General Mills reaffirms full year guidance as Q3 earnings miss estimates

General Mills Inc (NYSE:GIS, XETRA:GRM) reported 3rd 4th fiscal 2026 results that fell abbreviated of expert expectations, with shares small changed astatine astir $39 precocious greeting connected Wednesday arsenic the institution reaffirmed its full-year guidance.

The institution posted nett income of $4.4 billion, down 8% year-over-year owed to little volumes and divestitures. This was somewhat beneath expert expectations of astir $4.44 billion.

Adjusted EPS came successful astatine $0.64, missing statement estimates of astir $0.75. Adjusted operating nett was $547 million, down 32% successful changeless currency, portion operating nett was $525 million, a 41% diminution from the anterior year.

Gross borderline fell 310 ground points to 30.8%, driven by higher input costs partially offset by favorable pricing and merchandise mix, including benefits from North American yogurt divestitures.

General Mills reaffirmed its full-year fiscal 2026 guidance, stating that integrated nett income are expected to diminution 1.5% to 2%.

The institution besides expects adjusted operating nett and adjusted diluted EPS to autumn 16% to 20% successful changeless currency. Free currency travel conversion is projected to beryllium astatine slightest 95% of adjusted after-tax earnings.

The institution noted that the combined effects of divestitures, acquisitions, overseas currency exchange, and the 53rd week are expected to trim full-year nett income maturation by astir 4%, portion overseas currency speech is not expected to person a worldly interaction connected adjusted operating nett oregon adjusted EPS growth.

“We’re reaffirming our fiscal 2026 guidance today, arsenic our absorption connected executing our Remarkability playbook continued to present stronger competitiveness for our brands successful the 3rd quarter,” General Mills CEO Jeff Harmening said.

“We started the twelvemonth expecting that our investments, divestitures, and unfavorable timing comparisons would thrust declines successful our income and net results done our archetypal 3 quarters, adjacent arsenic we improved our measurement and marketplace share. And that’s what we’ve seen play out.”

Analysts astatine Jefferies described the 4th arsenic “volatile,” citing retailer inventory pressures successful North America, weather-related proviso disruptions, commercialized disbursal timing, and M&A effects.

They noted that management’s determination to support full-year guidance reflects expectations that immoderate headwinds volition reverse successful Q4, including the payment of a 53rd week, and highlighted that investments successful fiscal 2026 are expected to enactment integrated income maturation successful fiscal 2027.

Overall, the analysts said, “a batch of puts and takes trim visibility” for the adjacent term.