• Company reaffirms full-year fiscal 2026 outlook
• As expected, third-quarter and nine-month results included significant impacts from investments to improve brand remarkability, the North American yogurt divestitures, and an unfavorable trade expense timing comparison
• Net sales of $4.4 billion were down 8 percent, including a 6-point headwind from the net impact of divestitures and acquisitions; organic net sales¹ were down 3 percent
• Operating profit of $525 million was down 41 percent; adjusted operating profit of $547 million was down 32 percent in constant currency
• Diluted earnings per share (EPS) of $0.56 were down 50 percent; adjusted diluted EPS of $0.64 was down 37 percent in constant currency

¹Please see Note 7 to the Consolidated Financial Statements below for reconciliation of this and other non-GAAP measures used in this release.

MINNEAPOLIS -- (Business Wire)

General Mills, Inc. (NYSE: GIS) today reported results for its third quarter ended February 22, 2026.

“We’re reaffirming our fiscal 2026 guidance today, as our focus on executing our Remarkability playbook continued to deliver stronger competitiveness for our brands in the third quarter,” said General Mills Chairman and Chief Executive Officer Jeff Harmening. “We started the year expecting that our investments, divestitures, and unfavorable timing comparisons would drive declines in our sales and earnings results through our first three quarters, even as we improved our volume and market share. And that’s what we’ve seen play out. As we move to the fourth quarter, we expect to deliver a step up in organic sales trends and return to earnings growth, driven by favorable timing comparisons, the 53rd week, and our continued market share momentum. And as we look ahead to fiscal 2027, with our price investment work behind us, we are confident in our ability to deliver improved organic sales results while continuing to generate industry-leading cost efficiency through our Holistic Margin Management program and our global Transformation initiative.”

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. This includes strong innovation plans as well as investments to adjust base prices across a large portion of the U.S. retail portfolio, which are already driving initial improvement in pound trends and volume share. The Company expects to return to dollar growth after the initial price investment phase, when improved remarkability for consumers will drive stronger volume and favorable price/mix. With a stronger foundation of brand remarkability, General Mills believes it is better positioned to deliver stronger, more sustainable, and more profitable growth over the long term.

Third Quarter Results Summary

• Net sales were down 8 percent to $4.4 billion, including a 6-point headwind from the net impact of divestitures and acquisitions and a 1-point benefit from foreign currency exchange. Organic net sales were down 3 percent, driven by lower organic pound volume and unfavorable organic net price realization and mix, and trailed Nielsen-measured global retail sales results by approximately 1.5 points.
• Gross margin was down 310 basis points to 30.8 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, including the product mix benefit from the North American Yogurt divestitures. Adjusted gross margin was down 280 basis points to 30.6 percent of net sales, driven by higher input costs, partially offset by the favorable impact of net price realization and mix to gross margin, including the product mix benefit from the yogurt divestitures.
• Operating profit of $525 million was down 41 percent, driven primarily by lower gross profit dollars in fiscal 2026 and a divestiture gain in the prior-year period. Operating profit margin of 11.8 percent was down 660 basis points. Adjusted operating profit of $547 million was down 32 percent in constant currency, driven by lower adjusted gross profit dollars. Adjusted operating profit margin was down 420 basis points to 12.3 percent.
• Net earnings attributable to General Mills of $303 million were down 52 percent and diluted EPS was down 50 percent to $0.56, driven primarily by lower operating profit, lower after-tax earnings from joint ventures, and a higher effective tax rate, partially offset by lower net shares outstanding. Adjusted diluted EPS of $0.64 was down 37 percent in constant currency, driven primarily by lower adjusted operating profit and a higher adjusted effective tax rate, partially offset by lower net shares outstanding.

Nine Month Results Summary

• Net sales of $13.8 billion were down 7 percent, including a 5-point headwind from the net impact of divestitures and acquisitions and a 1-point benefit from foreign currency exchange. Organic net sales were down 3 percent.
• Gross margin was down 200 basis points to 33.2 percent of net sales, driven by higher input costs, partially offset by the favorable impact of net price realization and mix to gross margin, including the product mix benefit from the yogurt divestitures. Adjusted gross margin was down 190 basis points to 33.2 percent of net sales.
• Operating profit of $3.0 billion was up 6 percent, driven primarily by a $1.0 billion gain on divestitures, partially offset by lower gross profit dollars and higher restructuring, transformation, impairment, and other exit costs. Operating profit margin of 21.6 percent was up 280 basis points. Adjusted operating profit of $2.1 billion was down 23 percent in constant currency, driven by lower adjusted gross profit dollars. Adjusted operating profit margin was down 310 basis points to 15.2 percent.
• Net earnings attributable to General Mills of $1.9 billion were down 4 percent and diluted EPS was in line with last year at $3.56, with higher operating profit and lower net shares outstanding offset by a higher effective tax rate and lower after-tax earnings from joint ventures. Adjusted diluted EPS of $2.60 was down 25 percent in constant currency, driven primarily by lower adjusted operating profit and a higher adjusted effective tax rate, partially offset by lower net shares outstanding.

Operating Segment Results

• The following transactions impacted the comparability of year-to-date financial results between fiscal 2025 and fiscal 2026: the divestiture of the U.S. Yogurt business in the first quarter of fiscal 2026, the divestiture of the Canada Yogurt business in the third quarter of fiscal 2025, and the acquisition of the North American Whitebridge Pet Brands business in the third quarter of fiscal 2025.
• Tables may not foot due to rounding.

North America Retail Segment

Third-quarter net sales for General Mills’ North America Retail segment were down 14 percent to $2.6 billion, including a 9-point headwind from the North American Yogurt divestitures. Net sales were down double digits for the Big G Cereal & Canada operating unit, including the impact of the yogurt divestitures, down high-single digits for U.S. Snacks, and down low-single digits for U.S. Meals & Baking Solutions. Organic net sales were down 4 percent while Nielsen-measured retail sales were down 3 percent, with the 1-point gap reflecting changes in retailer inventory. Increased consumer value, innovation, and product news drove strong pound competitiveness in the quarter, with the segment holding or gaining pound share in 7 of its top 10 U.S. categories. Retail sales growth and market share in pounds were stronger than in dollars in the quarter, as expected, due to investments to address key price cliffs and price gaps in selected categories. Segment operating profit of $436 million was down 33 percent as reported and in constant currency, due primarily to lower volume, including the impact of the yogurt divestitures, and higher input costs, partially offset by favorable net price realization and mix and lower selling, general, and administrative (SG&A) expenses.

Through nine months, North America Retail segment net sales were down 13 percent to $8.1 billion, including a 9-point headwind from divestitures. Organic net sales were down 4 percent. Segment operating profit of $1.7 billion was down 25 percent as reported and in constant currency, due primarily to lower volume, including the impact of the yogurt divestitures, and higher input costs, partially offset by favorable net price realization and mix and lower SG&A expenses.

North America Pet Segment

Third-quarter net sales for the North America Pet segment were up 3 percent to $640 million, including a 6-point benefit from the North American Whitebridge Pet Brands acquisition. Net sales were up double digits for cat food, up mid-single digits for pet treats, and down mid-single digits for dog food. Organic net sales were down 3 percent and all-channel retail sales were up approximately 2 percent, with the 5-point gap driven largely by changes in retailer inventory. The segment maintained its competitiveness, with all-channel dollar share flat in the quarter. Segment operating profit of $103 million was up 1 percent as reported and essentially matched year-ago results in constant currency.

Through nine months, North America Pet segment net sales were up 6 percent to $1.9 billion, including a 9-point benefit from the North American Whitebridge Pet Brands acquisition. Organic net sales were down 2 percent and lagged all-channel retail sales growth by approximately 3 points. Segment operating profit was down 6 percent to $339 million, driven by higher input costs and higher SG&A expenses, including investments to support the launch of Love Made Fresh, partially offset by favorable net price realization and mix and higher volume.

North America Foodservice Segment

Third-quarter net sales for the North America Foodservice segment were down 11 percent to $496 million, including a 7-point headwind from the yogurt divestitures. Organic net sales were down 3 percent, driven primarily by a decline on bakery flour, including a 1-point headwind from index pricing. Segment operating profit was down 32 percent to $56 million, driven by unfavorable net price realization and mix and lower volume, including the impact of the yogurt divestitures, and higher input costs.

Through nine months, North America Foodservice net sales were down 7 percent to $1.6 billion, including a 6-point headwind from the yogurt divestitures. Organic net sales were down 1 percent, including a 2-point headwind from index pricing on bakery flour. The segment held or gained dollar share in nearly 90 percent of its priority businesses on a year-to-date basis, driven by gains in healthcare, colleges and universities, and lodging channels. Segment operating profit was down 15 percent to $232 million, driven by the headwind from the yogurt divestitures.

International Segment

Third-quarter net sales for the International segment increased 7 percent to $696 million, including a 6-point benefit from foreign currency exchange. Organic net sales were up 1 percent, driven by growth in India and China, partially offset by a decline in Europe. Segment operating profit of $34 million was up 87 percent as reported and up 82 percent in constant currency, driven by favorable net price realization and mix, lower SG&A expenses, and higher volume, partially offset by higher input costs.

Through nine months, International net sales were up 6 percent to $2.2 billion, including a 4-point benefit from foreign currency exchange. Organic net sales were up 3 percent. The segment held or gained dollar share in nearly 40 percent of its priority businesses through nine months. Segment operating profit more than doubled to $128 million, driven primarily by favorable net price realization and mix, partially offset by higher input costs and higher SG&A expenses.

Joint Venture Summary

Third-quarter constant-currency net sales were down 4 percent for Cereal Partners Worldwide (CPW) and up 3 percent for Häagen-Dazs Japan (HDJ). Combined after-tax loss from joint ventures totaled $6 million in the quarter, compared to earnings of $14 million in the prior year, driven primarily by the Company’s share of transaction costs related to certain assets held for sale at CPW.

Other Income Statement Items

Third-quarter unallocated corporate items totaled $75 million net expense in fiscal 2026 compared to $56 million net expense a year ago (please see Note 4 below for more information on these expenses). Excluding mark-to-market valuation effects and other items affecting comparability, unallocated corporate items totaled $82 million net expense this year compared to $50 million net expense a year ago.

Restructuring, transformation, impairment, and other exit costs totaled $24 million of net expense in the third quarter compared to $1 million of net recoveries a year ago (please see Note 3 below for more information on these charges).

Net interest expense totaled $128 million in the third quarter compared to $136 million a year ago. The effective tax rate in the quarter was 24.3 percent compared to 19.8 percent last year (please see Note 6 below for more information on our effective tax rate). The third-quarter adjusted effective tax rate was 24.0 percent compared to 21.0 percent a year ago, driven primarily by certain non-recurring discrete tax benefits in fiscal 2025 and unfavorable earnings mix by jurisdiction in fiscal 2026.

Cash Flow Generation and Cash Returns

Cash provided by operating activities totaled $1.6 billion through nine months of fiscal 2026 compared to $2.3 billion a year ago, driven primarily by lower net earnings excluding the pre-tax gain on divestitures, partially offset by changes in deferred taxes, after-tax joint venture earnings, and restructuring, transformation, impairment, and other exit costs. Capital investments totaled $356 million compared to $405 million a year ago. Dividends paid totaled $987 million compared to $1,008 million a year ago. The Company’s share repurchase activity through nine months of fiscal 2026 totaled $500 million compared to $902 million in share repurchases a year ago. Average diluted shares outstanding through nine months decreased 4 percent to 539 million.

Fiscal 2026 Outlook

General Mills’ top priority is to restore volume-driven organic net sales growth over the long term. For fiscal 2026, the Company expects category growth to be below its long-term projections, reflecting less benefit from price/mix amid a continued challenging consumer backdrop. To strengthen its categories and market share performance, the Company is increasing investment in consumer value, product news, innovation, and brand building, guided by its Remarkable Experience Framework. This includes a significant strategic investment to launch Blue Buffalo into the fast-growing U.S. fresh pet food sub-category.

On an annual basis, the Company expects the combination of significant growth investments, input cost inflation (including the impact of tariffs), and normalization of corporate incentive expense will outpace its expectation for Holistic Margin Management cost savings of 5 percent of cost of goods sold, $100 million in global transformation and other efficiency savings, and benefits from a 53rd week in fiscal 2026. Additionally, the Company expects the net impact of the North American Yogurt divestitures and the North American Whitebridge Pet Brands acquisition will reduce adjusted operating profit growth by approximately 5 points in fiscal 2026.

On a quarterly basis, the combination of growth investments, divested earnings from the North American Yogurt divestitures, and certain unfavorable timing comparisons was a significant headwind to net sales, operating profit, and EPS in the first three quarters of fiscal 2026. The Company expects benefits from the 53rd week, favorable timing comparisons, and continued strong competitiveness to drive significant sequential improvement in net sales, operating profit, and EPS performance in the fourth quarter.

Based on the above assumptions, the Company reaffirmed its full-year fiscal 2026 financial targets²:

• Organic net sales are expected to be down 1.5 to 2 percent.
• Adjusted operating profit and adjusted diluted EPS are both expected to be down 16 to 20 percent in constant currency.
• Free cash flow conversion is expected to be at least 95 percent of adjusted after-tax earnings.
• The net impact of divestitures, acquisitions, foreign currency exchange, and the 53rd week is expected to reduce full-year net sales growth by approximately 4 percent. Foreign currency exchange is not expected to have a material impact on adjusted operating profit or adjusted diluted EPS growth.

^²Financial targets are provided on a non-GAAP basis because certain information necessary to calculate comparable GAAP measures is not available. Please see Note 7 to the Consolidated Financial Statements below for discussion of the unavailable information.

General Mills will issue pre-recorded management remarks today, March 18, 2026, at approximately 6:30 a.m. Central time (7:30 a.m. Eastern time) and will hold a live, webcasted question and answer session beginning at 8:00 a.m. Central time (9:00 a.m. Eastern time). The pre-recorded remarks and the webcast will be made available at www.generalmills.com/investors.

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are based on our current expectations and assumptions. These forward-looking statements, including the statements under the caption “Fiscal 2026 Outlook,” and statements made by Mr. Harmening, are subject to certain risks and uncertainties that could cause actual results to differ materially from the potential results discussed in the forward-looking statements. In particular, our predictions about future net sales and earnings could be affected by a variety of factors, including: imposed and threatened tariffs by the United States and its trading partners; disruptions or inefficiencies in the supply chain; competitive dynamics in the consumer foods industry and the markets for our products, including new product introductions, advertising activities, pricing actions, and promotional activities of our competitors; economic conditions, including changes in inflation rates, interest rates, tax rates, tariffs, or the availability of capital; product development and innovation; consumer acceptance of new products and product improvements; consumer reaction to pricing actions and changes in promotion levels; acquisitions or dispositions of businesses or assets; changes in capital structure; changes in the legal and regulatory environment, including tax legislation, labeling and advertising regulations, and litigation; impairments in the carrying value of goodwill, other intangible assets, or other long-lived assets, or changes in the useful lives of other intangible assets; changes in accounting standards and the impact of critical accounting estimates; product quality and safety issues, including recalls and product liability; changes in consumer demand for our products; effectiveness of advertising, marketing, and promotional programs; changes in consumer behavior, trends, and preferences, including weight loss trends; consumer perception of health-related issues, including obesity; consolidation in the retail environment; changes in purchasing and inventory levels of significant customers; fluctuations in the cost and availability of supply chain resources, including raw materials, packaging, energy, and transportation; effectiveness of restructuring, transformation and cost saving initiatives; volatility in the market value of derivatives used to manage price risk for certain commodities; benefit plan expenses due to changes in plan asset values and discount rates used to determine plan liabilities; failure or breach of our information technology systems; foreign economic conditions, including currency rate fluctuations; and political unrest in foreign markets and economic uncertainty due to terrorism or war. The Company undertakes no obligation to publicly revise any forward-looking statement to reflect any future events or circumstances.

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Significant Items Impacting Comparability

Several measures below are presented on an adjusted basis. The adjustments are either items resulting from infrequently occurring events or items that, in management’s judgment, significantly affect the year-to-year assessment of operating results.

The following are descriptions of significant items impacting comparability of our results.

Divestitures loss (gain), net

Net divestitures gain recorded in fiscal 2026 primary related to the sale of our United States yogurt business in fiscal 2026 and Canada yogurt business in fiscal 2025. Divestiture gain related to the sale of our Canada yogurt business recorded in fiscal 2025. Please see Note 2.

CPW asset impairments, transaction costs, and restructuring charges

CPW non-cash goodwill impairment charge related to the Australian market, and other asset impairment charges and transaction costs related to certain assets held for sale recorded in fiscal 2026. CPW restructuring charges related to previously announced restructuring actions in fiscal 2025.

Restructuring and transformation charges (recoveries)

Restructuring and transformation charges related to supply chain actions and previously announced actions recorded in fiscal 2026. Restructuring charges (recoveries) related to previously announced restructuring actions recorded in fiscal 2025. Please see Note 3.

Other intangible assets impairment

Non-cash impairment charge related to our Uncle Toby’s brand intangible asset in fiscal 2026. Please see Note 3.

Transaction costs

Fiscal 2026 transaction costs primarily related to the sale of our United States yogurt business. Fiscal 2025 transaction costs related to the Whitebridge Pet Brands acquisition and the sale of our North American yogurt businesses. Please see Note 2.

Mark-to-market effects

Net mark-to-market valuation of certain commodity positions recognized in unallocated corporate items. Please see Note 4.

Investment activity, net

Valuation adjustments of certain corporate investments in fiscal 2026 and fiscal 2025. Please see Note 4.

Acquisition integration costs

Integration costs related to the Whitebridge Pet Brands acquisition in fiscal 2025 and the acquisition of a pet food business in Europe in fiscal 2024 recorded in fiscal 2026 and fiscal 2025. Please see Note 2.

Project-related costs

Restructuring initiative project-related costs related to previously announced restructuring actions recorded in fiscal 2025.

Adjusted Operating Profit Growth and Related Constant-currency Growth Rate

This measure is used in reporting to our Board of Directors and executive management and as a component of the measurement of our performance for incentive compensation purposes. We believe that this measure provides useful information to investors because it is the operating profit measure we use to evaluate operating profit performance on a comparable year-to-year basis. The measure is evaluated on a constant-currency basis by excluding the effect that foreign currency exchange rate fluctuations have on year-to-year comparability given the volatility in foreign currency exchange rates. 

Our adjusted operating profit growth on a constant-currency basis is calculated as follows:

Adjusted Diluted EPS and Related Constant-currency Growth Rate

This measure is used in reporting to our Board of Directors and executive management. We believe that this measure provides useful information to investors because it is the profitability measure we use to evaluate earnings performance on a comparable year-to-year basis.

The reconciliation of our GAAP measure, diluted EPS, to adjusted diluted EPS and the related constant-currency growth rates follows:

Adjusted Earnings Comparisons as a Percent of Net Sales

We believe that these measures provide useful information to investors because they are important for assessing our adjusted earnings comparisons as a percent of net sales on a comparable year-to-year basis.

Our adjusted earnings comparisons as a percent of net sales are calculated as follows: