General Mills, Inc. stock (NYSE: GIS) was higher on Wednesday, December 17, after the packaged-foods giant delivered a better-than-expected fiscal second quarter and reiterated its full-year outlook—an important signal for investors watching whether the company’s “remarkability” and pricing actions can restore sustainable volume growth without sacrificing too much profitability. [1]
Shares traded around $48.52 during the session, up roughly 3% versus the prior close, after the company posted results that topped many Wall Street estimates even as year-over-year comparisons remained pressured by portfolio reshaping and investment spending. [2]
What happened to General Mills stock today
The day’s catalyst was General Mills’ fiscal Q2 2026 earnings report (quarter ended Nov. 23, 2025) and accompanying commentary that pointed to sequential improvement—especially in North America Retail volumes—against a backdrop of cautious consumers and intense competition across the grocery aisle. [3]
Investors have been particularly sensitive to signals around volume and share trends across core brands like cereal, Pillsbury, and snacks, as well as profitability pressure tied to input costs and stepped-up brand spending. Today’s report offered evidence of progress on competitiveness while keeping guidance intact. [4]
Q2 FY2026 results: the key numbers investors focused on
General Mills reported net sales of $4.861 billion for the quarter, down 7% year over year, with organic net sales down 1%. On profitability, adjusted operating profit was $848 million (down 20%), and adjusted diluted EPS was $1.10 (down 21%). [5]
Despite the declines, multiple reports indicated the company beat consensus expectations for both revenue and adjusted earnings per share. Reuters cited sales of about $4.86 billion versus expectations near $4.78 billion, and adjusted EPS of $1.10 versus about $1.03. [6]
Management framed the quarter as “ahead of expectations” in a volatile environment, with investments aimed at improving brand “remarkability” (product, packaging, communications, omnichannel execution, and value) showing up in better volume and competitiveness trends. [7]
Guidance: General Mills reaffirms its FY2026 outlook
A major support for GIS stock on Dec. 17 was the company’s decision to reaffirm its full-year fiscal 2026 outlook rather than reset expectations downward.
General Mills reiterated the following FY2026 targets:
- Organic net sales growth:-1% to +1%
- Adjusted operating profit growth:-15% to -10%
- Adjusted diluted EPS growth:-15% to -10%
- Free cash flow conversion:95%+ [8]
In other words, management continues to expect near-term earnings pressure—while emphasizing that the spending and pricing moves are designed to rebuild volume-driven growth and long-term brand health. [9]
The “remarkability” strategy: why it matters for GIS investors
General Mills has been explicit that it is investing to restore organic sales growth by improving what it calls the “Remarkable Experience Framework,” spanning pricing/value moves and higher-impact innovation and marketing. In the earnings-call transcript, the company described completing base price adjustments across roughly two-thirds of the North America Retail portfolio and linking that to better pound-share performance. [10]
The company also reiterated a concrete innovation ambition: it remains on track to deliver a 25% increase in sales from new products in fiscal 2026. [11]
For stockholders, the investment debate is straightforward: Can General Mills regain volume momentum fast enough to offset lower near-term margins and profit, and then re-accelerate earnings once the spending wave moderates?
Segment check: where General Mills is gaining (and where it’s not)
North America Retail: still down in sales, but better volume signals
In Q2, North America Retail organic net sales declined 3%, while segment operating profit fell 21%. However, the company highlighted higher volume partially offsetting price/mix pressure and said it grew or held pound share in 8 of its top 10 U.S. categories—a metric that matters for judging brand competitiveness. [12]
Barron’s also noted that organic sales volume in North American retail improved, adding to the narrative that the turnaround-style investments are beginning to show signs of traction. [13]
North America Pet: back to organic growth, but profits pressured
General Mills’ pet business remains a key long-term growth lever (Blue Buffalo and newer initiatives). In Q2, North America Pet organic net sales rose 1%, while segment operating profit fell 12%. The company pointed to favorable price/mix and highlighted continued investment—including spending related to the Love Made Fresh refrigerated dog food launch. [14]
The pet segment is a classic “growth vs. margin” storyline: investing to expand into attractive categories can weigh on near-term profitability, but management is signaling that it expects acceleration over time. [15]
International: the bright spot
International was the strongest segment in the quarter, with organic net sales up 4% and segment operating profit up 30%, driven by markets including Brazil, China, India, and North Asia. The company said it grew or held dollar share in 54% of priority businesses in Q2. [16]
For GIS stock, International performance matters because it can help offset mature-category pressures in U.S. center-of-store foods—especially when the consumer environment is promotional and value-sensitive. [17]
Joint ventures: a notable drag this quarter
General Mills reported an after-tax joint venture loss of $60 million, compared with $30 million of earnings in the prior year, with the company attributing the decline to a non-cash goodwill impairment in Cereal Partners Worldwide (CPW). [18]
Portfolio changes: yogurt divestitures and the Whitebridge Pet Brands acquisition
A key reason headline sales fell more than organic sales was portfolio reshaping.
Management and media coverage pointed to:
- The divestiture of North American yogurt businesses (U.S. and Canada)
- The acquisition of North American Whitebridge Pet Brands [19]
In practical terms, investors are increasingly evaluating General Mills as a portfolio weighted more toward core meals/snacks/cereal plus a larger pet platform, with yogurt no longer a meaningful contributor. [20]
Cash flow and shareholder returns: dividends and buybacks remain in focus
General Mills continues to emphasize cash generation and shareholder returns while it invests for growth.
In the first half of fiscal 2026, the company reported:
- About $1.2 billion in cash from operations
- Roughly $253 million in capital investments
- Approximately $659 million paid in dividends
- About $500 million in share repurchases [21]
Separately, General Mills’ board declared a $0.61 per share quarterly dividend, payable Feb. 2, 2026, to shareholders of record as of Jan. 9, 2026—and noted its 127-year uninterrupted dividend history. [22]
For income-oriented investors who follow GIS stock, that consistency can be a meaningful part of the thesis, particularly during periods when earnings growth is muted. [23]
Wall Street forecast: what analysts are projecting for General Mills stock
Analyst sentiment remains cautious overall, even after today’s earnings beat.
MarketBeat’s compiled view shows:
- Consensus rating:Hold
- Ratings breakdown: 2 Sell, 15 Hold, 4 Buy (based on 21 analysts)
- Average 12-month price target:$54.06 (with a low of $45 and a high of $71) [24]
Recent analyst actions going into the print illustrated that caution:
- Bernstein raised its price target to $55 and kept a Market Perform stance, citing improving volumes but still restrained enthusiasm. [25]
- Other firms had recently reduced targets, including a Jefferies cut to $47 and a Wells Fargo cut to $50, according to a pre-earnings roundup. [26]
The takeaway: the Street generally sees modest upside from current levels if volume gains hold, but many analysts are still waiting for clearer evidence that margins and earnings can re-accelerate after the investment-heavy period. [27]
The macro backdrop: why packaged foods are holding up (and what could change)
Reuters tied General Mills’ resilience to consumers leaning toward at-home eating and pantry staples amid economic uncertainty, while also flagging pressure points like inflation and benefit changes that can affect low- and middle-income shoppers. [28]
General Mills itself also described a more promotion-driven consumer, with shoppers increasingly buying on deal as they stretch budgets—an environment that can lift volumes but compress price/mix and margins if not managed carefully. [29]
Meanwhile, broader sector concerns remain in view, including private-label competition and evolving food trends—factors that have weighed on sentiment around many center-of-store packaged food names. [30]
Other headline to know: synthetic dyes and reformulation timelines
While not new today, General Mills’ long-term commitment to remove certified colors from its U.S. retail portfolio by the end of 2027 continues to appear in coverage as part of the company’s product and brand strategy. [31]
For investors, reformulation programs can have both brand benefits and execution risks (cost, supply chain complexity, and consumer acceptance). It’s a secondary stock driver compared with earnings and guidance, but it remains part of the narrative around “remarkability” and modernizing the portfolio. [32]
The SEC filing: results formally reported via 8‑K
General Mills also filed a Form 8‑K dated Dec. 17, 2025, stating it issued a press release reporting financial results for the fiscal quarter ended Nov. 23, 2025, with the release attached as an exhibit. [33]
Bottom line for General Mills stock watchers
General Mills stock rose on Dec. 17 because the company delivered a Q2 beat and—just as importantly for a cautious market—reaffirmed its FY2026 outlook while pointing to sequential improvement in volume and competitiveness. [34]
The investment debate now shifts to the next few quarters: whether the “remarkability” investments can keep volumes improving, whether International strength holds, and whether margin pressure begins to ease as the company cycles divestiture impacts and manages input costs and promotional intensity. [35]
References
1. www.reuters.com, 2. www.barrons.com, 3. www.generalmills.com, 4. www.barrons.com, 5. s29.q4cdn.com, 6. www.reuters.com, 7. www.generalmills.com, 8. s29.q4cdn.com, 9. www.generalmills.com, 10. s29.q4cdn.com, 11. www.generalmills.com, 12. s29.q4cdn.com, 13. www.barrons.com, 14. s29.q4cdn.com, 15. s29.q4cdn.com, 16. s29.q4cdn.com, 17. s29.q4cdn.com, 18. s29.q4cdn.com, 19. www.barrons.com, 20. www.barrons.com, 21. s29.q4cdn.com, 22. investors.generalmills.com, 23. investors.generalmills.com, 24. www.marketbeat.com, 25. www.investing.com, 26. www.benzinga.com, 27. www.marketbeat.com, 28. www.reuters.com, 29. s29.q4cdn.com, 30. www.barrons.com, 31. www.reuters.com, 32. s29.q4cdn.com, 33. www.sec.gov, 34. www.barrons.com, 35. s29.q4cdn.com
