Diageo rated Buy with strong earnings rebound and 12% annual return potential by 2031

Diageo is reaffirmed as a Buy due to nearing completion of restructuring and expected strong earnings growth. The company's premium global brands and improving consumption trends among Gen Z consumers support long-term growth. Analysts project net income rising from $1.7 billion in 2026 to $4.6 billion by 2031, with profit margins recovering above 20%. Valuation is expected to compress from 30x to 11x earnings by 2031, potentially delivering a 12% annualized return if the price-to-earnings ratio holds at 19x.

As of Oct 22, 2026 16:02 WIB, Diageo plc (NYSE: DEO) trades on Pluang at USD 92.71, down slightly by 0.15% for the day. The company holds a market cap of $51.96 billion and offers a dividend yield of 2.14%. This stable trading environment coincides with analysts' projections of strong earnings growth and improving profit margins through 2031.