General Mills (GIS) Q3 2026 Prepared Remarks earnings summary

Executive summary

• Fiscal Q3 net sales declined 8% to $4.4B, with organic net sales down 3% year-over-year, impacted by divestitures, supply chain disruptions, and investments in brand remarkability.

• Operating profit fell 41% to $525M, and adjusted operating profit dropped 32% in constant currency; adjusted diluted EPS was $0.64, down 37%.

• Retail sales trends improved versus Q2, but results were pressured by higher input costs, divestitures, and unfavorable trade expense timing.

• Weather-related supply chain disruptions and retailer inventory headwinds impacted Q3 but are expected to reverse in Q4.

• The company reaffirmed its full-year fiscal 2026 outlook, expecting sequential improvement in Q4 driven by favorable timing, a 53rd week, and market share momentum.

Financial highlights

• Q3 net sales: $4,437M, down 8% year-over-year; organic net sales down 3%.

• Adjusted operating profit: $547M, down 32%; adjusted diluted EPS: $0.64, down 37%.

• Nine-month net sales: $13,815M, down 7%; adjusted operating profit: $2,106M, down 23%; adjusted diluted EPS: $2.60, down 25%.

• Adjusted gross margin: 30.6% (down 280 bps); adjusted operating profit margin: 12.3% (down 420 bps).

• Operating cash flow for nine months: $1.6B, down from $2.3B prior year; capital investments: $356M.

Outlook and guidance

• Fiscal 2026 guidance reaffirmed: organic net sales expected down 1.5%-2%; adjusted operating profit and EPS down 16%-20% in constant currency.

• Q4 expected to show significant sequential improvement due to favorable timing, 53rd week, and reversal of Q3 headwinds.

• Free cash flow conversion expected to be at least 95% of adjusted after-tax earnings.

• Net impact of divestitures, acquisitions, FX, and 53rd week expected to reduce full-year net sales growth by ~4%.

• Fiscal 2027 expected to benefit from lapping price investments and continued cost efficiency.