General Mills (GIS) Q4 2026 Prepared remarks earnings summary

Executive summary

• Fiscal 2026 ended with Q4 results meeting expectations, with net sales up 1% to $4.61B and organic net sales flat, despite a challenging consumer environment and macroeconomic pressures.

• Significant progress was made in base volume, household penetration, and innovation, with a focus on restoring sustainable, profitable growth and enhancing product remarkability.

• Leadership changes included the promotion of Dana McNabb to COO, emphasizing growth and operational transformation.

• Fiscal 2027 plans focus on topline growth, innovation, and targeting $3B in cost savings by 2030.

• Full-year results were impacted by non-cash goodwill and intangible asset impairments and a valuation loss on the planned Brazil divestiture.

Financial highlights

• Q4 net sales were $4.61B, up 1%; organic net sales were flat; Q4 adjusted operating profit rose 13% and adjusted diluted EPS grew 27%.

• FY 2026 net sales were $18.43B, down 5% as reported and 2% organically; adjusted operating profit fell 16% and adjusted diluted EPS dropped 16%.

• Adjusted gross margin for FY 2026 was 33.5%, down 100 bps; Q4 gross margin was 34.8%, up 240 bps.

• Operating cash flow for FY 2026 was $2.2B; $1.8B was returned to shareholders via dividends and share repurchases.

• Capital investments totaled $540M; average diluted shares outstanding decreased 4% to 538M.

Outlook and guidance

• FY 2027 organic net sales expected between -1.5% and +0.5%, with adjusted operating profit projected to decline 13% to 8% in constant currency.

• Adjusted diluted EPS expected between $3.00 and $3.20; free cash flow conversion targeted at ~95% of adjusted after-tax earnings.

• $750M in cost savings planned for FY 2027, with $3B cumulative savings targeted by FY 2030.

• Q1 FY 2027 expected to be below annual guidance due to shipment timing and cost savings phasing.

• Guidance excludes impacts from proposed divestitures in Brazil and Häagen-Dazs Shops China.