General Mills (NYSE:GIS) Announces Earnings Results, Beats Estimates By $0.15 EPS

General Mills (NYSE:GIS) released its earnings results on Wednesday. The company reported $0.95 earnings per share for the quarter, beating the consensus estimate of $0.80 by $0.15, FiscalAI reports. General Mills had a positive return on equity of 21.37% and a negative net margin of 0.48%.The company had revenue of $4.61 billion for the quarter, compared to the consensus estimate of $4.59 billion. During the same period in the previous year, the business earned $0.53 earnings per share. General Mills’s quarterly revenue was up 1.2% compared to the same quarter last year. General Mills updated its FY 2027 guidance to 3.000-3.200 EPS.

Here are the key takeaways from General Mills’ conference call:

• General Mills said it exited fiscal 2026 with a stronger foundation, citing improved household penetration, base volume, and innovation that should support a better fiscal 2027.
• Management is shifting from last year’s price-reset strategy to a bigger focus on innovation, renovation, packaging, and brand communication to drive growth and better price mix.
• The company expects $3 billion in cumulative cost savings through fiscal 2030, including $750 million in fiscal 2027, largely from HMM and Global Transformation initiatives.
• Executives warned that the consumer environment remains pressured, with shoppers still trading to promotion and value, so they are not assuming meaningful category improvement in fiscal 2027.
• General Mills sees fiscal 2027 organic sales improvement as driven mainly by its own execution, especially in businesses like Totino’s, Wilderness, and pet, while pet inventory volatility and higher inflation may create near-term headwinds.

General Mills Stock Performance

GIS opened at $37.50 on Friday. The stock has a market capitalization of $20.01 billion, a price-to-earnings ratio of -208.31 and a beta of -0.03. The company has a fifty day moving average of $34.23 and a 200 day moving average of $39.82. General Mills has a fifty-two week low of $31.75 and a fifty-two week high of $54.01. The company has a debt-to-equity ratio of 1.68, a quick ratio of 0.36 and a current ratio of 0.68.

General Mills Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, August 3rd. Investors of record on Friday, July 10th will be given a dividend of $0.61 per share. The ex-dividend date is Friday, July 10th. This represents a $2.44 dividend on an annualized basis and a dividend yield of 6.5%. General Mills’s dividend payout ratio is currently 59.66%.

Wall Street Analyst Weigh In

GIS has been the topic of a number of analyst reports. Barclays lowered their price objective on General Mills from $41.00 to $36.00 and set an “equal weight” rating on the stock in a research report on Monday, May 11th. UBS Group decreased their target price on shares of General Mills from $35.00 to $30.00 and set a “sell” rating on the stock in a research note on Tuesday, June 2nd. Stifel Nicolaus lowered their price target on shares of General Mills from $44.00 to $40.00 and set a “buy” rating on the stock in a report on Tuesday, April 21st. Royal Bank Of Canada dropped their price target on shares of General Mills from $60.00 to $55.00 and set an “outperform” rating for the company in a research report on Thursday, March 19th. Finally, Bank of America lifted their target price on shares of General Mills from $36.00 to $39.00 and gave the company a “neutral” rating in a research note on Thursday. Four equities research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and seven have given a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has a consensus rating of “Reduce” and an average price target of $39.00.

Key General Mills News

Here are the key news stories impacting General Mills this week:

• Positive Sentiment: General Mills reported Q4 adjusted EPS of $0.95, well above estimates, and revenue of $4.61 billion, which also topped expectations. The beat suggests core demand held up better than feared. General Mills (GIS) Q4 Earnings and Revenues Top Estimates
• Positive Sentiment: The company said it plans to generate $3 billion in cost savings by fiscal 2030, which could help offset inflation pressure and protect profits even if sales growth remains modest. General Mills Fiscal Fourth-Quarter Results Top Views; Targets $3 Billion in Cost Savings
• Positive Sentiment: Management also emphasized innovation and product refreshes, including protein-focused cereals and pet food, as part of a strategy to win back budget-conscious shoppers and restart growth. Here’s How the Maker of Cheerios Is Planning to Win Back Thrifty Customers
• Neutral Sentiment: Several firms nudged up price targets after the report, but ratings stayed mostly Hold/Neutral or Underweight, reflecting mixed confidence in the pace of a turnaround. These Analysts Increase Their Forecasts On General Mills After Upbeat Q4 Results
• Neutral Sentiment: Analysts noted the earnings beat was solid, but they remain unimpressed by the company’s weak sales growth and cautious fiscal 2027 outlook. General Mills Says Inflation-Weary Shoppers Will Stay Focused on Value
• Negative Sentiment: Guidance for fiscal 2027 came in below some analyst expectations, which could limit upside if revenue growth stays sluggish despite the cost-savings plan. General Mills tops quarterly expectations despite cautious FY2027 outlook

Insiders Place Their Bets

In other General Mills news, insider Ricardo Fernandez sold 7,995 shares of the business’s stock in a transaction on Tuesday, May 12th. The shares were sold at an average price of $34.50, for a total value of $275,827.50. Following the sale, the insider owned 62,283 shares in the company, valued at $2,148,763.50. The trade was a 11.38% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Jacqueline Williams-Roll sold 10,000 shares of the stock in a transaction dated Tuesday, May 12th. The shares were sold at an average price of $34.27, for a total transaction of $342,700.00. Following the transaction, the insider directly owned 86,002 shares of the company’s stock, valued at $2,947,288.54. This trade represents a 10.42% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 0.30% of the company’s stock.

Institutional Trading of General Mills

A number of large investors have recently added to or reduced their stakes in GIS. Marshall Wace LLP purchased a new position in General Mills in the second quarter worth about $9,188,000. Bank of Nova Scotia grew its position in General Mills by 4.1% in the 2nd quarter. Bank of Nova Scotia now owns 65,118 shares of the company’s stock valued at $3,374,000 after acquiring an additional 2,552 shares during the last quarter. WINTON GROUP Ltd increased its stake in General Mills by 112.6% in the second quarter. WINTON GROUP Ltd now owns 8,971 shares of the company’s stock worth $465,000 after purchasing an additional 4,752 shares during the period. Daiwa Securities Group Inc. increased its stake in General Mills by 4.9% in the second quarter. Daiwa Securities Group Inc. now owns 82,037 shares of the company’s stock worth $4,250,000 after purchasing an additional 3,814 shares during the period. Finally, Nebula Research & Development LLC lifted its position in shares of General Mills by 334.2% during the second quarter. Nebula Research & Development LLC now owns 19,542 shares of the company’s stock worth $1,012,000 after purchasing an additional 15,041 shares during the last quarter. Institutional investors own 75.71% of the company’s stock.

About General Mills

General Mills, Inc (NYSE: GIS) is a multinational consumer foods company that develops, manufactures and markets a broad portfolio of branded food products. Its product categories include ready-to-eat and hot cereals, baking mixes and ingredients, snacks and bars, refrigerated and frozen doughs, yogurt and other dairy products, and a variety of shelf-stable meals and meal components. The company’s portfolio features widely recognized consumer brands across grocery store, mass channel and foodservice outlets.

Founded in the early 20th century and incorporated under its current name in 1928, General Mills has grown through both internal brand development and strategic expansion to become a global food company.