General Mills’ first quarter results were met with a negative market reaction, as the company’s non-GAAP earnings per share fell short of Wall Street expectations and sales volumes declined sharply. Management attributed the underperformance to continued investments in brand competitiveness and shelf pricing, which weighed on margins. CEO Jeffrey Harmening emphasized that these near-term pressures were anticipated as part of a broader effort to rebuild household penetration and baseline volume, stating, “We are seeing strength and momentum on critical building blocks for sustainable growth, namely household penetration, improved baseline volume, distribution, and market shares.”
Is now the time to buy GIS? Find out in our full research report (it’s free for active Edge members).
General Mills (GIS) Q1 CY2026 Highlights:
- Revenue: $4.44 billion vs analyst estimates of $4.42 billion (8.4% year-on-year decline, in line)
- Adjusted EPS: $0.64 vs analyst expectations of $0.73 (12.1% miss)
- Adjusted EBITDA: $686.6 million vs analyst estimates of $727.5 million (15.5% margin, 5.6% miss)
- Operating Margin: 11.8%, down from 18.4% in the same quarter last year
- Organic Revenue fell 3% year on year (miss)
- Sales Volumes fell 11% year on year (-4% in the same quarter last year)
- Market Capitalization: $19.64 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From General Mills’s Q1 Earnings Call
- Andrew Lazar (Barclays) asked about the potential for volume growth as pricing actions subside. CEO Jeffrey Harmening stated the goal is to improve dollar share competitiveness through innovation and marketing, while acknowledging category growth remains volatile.
- Leah Jordan (Goldman Sachs) sought clarity on the impact of this year’s innovation efforts and upcoming launches. Group President Dana McNabb shared that new product growth is tracking above 25% in North America Retail and highlighted further expansion in protein and fiber offerings.
- David Palmer (Evercore ISI) pressed on margin recovery potential if organic sales stabilize. CFO Kofi Bruce explained that stable or growing volume would aid margin expansion and that ongoing transformation initiatives should further contribute to productivity gains.
- Alexia Howard (AllianceBernstein) inquired about Foodservice segment weakness, especially in bakery flour. Harmening attributed the decline to yogurt divestiture and flour softness but expects the flour business to recover in the next quarter.
- Peter Galbo (Bank of America) asked about the rationale for exiting Brazil and freight cost risks. Harmening explained the Brazil sale enhances focus on profitable global brands, while Bruce noted that freight inflation is being monitored but is not expected to be material this year.
Catalysts in Upcoming Quarters
Looking ahead, the StockStory team will monitor (1) signs of volume stabilization and improved organic growth as promotional and pricing strategies normalize, (2) the impact of new product launches and marketing investments on core brand performance, and (3) margin recovery efforts, including how well cost savings and operational improvements offset inflation. The progress of the Brazil divestiture and performance in the Pet segment will also be key indicators.
General Mills currently trades at $36.99, down from $38.74 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).
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