General Mills (GIS) Q2 2026 Financial Results Summary

General Mills (GIS) Q2 2026 Financial Results Summary

General Mills, Inc. (NYSE: GIS) released its fiscal 2026 second-quarter results on December 17, 2025. Here is a detailed summary of the financial performance and key metrics for the quarter ended November 23, 2025.

Key Highlights

• Net Sales
• Total net sales decreased by 7% to $4.9 billion compared to the same quarter last year.
• Organic net sales decreased by 1%, attributed primarily to unfavorable price realization and mix.

• Net sales were affected by 6 points from divestitures and acquisitions.

• Profitability Metrics

• Operating profit fell by 32% to $728 million.
• Adjusted operating profit decreased by 20% in constant currency to $848 million.

• Operating profit margin reduced by 560 basis points to 15%, and adjusted operating profit margin decreased by 290 basis points to 17.4%.

• Earnings Per Share (EPS)

• Diluted EPS was $0.78, down 45% from the prior year’s $1.42.

• Adjusted diluted EPS was $1.10, reflecting a 21% decrease in constant currency.

• Gross Margin

• Gross margin fell 210 basis points to 34.8% due to higher input costs, despite some offset from net price realization.

Segment Performance

• North America Retail
• Net sales decreased 13% to $2.9 billion, affected heavily by divestitures.
• Organic net sales were down by 3%.

• Operating profit decreased by 21% to $682 million.

• International

• Net sales increased by 6% to $729 million, with organic net sales up by 4%.

• Operating profit rose 19% to $28 million, an increase of 30% in constant currency.

• North America Pet

• Net sales rose 11% to $660 million.
• Organic net sales increased by 1%.

• Operating profit decreased by 12% to $123 million.

• North America Foodservice

• Net sales fell 8% to $582 million.
• Operating profit was down by 12% to $105 million.

Cash Flow, Dividends, and Share Repurchase

• Cash Flow Generation

• Operating cash flow totaled $1.2 billion for the six months, down from $1.8 billion a year ago.

• Dividend Information

• Dividends paid in the quarter amounted to $659 million, a decrease from $676 million in the prior year.

• Share Repurchase

• The Company repurchased $500 million in shares during the first six months, down from $600 million a year earlier.
• Average diluted shares outstanding decreased by 4% to 540 million.

Fiscal 2026 Outlook

• General Mills aims to restore organic net sales growth, targeting a decline of 1% to 1% for organic net sales in fiscal 2026.
• Adjusted operating profit and diluted EPS are expected to drop by 10 to 15% in constant currency.
• Free cash flow conversion is anticipated to be at least 95% of adjusted after-tax earnings.

In summary, General Mills reported a challenging second quarter with significant year-over-year declines in both net sales and profitability metrics, while striving to improve competitive positioning through investments and strategic initiatives. The outlook remains cautious yet optimistic, focusing on restoring growth through brand investment.