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General Mills Stock Dips as Q1 Adjusted EPS Falls 13%

SEC / General Mills2 min read5 sources

Why is General Mills stock down today?

General Mills (GIS) stock dipped on Wednesday after the food company's Q1 FY2027 adjusted earnings fell 13% to $0.75 per share, narrowly beating the $0.72 analyst estimate.

Key numbers

Q1 FY2027 Adj EPS$0.75-13% vs $0.86 prior year
Q1 FY2027 Net Sales$4.39B-3% YoY reported
Q1 Organic Net SalesFlat~0% change vs prior year
Adj Gross Margin33.3%-90 bps YoY
FY2027 Adj EPS Guidance$3.00–$3.20Reiterated unchanged

What happened

General Mills (GIS) stock dipped on Wednesday after the food company's Q1 FY2027 adjusted earnings fell 13% to $0.75 per share, narrowly beating the $0.72 analyst estimate. Net sales came in at $4.39 billion, down 3% from a year earlier mostly because the company no longer owns the yogurt brands it sold in 2025; organic sales — which strip out that effect — were flat. Adjusted gross margins compressed to 33.3% of sales, roughly 0.9 percentage points below last year, as food ingredient costs rose about 4%. Management reaffirmed full-year FY2027 guidance for $3.00–$3.20 in adjusted earnings per share but acknowledged the company is 'not all the way to growth yet'.

Why it matters

General Mills makes many of America's most familiar grocery brands — Cheerios, Wheaties, Blue Buffalo pet food, and dozens more — so its results are a reliable gauge of how branded food companies are holding up as shoppers stay cautious. The 13% drop in adjusted earnings, even while beating estimates, shows inflation is still squeezing profits faster than price increases and cost-cutting can keep up. Flat organic sales mean the company has not yet won back shoppers who switched to cheaper store-brand alternatives during the recent cost-of-living squeeze.

Who this affects

Marketbearish
Low impact
Food stocks broadly softer; cautious sentiment toward consumer staples.
Companybearish
Medium impact
GIS shareholders face falling EPS with no clear volume catalyst.
Competitorsneutral
Low impact
Kraft Heinz and Conagra face the same pricing-vs-volume squeeze.
Industrybearish
Low impact
Packaged food sector broadly pressured by inflation and weak volumes.

General Mills vs Kraft Heinz, Conagra, Campbell's

General MillsGIS:NYSE$18.9B-22%11.6x
Kraft HeinzKHC:NASDAQ$28.5B+3%11.2x
Conagra BrandsCAG:NYSE$6.9B-19%10.3x
Campbell'sCPB:NYSE—+3%11.8x

As of 2026-09-23

How we got here

  1. Q1 FY2026: adj EPS $0.86 boosted by ~$1B yogurt divestiture gain

  2. FY2026 annual results; initial FY2027 guidance of $3.00–$3.20 adj EPS issued

  3. Q1 FY2027: adj EPS $0.75 beats $0.72 est; down 13% YoY; guidance reaffirmed

What to watch

  • Q2 FY2027 earnings: will North America Retail organic sales turn positive?2026-12
  • Input cost inflation expected to worsen to ~6% by Q4 FY20272027-03
  • Cereal and soup market-share trends; narrowing share losses must accelerate2026-12

Educational content only. Not investment advice.

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