General Mills (NYSE: GIS) reported fourth-quarter results for fiscal 2026, posting net sales of $4.6 billion, a 1% increase from the prior-year period, while adjusted earnings met company expectations despite substantial non-cash impairment charges that resulted in a quarterly net loss under generally accepted accounting principles (GAAP). The company also introduced a long-term efficiency initiative targeting $3 billion in cumulative cost savings by fiscal 2030 and provided guidance for fiscal 2027.
For the full fiscal year ended May 31, 2026, net sales declined 5% to $18.4 billion, while organic net sales decreased 2%. Reported operating profit fell 73% to $886 million, largely reflecting non-cash goodwill and intangible asset impairment charges together with a valuation loss related to the planned divestiture of the company's Brazil business. Adjusted operating profit, which excludes certain items, declined 16% in constant currency to $2.8 billion.
#Fourth-Quarter Performance
During the fourth quarter, General Mills generated net sales of $4.6 billion, supported in part by an additional week in the fiscal calendar. Organic net sales were essentially unchanged from the prior year.
The company reported an operating loss of approximately $2.1 billion and a diluted loss per share of $3.74 under GAAP. These results were primarily driven by approximately $1.8 billion in non-cash goodwill and brand impairment charges, as well as a roughly $1.0 billion non-cash valuation loss associated with the planned Brazil divestiture. Excluding these items, adjusted operating profit increased 13% in constant currency to $705 million, while adjusted diluted earnings per share rose 27% to $0.95 in constant currency.
General Mills said fourth-quarter sales increased 1% on a reported basis, aided by the 53rd week in the fiscal year and foreign currency movements, while acquisitions and divestitures reduced reported growth.
#Fiscal 2027 Outlook and Cost Savings Plan
Alongside its earnings release, General Mills announced a target of generating $3 billion in cumulative cost savings through fiscal 2030. According to the company, approximately $2 billion is expected to come from its Holistic Margin Management productivity program, while the remaining $1 billion is expected to result from a broader global transformation initiative and additional efficiency measures. At least $750 million of those savings are expected during fiscal 2027.
For fiscal 2027, the company forecasts:
Organic net sales between down 1.5% and up 0.5%.
Adjusted operating profit down 13% to down 8% in constant currency.
Adjusted diluted earnings per share between $3.00 and $3.20.
Free cash flow conversion of approximately 95% of adjusted after-tax earnings.
General Mills said the outlook assumes continued challenging consumer demand conditions while shifting investment toward product innovation, renovation, and marketing after completing pricing actions implemented during fiscal 2026. The company also noted expected headwinds from the absence of the prior year's 53rd week, normalization of incentive compensation, and the impact of recent divestitures. Those projections are forward-looking statements and remain subject to market conditions and other execution risks identified by the company.
#Segment Results
North America Retail, the company's largest business, reported fourth-quarter sales of $2.5 billion, down 4% from a year earlier. International net sales increased 16%, North America Pet sales rose 4%, and North America Foodservice sales declined 1%.
For the full fiscal year, International remained the strongest-performing segment, with reported net sales increasing 9%, while North America Retail revenue declined 11%, reflecting the impact of yogurt divestitures and softer consumer demand. North America Pet sales increased 6%, and North America Foodservice revenue decreased 6%.
The company also reported operating cash flow of approximately $2.2 billion for fiscal 2026, capital expenditures of $540 million, and dividend payments totaling about $1.3 billion. General Mills repurchased $500 million of its shares during the fiscal year and announced that its quarterly dividend will remain unchanged at $0.61 per share, payable on August 3, 2026, to shareholders of record on July 10, 2026.
General Mills has been reshaping parts of its portfolio through acquisitions and divestitures over the past several years. The fiscal 2026 results reflect both those portfolio changes and accounting charges related to asset valuations, which affected reported earnings but not adjusted operating performance. The company's fiscal 2027 strategy emphasizes restoring organic sales growth while pursuing additional productivity improvements and cost efficiencies.