General Mills reported fiscal 2026 second‑quarter results, posting net sales of $4.86 billion—a 7 % year‑over‑year decline that reflects the impact of its yogurt divestiture and continued investment in the pet nutrition platform. The decline is largely offset by a 6 % sales increase in the pet segment, which helped lift overall revenue.
Adjusted earnings per share rose to $1.10, beating the consensus estimate of $1.02 by $0.08 (7.8 %). The beat was driven by disciplined cost management under the Holistic Margin Management program, which delivered savings that offset higher input costs and supported margin stability despite the sales dip.
Gross margin contracted to 34.8 % of sales, down 150 basis points from the prior year, largely due to higher commodity prices. However, the company’s pricing power in core categories and a favorable mix shift toward higher‑margin pet products helped cushion the impact.
General Mills reaffirmed its full‑year 2026 outlook, keeping organic net sales guidance in a range of a 1 % decline to 1 % growth and projecting adjusted operating profit and EPS to decline 10 %–15 % in constant currency. Management emphasized that the short‑term profitability drag from pet nutrition and brand “remarkability” investments is expected to support long‑term growth.
CEO Jeff Harmening highlighted that the company’s focus on “remarkable innovation” and strategic investments in pet nutrition are driving volume gains in North America Retail and strengthening competitive positioning. He noted that the company remains confident in its ability to navigate current headwinds while building momentum for future growth.
Harmening said, “Our team continued to execute exceptionally well in a volatile operating environment, delivering results ahead of our expectations in the second quarter. Our investments in remarkability are working, helping restore organic volume growth in North America Retail this quarter and driving strong competitiveness across each of our segments.”
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