General Mills Inc (NYSE:GIS, XETRA:GRM) shares fell more than 7% on Tuesday after the consumer packaged goods company downwardly revised its 2026 outlook, citing weaker-than-expected consumer demand and heightened market uncertainty.
The maker of Cheerios, Yoplait, and other major brands now expects organic net sales to decline 1.5% to 2% for the full year, compared with its prior forecast of a 1% decline to 1% growth.
Adjusted operating profit and adjusted diluted earnings per share are projected to fall 16% to 20% in constant currency, steeper than the previous guidance of a 10% to 15% decline.
Free cash flow conversion is still expected to reach at least 95% of adjusted after-tax earnings.
The company attributed the revision to weaker consumer sentiment, ongoing volatility, and higher costs of volume recovery, which have slowed category growth and affected purchase patterns.
General Mills executives presented the updated guidance at the Consumer Analyst Group of New York Conference, where they also outlined the company’s Accelerate strategy and initiatives aimed at driving long-term sustainable growth.
Chairman and CEO Jeff Harmening noted the company has reshaped nearly a third of its portfolio, enhanced digital capabilities, and improved cost efficiency.
“Amid a volatile operating environment, we remain focused on what we can control by executing our Remarkability playbook,” Harmening said in a statement, adding that these efforts aim to strengthen the competitiveness of the company’s global brands.