July 1, 2026

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General Mills, Inc. (NYSE: GIS) reported fiscal fourth-quarter 2026 results above expectations, supported by stronger adjusted earnings, modest sales growth, improved adjusted operating profit, and a new long-term cost savings target.
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General Mills is a packaged food company that owns brands across cereal, snacks, meals, baking products, pet food, yogurt alternatives, and foodservice products, including Cheerios, Pillsbury, Betty Crocker, Blue Buffalo, Nature Valley, and Häagen-Dazs.
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The company reported adjusted EPS of $0.95, above estimates of $0.82, representing a 15.9% earnings surprise. Net sales came in at $4.61 billion, slightly above estimates of $4.60 billion, with reported sales growth of 1.2%.

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Results Showed Adjusted Profit Growth

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Fourth-quarter net sales increased 1% to $4.6 billion.
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Organic net sales were flat from the prior year, reflecting a balance between lower volume and stronger price and mix.
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Gross margin improved 240 basis points to 34.8% of sales. Adjusted gross margin increased 150 basis points to 34.2%, helped by favorable price and mix, partly offset by higher input costs.
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General Mills reported an operating loss of $2.1 billion, driven by non-cash goodwill and brand intangible asset charges, along with a non-cash valuation loss tied to the planned divestiture of the Brazil business.
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Adjusted operating profit was $705 million, up 13% in constant currency. Adjusted operating margin improved 160 basis points to 15.3%.
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Adjusted diluted EPS increased 27% in constant currency to $0.95.

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Segment Results Were Mixed

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North America Retail sales declined 4% to $2.5 billion, though segment operating profit increased 7% due to favorable price and mix, lower SG&A expenses, and trade expense timing.
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North America Pet sales increased 4% to $702 million, helped by growth in cat food and dog food. Segment operating profit increased 14%.
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North America Foodservice sales declined 1% to $575 million, while segment operating profit rose 22% due to cost savings and favorable price and mix.
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International sales increased 16% to $858 million, supported by growth in Brazil, Europe, India, and China. Segment operating profit increased 81% as reported and 72% in constant currency.

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Fiscal 2027 Outlook and Cost Savings

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General Mills said fiscal 2027 will focus on restoring profitable organic sales growth through stronger innovation, renovation, packaging, brand communication, omnichannel execution, and consumer value.
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The company expects fiscal 2027 organic net sales to range from down 1.5% to up 0.5%.
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Adjusted operating profit is expected to decline 13% to 8% in constant currency, while adjusted diluted EPS is expected to range from $3.00 to $3.20.
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General Mills also announced a plan to generate $3 billion in cumulative cost savings by fiscal 2030.
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The company expects at least $750 million in savings in fiscal 2027 through its Holistic Margin Management productivity program, global transformation initiative, and other efficiency actions.
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The board also declared a quarterly dividend of $0.61 per share.

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The Bigger Picture

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General Mills delivered a better adjusted earnings quarter, but the headline results were complicated by large non-cash charges.
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The adjusted numbers showed stronger profitability, with EPS above expectations and adjusted operating profit up double digits. At the same time, the company reported a GAAP operating loss due to impairment charges and the planned Brazil divestiture.
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The next phase is about execution. General Mills needs to restore organic growth while managing inflation, funding brand investments, and delivering cost savings. The $3 billion efficiency target gives investors a clearer margin plan, but fiscal 2027 guidance still points to pressure on adjusted operating profit and EPS.
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