General Mills Inc (NYSE:GIS, ETR:GRM) reported first quarter fiscal 2026 results that exceeded Wall Street expectations on both revenue and earnings per share and reaffirmed its full-year guidance.
The consumer foods manufacturer, whose brands include Betty Crocker, Nature Valley, and Cheerios, reported revenue of $4.52 billion, slightly above analyst estimates of $4.51 billion, though down 6.8% from the prior year.
Net sales declined 7% to $4.5 billion, including a four-point headwind from divestitures and acquisitions, while organic net sales were down 3%.
Adjusted EPS was $0.86, topping the consensus estimate of $0.82 but declining 20% in constant currency compared with last year.
Reported GAAP EPS was $2.22, up 116% from $1.03 a year earlier, reflecting higher operating profit, including a $1.05 billion gain from the US yogurt divestiture.
“Our primary goal in fiscal 2026 is to restore organic sales growth by investing in greater value, innovation, and product news for consumers,” General Mills CEO Jeff Harmening said in a statement.
“I’m pleased that we’re seeing the returns we expected on these investments, helping us grow or hold pound share in 8 of our top 10 US categories while continuing to drive strong competitiveness in foodservice and international markets in the first quarter."
General Mills reaffirmed its fiscal 2026 guidance, projecting organic net sales between down 1% and up 1%.
The company expects adjusted operating profit and adjusted EPS to decline between 10% and 15% in constant currency for the full year.
Free cash flow conversion is anticipated to be at least 95% of adjusted after-tax earnings.
Shares of General Mills edged 0.4% lower to about $49 post-earnings.