TLDR
- General Mills stock rose about 1% in Wednesday premarket trading.
- Adjusted EPS of $0.75 beat Wall Street’s $0.72 estimate.
- Net sales fell 2.8% to $4.39 billion but topped expectations.
- Organic sales were roughly flat, while North America Retail sales fell 6.6%.
- General Mills reaffirmed its fiscal 2027 sales and earnings guidance.
General Mills (GIS) stock rose about 1.2% in Wednesday premarket trading to roughly $35.86 after the company beat first-quarter earnings and sales expectations. GIS closed Tuesday at $35.45 and remains down about 24% in 2026.
The Cheerios maker reported adjusted earnings of $0.75 per stock for its fiscal first quarter ended Aug. 30. Analysts had expected $0.72, while adjusted earnings were $0.86 a year earlier.
GENERAL MILLS $GIS Q1’27 EARNINGS HIGHLIGHTS
🔹 Revenue: $4.4B (Est. $4.35B) 🟢; -3% YoY
🔹 Adj. EPS: $0.75 (Est. $0.72) 🟢; -13% CC
🔹 Adjusted Oper Profit: $634M (Est. $604M) 🟢
🔹 Organic Net Sales Growth: FlatReaffirms FY27 Guide:
🔹 Organic Net Sales: -1.5%-+0.5%
🔹… pic.twitter.com/vaYbnDUHzT— Wall St Engine (@wallstengine) September 23, 2026
Net sales fell 2.8% to $4.39 billion but came in slightly ahead of the $4.35 billion Wall Street estimate. General Mills said the decline primarily reflected the sale of its U.S. yogurt business.
Sales Remain the Bigger Question
Organic net sales, which remove effects such as acquisitions and divestitures, were essentially flat from a year earlier. That offered some evidence of stabilization, but the company’s largest business continued to struggle.
North America Retail sales fell 6.6% to about $2.45 billion. International sales provided some relief, rising 4.5% to $794 million, while North America Pet sales were roughly flat.
General Mills has spent the past year cutting prices and improving consumer value as shoppers became more sensitive to food costs. Management has also introduced new products aimed at areas such as protein, fiber, snacks and premium pet food.
The company has said recent retail trends have begun improving, with consumers responding to some of those product launches. CEO Jeff Harmening described the start of fiscal 2027 as encouraging while acknowledging that the operating environment remains volatile.
Profitability is still under pressure. Adjusted gross margin declined 90 basis points to 33.3% as higher input costs offset some of the company’s cost-saving efforts.
General Mills Keeps 2027 Guidance
General Mills maintained its fiscal 2027 outlook, calling for organic sales growth between a 1.5% decline and a 0.5% increase. Adjusted earnings are still expected to range from $3.00 to $3.20 per stock.
The company also expects adjusted operating profit to decline between 8% and 13% in constant currency. Management had already reaffirmed those targets at the Barclays Global Consumer Staples Conference on Sept. 8.
Investors are balancing better-than-expected quarterly results against a weak longer-term stock trend. GIS has fallen more than 11% over the past month and nearly 24% year to date, reflecting concern over sluggish demand and margin pressure.
The main risks remain weak consumer demand, higher labor and ingredient costs, pricing pressure and the possibility that General Mills’ product investments take longer than expected to lift sales. The earnings beat helps, but organic growth remains close to zero.
For now, investors appear mildly encouraged that results exceeded expectations without forcing another guidance reduction. The latest development is General Mills’ decision to maintain its fiscal 2027 outlook despite lower reported sales and continued weakness in North America Retail.
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