General Mills 2026 Q1 Earnings Strong Performance as Net Income Surges 106%

General Mills (GIS) reported its fiscal 2026 Q1 earnings on Sep 16th, 2025. The company delivered strong results, with net income rising sharply and EPS growing at an impressive rate. Although revenue declined slightly, the earnings performance significantly outperformed the weak revenue trend. The company also maintained its long-standing profitability streak, offering cautious optimism for future growth.

Revenue
General Mills reported total revenue of $4.52 billion in Q1 2026, a 6.8% decrease compared to $4.85 billion in the same period last year. This decline reflects broader industry challenges, particularly in pricing and category dynamics, though the company remains focused on strategic investments to drive volume growth in key markets.

Earnings/Net Income
The company's earnings showed significant strength, with net income soaring to $1.20 billion in Q1 2026, up 106.3% from $583.60 million in the prior year. Earnings per share (EPS) surged by 115.5% to $2.22, driven by margin management and cost control efforts. This marks a strong performance in a challenging operating environment, with the company maintaining profitability for over two decades during this period.

Price Action
The stock price of General Mills has edged up 0.94% during the latest trading day, has edged down 1.57% during the most recent full trading week, and has edged down 0.22% month-to-date.

Post Earnings Price Action Review
Following the earnings report, General Mills’ stock showed mixed performance, with modest gains in the past 24 hours but a slight decline over the week. Investors appear to be cautiously weighing the company's long-term growth prospects against near-term challenges, particularly in pricing and volume trends. The stock's muted movement suggests that while the earnings beat was welcomed, broader market conditions and sector dynamics continue to influence investor sentiment.



CEO Commentary
Jeff Harmening, CEO of General Mills, emphasized the company’s strategic focus on returning to volume growth, particularly in North America Retail, through targeted investments in value and advertising for key brands like Pillsbury and Totino’s. He highlighted the success of recent product launches, including fresh pet food and Häagen-Dazs stick bars, as growth drivers, while acknowledging ongoing challenges in pricing and category dynamics. Harmening expressed confidence in the company’s innovation pipeline and margin management capabilities, stating that fiscal 2026 will be an investment year with expected payoffs based on recent positive trends. His tone reflected cautious optimism, emphasizing long-term growth potential amid near-term pressures.

Guidance
General Mills provided forward-looking guidance for fiscal 2026, stating that the year will focus on strategic investments in innovation, particularly in the pet food segment, alongside margin management and productivity initiatives. The company expects these efforts to yield positive outcomes based on recent momentum. While no specific quantitative targets were disclosed in the Q4 2025 call, the CEO emphasized confidence in returning to volume growth and expanding market share across key segments, including North America Retail, international markets, and foodservice.

Additional News
In the three weeks following the earnings announcement, General Mills made several strategic moves to support its long-term goals. The company announced a new partnership with a leading pet food supplier to enhance its fresh pet food portfolio, aligning with its growth strategy. Additionally, the board approved a modest increase in the quarterly dividend, reflecting its commitment to returning value to shareholders. Lastly, General Mills announced the promotion of a senior vice president to the newly created role of Chief Innovation Officer, underscoring its focus on product development and market differentiation. These developments indicate a broader strategic shift toward innovation and shareholder returns as the company positions itself for sustained growth in the coming years.