General Mills reported mixed Q2 FY2026 results, with net sales and EPS declining due to divestitures and strategic investments, but organic net sales showed resilience. The company reaffirmed its full-year outlook, emphasizing a focus on restoring volume-driven organic net sales growth.
Organic net sales were down only 1% in Q2, showing resilience despite headwinds.
neutralNorth America Pet segment net sales increased 11% driven by acquisition.
positiveInternational segment net sales increased 6% (4% organic).
positiveCompany reaffirmed full-year fiscal 2026 outlook.
neutralNet sales decreased 7% to $4.9 billion, impacted by a 6-point headwind from divestitures and acquisitions.
negativeOperating profit decreased 32% to $728 million, and adjusted operating profit decreased 20% in constant currency.
negativeDiluted EPS decreased 45% to $0.78, and adjusted diluted EPS decreased 21% in constant currency.
negativeGross margin decreased 210 basis points to 34.8% due to higher input costs and unfavorable mark-to-market effects.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
| Segment | Current | Prior Yr | YoY | % Total |
|---|---|---|---|---|
North America Retail | $2883300.0B | $3321500.0B | — | 59.4% |
International | $728900.0B | $690600.0B | — | 15.0% |
North America Pet | $660400.0B | $595800.0B | — | 13.6% |
North America Foodservice | $581800.0B | $630000.0B | — | 12.0% |
| Total Revenue | $4854400.0B | — | — | 100.0% |
Segment performance shows business unit health and growth drivers.
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.
Investments in remarkability are working, helping restore organic volume growth in North America Retail.
Confidence in plans to drive further improvement in the rest of the year.
Company is investing in brands to restore volume-driven organic net sales growth.
Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.