General Mills 2025 Q4 Earnings Misses Targets as Net Income Drops 46%

General Mills (GIS) reported its fiscal 2025 Q4 earnings on Jun 24th, 2025. General Mills' quarterly results fell short of expectations with adjusted earnings per share of $0.74, below the analyst consensus of $0.71. Revenue guidance for the upcoming quarter aligns with expectations, projecting approximately $4.56 billion. Despite the challenges, General Mills maintains a strategic focus on pricing adjustments and increased marketing spend to support growth initiatives in fiscal 2026.

Revenue
The total revenue of General Mills decreased by 3.3% to $4.56 billion in 2025 Q4, down from $4.71 billion in 2024 Q4.

Earnings/Net Income
General Mills's EPS declined 46.2% to $0.54 in 2025 Q4 from $1.00 in 2024 Q4. Meanwhile, the company's net income declined to $302 million in 2025 Q4, down 46.0% from $559.70 million reported in 2024 Q4. Notably, the EPS performance is concerning given the significant drop.

Price Action
The stock price of General Mills has edged up 0.23% during the latest trading day, has edged down 0.22% during the most recent full trading week, and has edged up 0.09% month-to-date.

Post-Earnings Price Action Review
The strategy of purchasing General Mills shares after a quarterly revenue drop on the financial report release date and holding for 30 days showed poor performance. This approach produced a compound annual growth rate of -11.55%, leading to an excess return of -88.75% when compared to the benchmark. The Sharpe ratio stood at -0.52, indicating unsatisfactory returns, while the maximum drawdown hit -44.34%, highlighting substantial risk. Such figures reflect the challenges and volatility faced by investors employing this strategy, underscoring the need for a reassessment of investment approaches in the context of declining revenue trends.

CEO Commentary
General Mills CEO emphasized that despite facing challenges such as reduced consumer confidence and inventory headwinds, the company is focused on improving its competitive position through cost savings and increased investment in innovation and marketing. The leadership remains committed to driving organic growth and enhancing brand performance, particularly for key brands like Blue Buffalo and Pillsbury, showcasing a balanced outlook amidst market pressures. The CEO expressed cautious optimism regarding the company's ability to navigate these hurdles by aligning pricing strategies with consumer values and investing in impactful marketing initiatives.

Guidance
General Mills expects to achieve at least 5% Holistic Margin Management savings along with an additional $100 million in cost savings, which will be reinvested to enhance competitiveness. The company anticipates revenue of approximately $4.56 billion and an EPS of $0.74 for the upcoming quarter, indicating a strategic focus on pricing adjustments and increased marketing spend to support growth initiatives in fiscal 2026.

Additional News
General Mills has announced its plans to remove certified colors from all U.S. cereals and foods served in K-12 schools by summer 2026, marking a shift towards more natural ingredients. The company also revealed a multi-year global transformation initiative under its Accelerate strategy aimed at enhancing operational agility through new tools and technologies. Additionally, General Mills declared a quarterly dividend of 61 cents per share, payable on August 1, 2025, representing a 2% increase from the previous rate. These strategic moves underscore General Mills' commitment to innovation and shareholder value amidst changing consumer preferences.