General Mills, Inc. (NYSE: GIS), the company behind popular food brands like Cheerios and Pillsbury, is expected to report its first-quarter 2026 results on September 17, before the opening bell. The company is going through a rough patch, with shrinking sales volumes and margin pressures impacting its overall performance. Demand has remained sluggish recently as customers spend less on discretionary items and are increasingly favoring private labels, especially in categories like cereal and pet food.
Estimates
Wall Street analysts expect General Mills to report Q1 adjusted earnings of $0.82 per share on revenues of $4.52 billion, marking a decline from the prior-year quarter, when the company posted earnings of $1.07 per share and revenue of $4.85 billion. The weak estimates reflect uncertainties in the market and a general pullback in consumer spending. The report is scheduled for release on Wednesday, September 17, at 7:00 am ET.
General Mills’ shares have been on a losing streak, constantly underperforming the industry and the broad market. Recently, the stock approached its lowest levels in over a year, reflecting investor caution ahead of earnings. The consumer staples giant’s weak sales performance and the management’s cautious guidance have hurt investor sentiment recently.
Q4 EPS Beats
In the fourth quarter, net sales decreased 3% year-over-year to $4.56 billion, with organic sales dropping 3%. Earnings per share, on an adjusted basis, declined 27% annually to $0.74, in constant currency. Net earnings attributable to General Mills, including special items, were $294 million, down 47% from last year. Earnings, on a per-share basis, declined 46% YoY to $0.53. Earnings surpassed estimates, marking the 14th consecutive beat, while the top line matched the Street view.
From General Mills’ Q4 2025 Earnings Call:
“We started to invest in value in Q3 of last year with Pillsbury and Totino’s topped by really good advertising. And we like the results of that so much that we decided that we’d expand the value of investments we made in soup and cereal, and fruit snacks in the fourth quarter. And we saw the results there that we expected. And, so as we go into this year, we’re kind of just continuing the formula that we had in the fourth quarter, which is we said to expand some of the value investments on targeted businesses that we saw, but also, really importantly, backing that up by significant consumer news.”
Outlook
In a recent statement, the management said it expects organic sales to be down 1% to up 1% in fiscal 2026. Full-year adjusted earnings are expected to be down 10-15%, in constant currency, from the base of $4.21 earned in fiscal year 2025. General Mills’ organic sales have remained almost flat in recent quarters, with consumers turning increasingly value-conscious and shifting to cheaper private label brands, amid inflation pressures and economic uncertainties. At the same time, input cost inflation, unfavorable pricing mix, and supply chain inefficiencies continue to weigh on margins.
The average price of General Mills’ stock for the last 52 weeks is $59.54. On Tuesday, the shares traded slightly above $50 after opening the session flat. GIS has declined about 22% in the past six months.
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