GIS Reports Q1 2026 Adjusted EPS of $0.86, Reaffirms Full-Year Outlook

General Mills (GIS.US) reported adjusted diluted EPS of $0.86 for the first quarter of fiscal 2026, which was slightly ahead of analyst estimates of $0.81. Net sales for the quarter reached $4.5 billion, a decrease of 7% compared to the previous year, and fell short of the analyst estimate of $4.515 billion. The company reaffirmed its full-year fiscal 2026 financial targets, with organic net sales expected to range between down 1% and up 1%.

Key Business Drivers

Organic net sales were down 3%, primarily driven by unfavorable organic net price realization and mix, reflecting price investments and unfavorable trade expense timing in North America Retail. The North America Retail segment saw net sales decrease by 13% to $2.6 billion, including an 8-point headwind from the North American Yogurt divestitures.

Conversely, the International segment’s net sales increased by 6% to $760 million, benefiting from a 3-point foreign currency exchange impact. Organic net sales for the International segment were up 4%, driven by growth in India, North Asia, and Europe.

Management Outlook

General Mills’ primary goal for fiscal 2026 is to restore volume-driven organic net sales growth by investing in greater value, innovation, and product news for consumers. The company expects these efforts to initially result in improved pound growth and market share, with a return to dollar growth anticipated after the initial price investment phase.

The company projects that a combination of growth investments, input cost inflation, and normalization of corporate incentive expense will outpace its cost savings initiatives. The net impact of divestitures and acquisitions is expected to reduce adjusted operating profit growth by approximately 5 points in fiscal 2026.