General Mills (GIS) Q1 2026 Financial Results Summary

# General Mills, Inc. (GIS) Q1 2026 Financial Results Summary

General Mills, Inc. (NYSE: GIS) released its Q1 2026 financial results on September 17, 2025. Below is a summary of the key financial metrics and performance highlights:

## Key Financial Metrics
– **Net Sales**:
– Total: **$4.5 billion**, a **7% decrease** compared to Q1 2025.
– Organic Net Sales: Decreased by **3%** (adjusted for divestitures and acquisitions, driven primarily by unfavorable price realizations).

– **Operating Profit**:
– Total Operating Profit: **$1.7 billion**, representing a **108% increase** compared to Q1 2025 (includes $1.05 billion gain from the U.S. yogurt business divestiture).
– Adjusted Operating Profit: **$711 million**, down **18%** when adjusted for constant currency.

– **Earnings Per Share (EPS)**:
– Diluted EPS: **$2.22**, up **116%** from **$1.03** in Q1 2025.
– Adjusted Diluted EPS: **$0.86**, down **20%** in constant currency.

– **Gross Margin**:
– **33.9%** of net sales, down **90 basis points** year-over-year.
– Adjusted Gross Margin: **34.2%**, down **120 basis points**.

– **Net Earnings**:
– **$1.2 billion**, an increase of **108%** compared to Q1 2025.

– **Operating Margin**:
– Total Operating Margin: **38.2%**, an increase of **2,100 basis points**.
– Adjusted Operating Margin: **15.7%**, down **210 basis points**.

– **Effective Tax Rate**:
– Reported: **25.6%**, an increase from **21.8%** in Q1 2025.
– Adjusted: **24.1%**, up from **21.9%**.

– **Cash Flow**:
– Cash from Operating Activities: **$397 million**, down from **$624 million** year-over-year.
– Capital Investments: **$110 million**, down from **$140 million**.

## Segment Performance
– **North America Retail**:
– Net Sales: **$2.6 billion**, a **13% decrease**.
– Operating Profit: **$564 million**, down **24%**.

– **International**:
– Net Sales: **$760 million**, up **6%**.
– Operating Profit: **$66 million**, an increase of **214%**.

– **North America Pet**:
– Net Sales: **$610 million**, a **6% increase**.
– Operating Profit: **$113 million**, a decline of **5%**.

– **North America Foodservice**:
– Net Sales: **$517 million**, a **4% decrease**.
– Operating Profit: **$71 million**, approximately unchanged.

## Shareholder Returns
– **Dividends Paid**: Totalled **$331 million**, slightly down from **$338 million** in Q1 2025.
– **Share Repurchase Activity**: **$500 million** in shares repurchased, compared to **$300 million** in the previous year.

## Outlook for Fiscal 2026
– General Mills expects organic net sales to range between a **1% decrease** and a **1% increase** for the full year.
– Adjusted operating profit and adjusted diluted EPS are anticipated to be down **10% to 15%** in constant currency.
– The company aims to maintain free cash flow conversion at least at **95%** of adjusted after-tax earnings.
– Acknowledged that the net impact of divestitures, acquisitions, currency exchange, and a potential 53rd week will reduce full-year net sales growth by **approximately 4%**.

General Mills’ management emphasized efforts to restore organic sales growth through strategic investments in innovation, consumer value, and brand communication as the primary goal for fiscal 2026.

### Conclusion
In summary, General Mills, Inc. displayed substantial overall profit growth stemming from the divestiture gains despite a decline in net sales. The company remains focused on strategic initiatives for enhancing sales and shareholder returns moving forward into the fiscal year.

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### Consolidated Statements of Earnings and Supplementary Information
*(In Millions, Except per Share Data)*

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### Consolidated Balance Sheets
*(In Millions, Except Par Value)*

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