General Mills Reports Fiscal 2026 First-quarter Results

General Mills posts mixed Q1 FY2026 results, with strong divestiture gains and pet segment growth, while focusing on restoring volume-led sales amid cost and category challenges.

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In fiscal 2026, General Mills is investing in its brands to restore volume-driven organic net sales growth, with initiatives that touch all elements of the company's Remarkable Experience Framework: product, packaging, brand communication, omnichannel execution, and consumer value. These efforts are expected to result initially in improved pound growth and market share. The company expects to return to dollar growth after the initial price investment phase, as improved remarkability for consumers drives pound growth with favorable price/mix. The combination of these growth investments, divested earnings from the North American Yogurt divestitures, and normalization of corporate incentive expense is expected to be a headwind to operating profit and EPS in fiscal 2026, but position the company for stronger, more sustainable, and more profitable growth over the long term.

First Quarter Results Summary

Net sales were down 7 percent to $4.5 billion, including a 4-point headwind from the net impact of divestitures and acquisitions. Organic net sales were down 3 percent, driven primarily by unfavorable organic net price realization and mix reflecting price investments and unfavorable trade expense timing in North America Retail.

Gross Margin

Gross margin was down 90 basis points to 33.9 percent of net sales, driven primarily by higher input costs, partially offset by the favorable impact of net price realization and mix to gross margin, largely due to a product mix benefit from the North American Yogurt divestitures, as well as favorable mark-to-market effects. Adjusted gross margin was down 120 basis points to 34.2 percent of net sales, driven primarily by higher input costs, partially offset by the favorable impact of net price realization and mix to adjusted gross margin, including the product mix benefit from the yogurt divestitures.