Shares of General Mills, Inc. (NYSE: GIS) dropped over 4% on Wednesday after the company delivered mixed results for the fourth quarter of 2025 and provided a bleak outlook for the upcoming fiscal year. The branded foods maker anticipates a continued challenging consumer environment and expects higher growth investments to weigh on its bottom line in the coming year.
Earnings beat, revenues miss
In the fourth quarter of 2025, General Mills’ net sales decreased 3% year-over-year to $4.56 billion, missing estimates of $4.6 billion. Organic sales were also down 3%. GAAP earnings per share declined 46% to $0.53. Adjusted EPS fell 27% to $0.74, but managed to surpass projections of $0.71.
Business performance
During the quarter, sales in the North America Retail and North America Foodservice segments decreased 10% and 2% respectively. Within the Retail segment, sales dropped double-digits for US Snacks and mid-single-digits for US Morning Foods and US Meals & Baking Solutions.
Sales in the North America Pet segment increased 12% in Q4, benefiting from the North American Whitebridge Pet Brands acquisition as well as double-digit growth for wet pet food and pet treats and mid-single-digit growth for dry pet food.
In the coming fiscal year, the pet segment is expected to benefit from the company’s efforts to expand its portfolio and grow the Blue Buffalo business, as well as from the pet humanization trend. Sales in the International segment grew 11% in the fourth quarter.
Disappointing outlook
General Mills expects the consumer environment to remain challenging in fiscal year 2026. The company plans to increase its investments in brand-building, innovation and more to boost category growth. These investments coupled with input cost inflation and tariff impacts are anticipated to pressure its profits in the coming year.
GIS expects organic sales for FY2026 to range between down 1% and up 1%. Adjusted EPS is expected to be down 10-15% in constant currency versus FY2025.
Listen to the conference calls as they happen. Don't miss a beat! With AlphaStreet Intelligence, you can listen to live calls and interviews as they happen, so you never have to worry about missing out on important information.
Most Popular
BLK Q4 Preview: BlackRock appears poised for another earnings beat
BlackRock, Inc. (NYSE: BLK), the largest asset management company, is expected to publish its fourth-quarter 2025 results next week. The update is expected to shed light on how the firm’s
A look at Best Buy’s (BBY) progress on its growth strategy
Shares of Best Buy Co., Inc. (NYSE: BBY) fell over 3% on Wednesday. The stock has dropped 17% over the past 12 months. The consumer electronics retailer delivered sales and
Citigroup set to report Q4 2025 earnings. Here’s what to expect
Citigroup Inc. (NYSE: C) has undergone a sweeping transformation in recent years, emerging as a more streamlined and profitable financial institution. The bank's performance in recent quarters has underscored the
