General Mills Q4 sales, adjusted EPS beat estimates

General Mills

01/07/2026 12:15

Overview
US packaged foods maker's fiscal Q4 sales slightly beat analyst expectations
Adjusted EPS for fiscal Q4 beat consensus, rising 27% in constant currency
Company posted operating loss on non-cash charges tied to goodwill and Brazil divestiture

Outlook
General Mills expects fiscal 2027 organic net sales to range from down 1.5% to up 0.5%
Company targets adjusted diluted EPS of $3.00 to $3.20 for fiscal 2027
General Mills expects at least $750 mln in cost savings in fiscal 2027

Result Drivers
MARGIN IMPROVEMENT - Higher adjusted gross margin driven by favorable net price realization and mix, and trade expense timing, partially offset by higher input costs
COST MANAGEMENT - Lower selling, general, and administrative expenses supported profit growth, especially in North America Retail
SEGMENT VARIATION - International and Pet segments saw profit growth from price/mix and lower input costs, while Retail and Foodservice faced volume and cost pressures

Company press release: ID:nBw7QZ31xa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Sales
Slight Beat*
$4.61 bln
$4.59 bln (15 Analysts)
Q4 Adjusted EPS
Beat
$0.95
$0.80 (16 Analysts)
Q4 EPS
 
-$3.74
 
Q4 Gross Margin
 
34.80%
 
Q4 Adjusted Gross Margin
 
34.20%
 
Q4 Operating profit
 
-$2.09 bln
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 12 "hold" and 4 "sell" or "strong sell"
The average consensus recommendation for the food processing peer group is "buy."
Wall Street's median 12-month price target for General Mills Inc is $36.00, about 3.4% above its June 30 closing price of $34.80
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 11 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)