Summary of the Q325 trading update Diageo Q3 LFL sales grew +5.9% (vols +2.8%; price /mix +3.1%), benefitting from c.+4%-pt impact from favourable phasing which is mostly expected to unwind in Q4. Around 2/3rds of the Q3 phasing tailwind was seen in North America which grew LFL sales +6.2% and benefitted from a pull-forward of imported shipments in anticipation of tariffs and continued tequila restocking given the strength of consumer demand for Don Julio. US spirits Q3 LFL sales grew +7% on value depletion growth of +2%. The remaining 1/3 of the Q3 phasing benefit was recorded in LAC where LFL sales grew +28.5%. News We highlight that Diageo sees opportunity for substantial disposals (beyond regular portfolio trimming) with a view to maximising shareholder value. Earnings Our FY25e-FY27e EPS estimates remain materially unchanged. Investment thesis We see risk that further moderation of Diageo''s US growth leads to earnings downgrades and a de-rating. Rating and target price We maintain our Underperform rating. Our TP moves from GBp1,775 to GBp1,720 (driven by higher forecast net debt in our EV-based target price derivation). 15 questions for management Assuming you hold your dividend flat, what do you see as the underlying (ex. disposals) ability of the business to de-lever in FY26 on free cash flow of c.USD3bn?