General Mills Inc (NYSE:GIS, XETRA:GRM) reported better-than-expected quarterly sales and earnings, driven by steady demand for at-home food products as consumers continued to limit restaurant spending amid elevated prices and economic uncertainty.
The maker of Cheerios cereal and Pillsbury baking products reported fiscal second quarter net sales of $4.86 billion, topping analysts’ expectations of $4.78 billion.
This was down 7%, reflecting the impact of recent divestitures, including its North American yogurt business.
Adjusted earnings per share came in at $1.10, above the consensus estimate of $1.02.
“Our team continued to execute exceptionally well in a volatile operating environment, delivering results ahead of our expectations in the second quarter,” General Mills CEO Jeff Harmening said in a statement.dle
He added that investments aimed at improving brand visibility and competitiveness were beginning to restore volume growth in North America retail.
General Mills reaffirmed its full-year fiscal 2026 outlook for the second time this year.
The company continues to expect organic net sales to range between a 1% decline and 1% growth, while adjusted operating profit and adjusted diluted EPS are forecast to fall 10% to 15% in constant currency.
Management said ongoing investments in innovation, brand building, and consumer value are expected to weigh on near-term profitability but position the company for more sustainable growth over the longer term.
Jefferies analysts repeated their 'Hold' rating and $47 price target on General Mills following its report, noting the Q2 beat came amid an increasing cost of volume growth.
"GIS posted a fiscal Q2 beat down the P&L, though management noted expectations for a Q3 profit unwind after outperformance in Q2," they wrote. "Management did highlight an increasing cost of volume growth as stressed low-middle income consumers are purchasing more on promo; however, they reiterated the fiscal 2026 guide and expectations for a return to dollar growth in H2."
Shares of General Mills were set to open 1.3% higher at about $48 on Wednesday.