General Mills, Inc. (NYSE: GIS) reported second-quarter results that exceeded expectations, with adjusted earnings surpassing forecasts despite meaningful pressure from recent divestitures. Shares rose more than 3% intra-day on Wednesday following the release.
The company posted adjusted earnings of $1.10 per share for the quarter ended November 23, beating analyst estimates of $1.02. Net sales totaled $4.9 billion, above the $4.78 billion consensus estimate, though revenue declined 7% year over year. The decrease included a six-percentage-point headwind from the net impact of divestitures and acquisitions, primarily related to the sale of its North American yogurt business. Organic net sales declined 1% from a year earlier.
Adjusted operating profit fell 20% in constant currency terms to $848 million, while adjusted operating margin contracted 290 basis points to 17.4%. The North America Retail segment, the company’s largest by revenue, saw net sales decline 13%, including a 10-point drag from yogurt divestitures.
Strength was seen in the North America Pet segment, where net sales rose 11%, supported by the acquisition of Whitebridge Pet Brands. The International segment also delivered growth, with net sales increasing 6% on strong performance in Brazil, China, India, and North Asia.
General Mills reaffirmed its fiscal 2026 outlook, projecting organic net sales ranging from a 1% decline to a 1% increase, and forecasting adjusted operating profit and adjusted diluted earnings per share to fall 10% to 15% in constant currency.
