General Mills EPS Beats, Fiscal 2026 Outlook Cautious

General Mills reported fourth-quarter revenue of $4.56 billion, slightly below expectations, but adjusted earnings per share of $0.74 beat analyst forecasts. Net sales declined 3% year-over-year, and both operating and free cash flow margins fell compared to the previous year. The company issued a cautious outlook for fiscal 2026, projecting adjusted EPS and operating profit to decline by 10-15% and organic net sales to range from down 1% to up 1%, citing weak demand for snacks and baked goods, rising costs, and macroeconomic uncertainty. The sale of the U.S. Yogurt business is scheduled to close by the end of June 2025. General Mills' stock has dropped over 16% year-to-date, underperforming the broader market. Despite strategic investments stabilizing sales volumes, investors remain concerned about the company's ability to regain growth amid shifting consumer habits.