Diageo PLC (LSE:DGE) should be able to 'split the G' and hit guidance this year, according to analysts at Citi, but the main investor focus will be on the outlook when full-year results are released on 5 August.
The US bank, which reiterated its 'buy' rating on the share, expects organic sales growth (OSG) guidance for the year to June 2026 to be "subdued", potentially "flat-to-slightly lower" than the past year.
Citi forecasts OSG at +1.2% for the coming 2026 financial year and anticipates that will lead to some downgrades by others around the City of London.
That said, the analysts believe the market will take comfort from more detail on the company’s Accelerate Programme, which is expected to support earnings delivery via cost savings and margin leverage.
Cash flow improvement and deleveraging are also set to underpin sentiment.
With no new negative catalysts, Citi says confidence is rising that Diageo “is in control of what it can control,” and sees potential long-term value in the Guinness business heading into 2026 and beyond.