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Aug 24
General Mills Q1 2026 Earnings Report
General Mills reported its Q1 2026 earnings, with net income more than doubling due to a significant gain from the U.S. yogurt business divestiture.
Key Takeaways
Despite a decline in organic sales and adjusted earnings, General Mills beat expectations on adjusted operating profit and reported a strong net income increase driven by divestiture gains.
Net income rose 108% to $1.2 billion due to a $1.05 billion divestiture gain.
Organic net sales declined 3%, impacted by price investments and timing.
Adjusted EPS fell 20% to $0.86, slightly ahead of internal expectations.
Gross margin compressed by 90 basis points to 33.9% due to higher input costs.
General Mills
General Mills
General Mills Revenue by Segment
General Mills Revenue by Geographic Location
Revenue by Segment
North America Retail Revenue
CapyFin.comNorth America Pet Revenue
CapyFin.comNorth America Foodservice Revenue
CapyFin.comInternational Revenue
CapyFin.comRevenue by Geographic Location
United States Revenue
CapyFin.comInternational Revenue
CapyFin.com Forward Guidance
General Mills reaffirmed its FY26 outlook, expecting EPS and operating profit to decline due to cost pressures and divestitures, while focusing on long-term growth through innovation and pricing strategy.
Positive Outlook
- Reaffirmed full-year targets despite Q1 headwinds.
- Plans to drive pound growth with price investment strategy.
- Blue Buffalo entering U.S. fresh pet food market in Q2.
- Efficiency initiatives expected to deliver $100M in savings.
- Expected 53rd week in fiscal 2026 to support full-year performance.
Challenges Ahead
- Adjusted EPS and operating profit expected to decline 10–15%.
- Organic net sales may range from -1% to +1%.
- Divestitures will reduce operating profit by 5 points.
- Cost inflation and tariff pressures remain elevated.
- Normalization of incentive expense will weigh on margins.
Revenue & Expenses
Visualization of income flow from segment revenue to net income