Diageo PLC's stock plummeted 13.32% intraday on Wednesday, as the spirits giant faced a sharp sell-off following a series of negative announcements.

The decline came after Diageo lowered its sales and profit forecasts for fiscal 2026, citing weak demand in key markets. The company now expects organic net sales to decline 2% to 3% for the year, down from prior guidance of flat to slightly down, with organic operating profit projected to be flat or show only marginal growth. This revision is primarily due to continued softness in the North American and Chinese markets, where pressure on disposable income has hurt consumer spending on spirits.

Adding to investor concerns, Diageo significantly reduced its interim dividend to $0.20 per share, down from $0.405 a year earlier. New CEO Dave Lewis stated the cut was necessary to strengthen the company's balance sheet and provide financial flexibility for his turnaround plan. Specific weakness was noted in the U.S. market for premium tequila brands, as cost-conscious consumers traded down to cheaper alternatives.