General Mills Inc
Q1 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +0.79%.
Did GIS Beat Earnings? Q1 2026 Results
General Mills delivered a modest first-quarter beat to open fiscal 2026, reporting adjusted diluted EPS of $0.86 against a consensus estimate of $0.82, a 5.44% positive surprise, while net sales of $4.52 billion came in fractionally ahead of expectations despite falling 6.8% year over year. The headline revenue decline was largely structural, with the completed divestiture of its U.S. yogurt business to Groupe Lactalis accounting for a four-point headwind, and organic net sales dropping 3% as the company deliberately invested in consumer pricing to rebuild volume momentum. Adjusted operating profit of $711.20 million came in slightly above internal targets, though management cautioned that favorable input cost timing and International phasing benefits are expected to reverse in Q2. CEO Jeff Harmening pointed to share gains in 8 of the top 10 U.S. categories as evidence that its brand investment strategy is taking hold, with a major Blue Buffalo fresh pet food launch set for next quarter. General Mills reaffirmed its full-year fiscal 2026 outlook, guiding for organic net sales between down 1% and up 1%, with adjusted EPS and operating profit both expected to decline 10-15% in constant currency.
- Held or gained pound share in 8 of top 10 U.S. categories through increased consumer value, innovation, and product news
- International segment organic net sales up 4%, driven by growth in India, North Asia, and Europe
- $1.05 billion gain on U.S. yogurt divestiture to Groupe Lactalis boosted GAAP results
- Lower net shares outstanding (4% decline) partially offset profit declines on a per-share basis
- Favorable phasing of input cost inflation and timing benefits in International drove Q1 adjusted operating profit slightly ahead of expectations
- North America Foodservice organic net sales up 1%, driven by growth in cereal and biscuits
“Our primary goal in fiscal 2026 is to restore organic sales growth by investing in greater value, innovation, and product news for consumers. I'm pleased that we're seeing the returns we expected on these investments, helping us grow or hold pound share in 8 of our top 10 U.S. categories while continuing to drive strong competitiveness in foodservice and international markets in the first quarter.”
General Mills CEO, on the earnings call
Forward Guidance & Outlook
General Mills reaffirmed its full-year fiscal 2026 financial targets: organic net sales expected to range between down 1% and up 1%; adjusted operating profit and adjusted diluted EPS both expected to be down 10 to 15% in constant currency; free cash flow conversion expected to be at least 95% of adjusted after-tax earnings. The net impact of divestitures, acquisitions, foreign currency exchange, and the 53rd week is expected to reduce full-year net sales growth by approximately 4%. The company expects input cost inflation (including tariff impacts), growth investments, normalization of corporate incentive expense, and divested yogurt earnings to weigh on results, partially offset by Holistic Margin Management cost savings of 5% of COGS, $100 million in global transformation and efficiency savings, and a 53rd week benefit. Restructuring and transformation charges and transaction costs are expected to total approximately $90-$95 million for fiscal 2026.
GIS YoY Financials
GIS Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.