Why Are Top Brands Racing to Drop Their Pride Month Masks This Year?

It’s Pride Month, and we’re seeing Schrodinger’s marketing, as brands try to be both in and out of the closet with their support of the LGBTQ+ community. 

It’s no secret that since the 2024 presidential election, corporate support for the 31 million Americans in this community has dropped faster than a disco ball on New Year’s Eve. Gravity Research’s 2025 Pride Pulse Poll reported that 39% of companies reduced overall Pride Month engagement in 2025, up from just 9% in 2024.

More recently, only 131 Fortune 500 companies were willing to participate in the Human Rights Campaign’s “2026 Corporate Equality Index,” down 65% from 377 the year before.

On the ground, Pittsburgh Pride organizers expect to raise only 30%-40% of the sponsorship money they got a few years ago. Tampa Pride announced a one-year hiatus after a slew of corporations dropped their sponsorships. Phoenix Pride recently declared bankruptcy, and Tucson Pride went out of business. NYC Pride reported a 25% drop in corporate sponsorships.

Speaking of NYC Pride, Matt Skallerud, president of Pink Media marketing communications, has an in-depth look at the major brands that backed out of supporting the event: 

• Mastercard — Platinum last year, out in 2026.
• Target — “silent partner,” no public mention.
• Garnier — Platinum last year, out in 2026
• Skyy Vodka — Platinum last year, out in 2026, sponsoring a house party.
• Citi — drastically reduced support.
• Nissan — drastically reduced.
• PepsiCo — drastically reduced.
• PricewaterhouseCoopers — drastically reduced.

“What do those brands have in common?” he wrote. “They were, by and large, in it for the optics — the visibility, the quarterly DEI metrics, the association with a premium cultural moment.” 

The rainbow came down, but the targeting stayed up

And, many of them are still trying to have it both ways, by continuing to target the LGBTQIA+ community with lower profile marketing. 

Mastercard still promotes its True Name program, which says it is  “Empowering LGBTQIA+ Community to be Their True Self.” Target, meanwhile, only has Pride merchandise in a “limited number” of stores, but it remains available online, where it can celebrate inclusion from a safer distance.

To be fair, Mastercard is still sort of participating in NYC Pride, paying for a group of employees to carry the company’s banner in the parade. Similarly, in San Francisco, Starbucks will hand out coffee to Pride marchers, but is skipping a corporate donation for the event. That’s the corporate equivalent of “Some of our best friends are gay.”

It’s important to note Skallerud’s list of the brands that stepped up when others stepped back.

• L’Oréal — sole remaining Platinum sponsor
• Deutsche Bank — increased to Platinum, $100K commitment
• Marriott — #LoveTravels, long-term LGBTQ+ program
• Hilton — LGBTQ+ travel program, continued
• Wegmans — consistent community presence
• Giant Food — continued Pride commitment
• VIDA Fitness — standing by the community

Brands aren’t fooling anyone

The change of support for Pride Month is noticed by consumers, and not just in the LGBTQ+ community. An Omnisend study found that 37% of U.S. consumers are very aware of brands pulling back from Pride initiatives over the last year. The trend is most pronounced among Gen Zs (69%-75%), Millennials (66%-78%), and LGBTQ+ community members (76%-85%).

Being inconsistent on important issues hurts brands with all consumers, not just the community the company was trying to connect with. Research by Australia’s University of New South Wales found liberal and conservative consumers dislike brands that appear inauthentic or opportunistic in their political stances. That’s true regardless of whether they agree or disagree with the brand’s stance, new or old. 

One problem for brands that go whichever way the political wind blows is that the wind changes direction. Frequently.

Mintel’s “U.S. Diversity, Equity, Inclusion and Belonging Consumer Report” found that consumer support for DEI efforts rose from 42% to 56% in a single year, a striking increase during a period when many brands pulled back. The report also found brands that held firm on their DEI commitments saw their purchase consideration tick upward, while brands that rolled back saw their momentum turn negative.

Furthermore, a GLAAD-commissioned poll of 5,010 U.S. adults found 68% believe brands and companies should be able to show support for the LGBTQ community during Pride. 

Bottom line: Just don’t do it

In the AI era, authenticity is the most important brand value. Companies that waffle on an external issue would be best served by shutting up about it. As the Bible says, “Even fools are thought wise if they keep silent.”

Marketers are currently modeling “backlash exposure” to avoid controversy, but they are miscalculating the financial risk. Overlooked, highly loyal Gen Z and Millennial audiences are actively tracking who stands firm and who runs away — and they have long memories.