General Mills Inc
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +4.91%.
Did GIS Beat Earnings? Q4 2025 Results
General Mills closed its fiscal fourth quarter with a modest earnings beat that masked the deeper story of a company spending its way toward a recovery. Adjusted diluted EPS came in at $0.74, edging past the $0.71 consensus estimate by 4.23%, but revenue slipped 3.4% year-over-year to $4.56 billion as deliberate investments in consumer value and brand building compressed margins sharply, with adjusted operating profit margin contracting 330 basis points to 13.7%. The heaviest drag came from North America Retail, where net sales fell 10% to $2.56 billion, though the segment held or gained pound share in 64% of its top 10 U.S. categories, offering early evidence that the spending is gaining traction. North America Pet provided a rare bright spot, with net sales jumping 12% to $675.20 million. The pain is expected to persist into fiscal 2026, with General Mills guiding for adjusted diluted EPS to decline 10-15% in constant currency as it accelerates investment, including a national Blue Buffalo fresh pet food launch, while a global transformation initiative targets $100 million in incremental cost savings.
- Investments in consumer value and product news drove improved volume trends in Q4
- North America Pet segment outpaced all-channel retail sales by approximately 3 points due to retailer inventory buildup
- International segment led by strong growth in Brazil and distributor markets
- Holistic Margin Management (HMM) cost savings partially offset input cost inflation
- Unfavorable trade expense timing was a 2-point headwind to Q4 organic net sales and 13-point headwind to operating profit growth
- Higher input costs and unfavorable net price realization and mix pressured gross margins
“The investments we made in the second half of fiscal 2025 to bring consumers more value worked as we expected, driving improved volume and pound share trends in the fourth quarter. Our Q4 financial results reflected these incremental investments and finished in line with our updated expectations.”
General Mills CEO, on the earnings call
Forward Guidance & Outlook
For fiscal 2026, General Mills expects organic net sales to range between down 1% and up 1%. Adjusted operating profit is expected to decline 10-15% in constant currency from the fiscal 2025 base of $3.4 billion. Adjusted diluted EPS is also expected to decline 10-15% in constant currency from the $4.21 base. Free cash flow conversion is expected to be at least 95% of adjusted after-tax earnings. The net impact of divestitures, acquisitions, foreign exchange, and the 53rd week is expected to reduce full-year net sales growth by approximately 4%. The company's top priority is restoring volume-driven organic sales growth through increased investment in consumer value, product news, innovation, and brand building, including a national launch of Blue Buffalo into fresh pet food. The global transformation initiative and additional efficiency efforts are expected to generate $100 million in incremental cost savings. The U.S. yogurt divestiture to Lactalis is expected to close by the end of June 2025.
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Figures from SEC filings and company reports. Not investment advice.