General Mills, Inc. (NYSE:GIS) posted first-quarter fiscal 2026 results on Wednesday, surpassing analyst earnings expectations even as sales declined, and reaffirmed its full-year guidance.
The company reported adjusted earnings of $0.86 per share, above the $0.81 consensus estimate, despite a 7% drop in net sales to $4.5 billion. Quarterly revenue of $4.52 billion met analyst projections but fell 3% organically, driven largely by pricing pressures and mix effects from investments in North America Retail. Adjusted operating profit declined 18% in constant currency to $711 million, slightly exceeding internal targets.
Shares of General Mills slipped 0.8% in reaction to the report.
“Our primary goal in fiscal 2026 is to restore organic sales growth by investing in greater value, innovation, and product news for consumers,” said General Mills Chairman and CEO Jeff Harmening. “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.”
During the quarter, the company completed the divestiture of its U.S. yogurt business, generating a $1.05 billion gain that lifted reported operating profit by 108% to $1.7 billion and diluted EPS by 116% to $2.22.
By segment, North America Retail sales fell 13%, North America Pet rose 6% (including an 11-point contribution from the Whitebridge Pet Brands acquisition), North America Foodservice dropped 4%, and International sales increased 6%.
For fiscal 2026, General Mills expects organic net sales between -1% and +1%, with adjusted operating profit and diluted EPS projected to decline 10–15% in constant currency.
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