General Mills, Inc. ($GIS) Stock: Q1 Results Beat Estimates but Sales Decline

TLDR

GIS closed at $49.18 on Sept. 17, down 0.77% after Q1 results. Q1 net sales fell 7% to $4.5B, with organic sales down 3%. Adjusted EPS of $0.86 topped estimates but dropped 20% YoY. CEO Jeff Harmening highlights innovation and pet food launch. Full-year outlook reaffirmed, but tariffs seen as a key risk.

General Mills, Inc. ($GIS) closed at $49.18 on September 17, 2025, following the release of its fiscal first-quarter 2026 results.

General Mills, Inc. (GIS)

The company reported revenue of $4.5 billion, down 7% from last year, and adjusted earnings per share (EPS) of $0.86, which was 20% lower year over year but ahead of analyst estimates of $0.81. Reported diluted EPS surged 116% to $2.22, driven by a $1.05 billion gain from the U.S. yogurt divestiture.

Operating profit more than doubled to $1.7 billion, while adjusted operating profit fell 18% in constant currency to $711 million. Gross margin declined 90 basis points to 33.9% of net sales due to higher input costs, while adjusted gross margin fell 120 basis points to 34.2%.

Segment Performance

In North America Retail, net sales dropped 13% to $2.6 billion, including an 8-point headwind from yogurt divestitures. Organic sales were down 5%, and segment operating profit declined 24% to $564 million. Despite this, the company gained or held pound share in eight of its top ten U.S. categories.

North America Pet revenue rose 6% to $610 million, helped by the Whitebridge Pet Brands acquisition, though organic sales slipped 5%. Operating profit decreased 5% to $113 million as the company invested in marketing and product innovation, including the fresh pet food rollout.

In Foodservice, sales fell 4% to $517 million, but organic sales rose 1% thanks to strong cereal and biscuit performance. International sales climbed 6% to $760 million, with organic growth of 4%, led by India, North Asia, and Europe. Operating profit improved to $66 million from $21 million a year earlier.

Strategic Initiatives

CEO Jeff Harmening stressed the company’s focus on restoring organic growth through innovation, advertising campaigns, and in-store events. A key initiative is Blue Buffalo’s launch into the U.S. fresh pet food market, which is set to expand in the second quarter.

General Mills continues to pursue efficiency through its Holistic Margin Management program and a global transformation initiative, targeting $100 million in savings. These savings are expected to offset some of the headwinds from tariffs and higher input costs.

Fiscal 2026 Outlook

General Mills reaffirmed its full-year guidance, projecting organic net sales growth between -1% and +1%. Adjusted operating profit and EPS are expected to fall 10% to 15% in constant currency. The company warned that tariffs and higher input costs will pressure margins, but it expects long-term growth to improve with continued investment in brand innovation and market share expansion.

Performance Overview

GIS stock has struggled relative to the S&P 500. Year-to-date, shares are down 20.35%, while the index gained 12.22%. Over one year, GIS fell 31.25%, compared to the S&P 500’s 17.14% rise. The five-year return stands at just 1.10%, versus the index’s 96.61% growth.

 

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