General Mills (GIS) Q4 2026: Revenue Growth Amidst Losses — Cautiously Optimistic

General Mills, Inc. (NYSE: GIS) reported its fourth-quarter results for fiscal 2026, revealing a mixed performance characterized by modest revenue growth but significant operating losses. The company achieved net sales of $4.6 billion, reflecting an increase of 1% compared to the previous year. However, organic net sales remained flat, indicating challenges in underlying demand.

Key Findings

• Net Sales: Increased by $53.4 million or 1% YoY.
• Operating Loss: Totaled $2.1 billion, a stark contrast to an operating profit of $504 million in the same quarter last year.
• Diluted Loss Per Share: Reported at $3.74, compared to earnings of $0.53 per share last year.
• Adjusted Diluted EPS: Improved to $0.95, up 27% in constant currency.

Analyst View

This quarter presents a mixed bag for shareholders. While the revenue growth is a positive sign, the substantial operating loss and the shift from profit to loss per share raise concerns about the company's operational efficiency and market conditions. The reported operating loss was primarily driven by $1.8 billion in non-cash goodwill and brand intangible asset charges, alongside a $1.0 billion valuation loss related to the planned divestiture of the Brazil business. These factors overshadow the slight revenue growth and adjusted EPS improvement, leading to a cautious outlook.

Financial Metrics

• Net Sales: $4.6 billion (up 1% YoY)
• Operating Loss: $2.1 billion (compared to $504 million profit last year)
• Adjusted Operating Profit: $705 million, up 13% in constant currency
• Diluted Loss Per Share: $3.74 (compared to $0.53 last year)
• Adjusted Diluted EPS: $0.95, up 27% in constant currency

Dividend and Share Buyback

The Board of Directors declared a quarterly dividend of $0.61 per share, payable on August 3, 2026, to shareholders of record on July 10, 2026. This reflects the company's commitment to returning value to shareholders despite the current operational challenges. However, share repurchase activity decreased to $500 million from $1.2 billion in the previous year, indicating a more cautious approach to capital allocation.

Guidance and Future Catalysts

Looking ahead, General Mills aims to improve organic growth and operational efficiency, targeting $3 billion in cumulative cost savings by fiscal 2030. For fiscal 2027, the company expects organic net sales to range between a decline of 1.5% and an increase of 0.5%. Adjusted operating profit is anticipated to decrease by 13% to 8% in constant currency from the $2.8 billion reported in fiscal 2026.

Investors should closely monitor the company's progress in executing its cost-saving initiatives and the impact of product innovation on organic sales growth. The upcoming quarters will be critical in assessing whether General Mills can navigate the current challenges and restore profitable growth.

In summary, while the revenue growth is a positive indicator, the significant losses and operational challenges suggest a cautious stance for shareholders moving forward.

Here are the extracted tables from the press release:

Consolidated Statements of (Loss) Earnings and Supplementary Information

(Amounts in Millions)

Note: The amounts in the following tables are in thousands/millions.

	Quarter Ended May 31, 2026	Quarter Ended May 25, 2025	% Change
Net sales	$4,609.6	$4,556.2	1%
Cost of sales	$3,006.1	$3,082.2	-2%
Selling, general, and administrative expenses	$888.1	$894.3	-1%
Restructuring, transformation, impairment and other exit costs	$2,808.0	$75.7	NM
Operating (loss) profit	$-2,092.6	$504.0	NM
Benefit plan non-service income	$-12.2	$-12.8	-5%
Interest, net	$151.5	$139.7	8%
(Loss) earnings before income taxes and after-tax loss from joint ventures	$-2,231.9	$377.1	NM
Income taxes	$-240.4	$69.1	NM
After-tax loss from joint ventures	$-17.6	$-6.0	193%
Net (loss) earnings, including earnings attributable to noncontrolling interests	$-2,009.1	$302.0	NM
Net (loss) earnings attributable to General Mills	$-2,007.9	$294.0	NM
(Loss) earnings per share – basic	$-3.74	$0.53	NM
(Loss) earnings per share – diluted	$-3.74	$0.53	NM

Consolidated Balance Sheets

(Amounts in Millions)

ASSETS	May 31, 2026	May 25, 2025
Cash and cash equivalents	$453.8	$363.9
Receivables	$1,646.8	$1,795.9
Inventories	$1,917.9	$1,910.8
Prepaid expenses and other current assets	$599.8	$464.7
Assets held for sale	—	$740.4
Total current assets	$4,618.3	$5,275.7
Land, buildings, and equipment	$3,443.4	$3,632.6
Goodwill	$14,122.4	$15,622.4
Other intangible assets	$6,716.9	$7,081.4
Other assets	$1,115.7	$1,459.0
Total assets	$30,016.7	$33,071.1

LIABILITIES AND EQUITY	May 31, 2026	May 25, 2025
Accounts payable	$3,729.5	$4,009.5
Current portion of long-term debt	$1,053.6	$1,528.4
Notes payable	$68.4	$677.0
Other current liabilities	$1,472.8	$1,624.0
Liabilities held for sale	$449.8	$18.4
Total current liabilities	$6,774.1	$7,857.3
Long-term debt	$12,416.0	$12,673.2
Deferred income taxes	$2,265.8	$2,100.8
Other liabilities	$1,180.2	$1,228.6
Total liabilities	$22,636.1	$23,859.9
Common stock, 754.6 shares issued, par value	$75.5	$75.5
Additional paid-in capital	$1,200.9	$1,218.8
Retained earnings	$20,514.9	$21,917.8
Common stock in treasury	$-11,900.6	$-11,467.9
Accumulated other comprehensive loss	$-2,522.3	$-2,545.0
Total stockholders’ equity	$7,368.4	$9,199.2
Noncontrolling interests	$12.2	$12.0
Total equity	$7,380.6	$9,211.2
Total liabilities and equity	$30,016.7	$33,071.1

These tables maintain the formatting and original data as outlined in the press release.

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