European stock markets advanced on Wednesday, while shares of British spirits giant Diageo PLC fell 8% in early trading. The company lowered its sales and profit forecasts for 2026 on Wednesday. The world's largest spirits producer indicated that weak demand in North America and China has impacted its performance in the first quarter of the current fiscal year.

In the six months ended December, Diageo's net sales declined by 4% to $10.5 billion, with the company citing "pressure on disposable income affecting the U.S. spirits market." Operating profit also decreased by 1.2% to $3.1 billion. Diageo anticipates that the challenging conditions will persist into 2026, projecting a decline in organic sales of 2–3%, with organic operating profit expected to be flat or show only marginal growth. The dividend has been reduced to 20 cents per share.