General Mills first-quarter fiscal 2026 results reaffirm full-year outlook. The company reported organic net sales down 3 percent, adjusted operating profit off 18 percent in constant currency, and adjusted diluted earnings per share down 20 percent.
Net sales came in at $4.5 billion for the quarter. That marked a 7 percent decrease from last year. About 4 points of that drop came from the impact of divestitures and acquisitions, mainly the yogurt exit.
Reported operating profit jumped sharply, up 108 percent to $1.7 billion. The rise was mostly tied to a one-time $1.05 billion gain from the U.S. yogurt divestiture. Without that factor, the adjusted operating profit was $711 million, a step down compared to last year’s level.
Earnings per share told a mixed story. Diluted EPS was $2.22, more than double the year before, boosted again by the yogurt transaction. But adjusted diluted EPS came in at $0.86, which was 20 percent lower than the prior year.
North America Retail delivered weaker numbers. Sales were down 13 percent, reflecting lower volume and the yogurt divestiture effect. The division remains a key contributor, but this quarter it faced tougher comparisons.
In the North America Pet business, net sales increased 6 percent, though the growth came from acquisitions. Organic sales in this segment declined, showing some pressure in demand.
The International unit went the other way, posting stronger gains. Net sales rose 6 percent, with organic sales up 4 percent. That made it one of the brighter spots in the quarter’s results.
Despite the softer start, General Mills held its guidance for the full fiscal year. Management expects organic net sales to range between down 1 percent to up 1 percent. Adjusted operating profit and adjusted EPS are still forecast to decline between 10 and 15 percent in constant currency.
The company also projects free cash flow conversion of at least 95 percent of adjusted after-tax earnings. That target suggests continued focus on cash discipline through the rest of the year.
General Mills first-quarter fiscal 2026 results reaffirm full-year outlook, signaling steady guidance even with declines in sales and profit during the opening quarter.
