.

Meanwhile, in a challenging economic landscape, net sales in the Developed International markets dipped 4% on a reported basis and 6% on an organic basis, despite sequential improvement. The decrease was led by the absence of American-made beverage alcohol from retail shelves in the majority of the Canadian provinces and reduced volumes of Jack Daniel’s Tennessee Whiskey in Germany and the United Kingdom. Net sales in Emerging markets increased 10% on a reported basis and 12% on an organic basis, backed by solid double-digit growth of New Mix, increased volumes across the Jack Daniel’s family of brands in Brazil and Türkiye, and an expected net increase in distributor inventories. The Travel Retail channel’s net sales jumped 7% on a reported basis and 6% on an organic basis, owing to higher volumes of Jack Daniel’s Tennessee Whiskey, the phasing of ordering patterns and the gains from foreign exchange. In the fiscal half, net sales for Whiskey products were flat year over year, both on a reported and organic basis.

BF.B in the second quarter of FY26 has reported the adjusted earnings per share of 47 cents, missing the analysts’ estimates for the adjusted earnings per share of 48 cents. The company had reported the adjusted revenue decline of 5 percent to $1.036 billion in the second quarter of FY26, beating the analysts’ estimates for revenue of $1.027 billion. On an organic basis, net sales dipped 2% from the prior-year period.