General Mills Inc
Q4 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.60%.
Did GIS Beat Earnings? Q4 2026 Results
General Mills delivered a decisive beat in fiscal Q4 2026, with adjusted diluted EPS of $0.95 clearing the $0.80 consensus by 19.21% and revenue of $4.61 billion topping estimates by 6.43% as sales edged 1.2% higher year over year. The standout driver was a sharp improvement in profitability, with gross margin expanding 240 basis points to 34.8% and adjusted operating profit rising 13% in constant currency to $705.40 million, aided by a meaningfully lower adjusted effective tax rate of 12.7% compared to 19.2% a year ago. Beneath the adjusted results, however, the quarter carried the weight of $2.80 billion in non-cash charges, including $1.75 billion in goodwill and intangible impairments tied largely to the North America Pet segment. Looking ahead, management guided fiscal 2027 adjusted diluted EPS to a range of $3.00 to $3.20, with organic net sales expected between down 1.5% and up 0.5%, as the company targets at least $750 million in cost savings toward a $3 billion cumulative goal by fiscal 2030.
- Favorable net price realization and mix drove adjusted gross margin expansion of 150 basis points in Q4
- 53rd week provided a 7-point benefit to Q4 reported net sales
- Lower adjusted effective tax rate (12.7% vs 19.2% a year ago) benefited Q4 adjusted EPS
- Lower average shares outstanding (4% decrease in fiscal 2026 to 538 million average diluted shares)
- Favorable trade expense timing was a 9-point benefit to North America Retail operating profit growth in Q4
- International organic net sales grew 3% driven by growth in Brazil, Europe, India, and China
“We finished fiscal 2026 on a positive note, delivering fourth-quarter adjusted results that met our expectations while continuing to strengthen our foundation to position General Mills for long-term success.”
General Mills CEO, on the earnings call
Forward Guidance & Outlook
For fiscal 2027, General Mills expects organic net sales to range between down 1.5% and up 0.5%. Adjusted operating profit is expected to be down 13% to down 8% in constant currency from the $2.8 billion base reported in fiscal 2026. Adjusted diluted EPS is expected between $3.00 and $3.20 per share, with immaterial foreign currency impact. Free cash flow conversion is expected at approximately 95% of adjusted after-tax earnings. The company expects headwinds of approximately 9 points on operating profit and 11 points on EPS from lapping the 53rd week, normalizing corporate incentive expense, and the impact of fiscal 2026 divestitures. The net impact of divestitures, foreign currency exchange, and the 53rd week is expected to reduce full-year reported net sales growth by approximately 2%. The company is targeting at least $750 million in cost savings in fiscal 2027, part of a $3 billion cumulative savings target by fiscal 2030.
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Figures from SEC filings and company reports. Not investment advice.