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GENERAL MILLS INC (GIS)·Q4 2025 Earnings Summary

Executive Summary

  • Q4 2025 revenue was $4.56B, down 3% year over year; GAAP diluted EPS fell to $0.53, while adjusted EPS was $0.74. Organic sales declined 3% with a 2-pt headwind from trade expense timing; gross margin compressed 340 bps to 32.4% .
  • Versus S&P Global consensus, GIS delivered an adjusted EPS beat (actual $0.74 vs $0.711)* but missed on revenue (actual $4.56B vs $4.60B); EBITDA was approximately in line ($750M vs $750M). Values retrieved from S&P Global.
  • Management introduced FY26 guidance: organic net sales down 1% to up 1%, adjusted operating profit and adjusted diluted EPS down 10–15% (constant currency), free cash flow conversion ≥95%; plus ~$100M transformation savings and 5% HMM COGS savings, with divestitures/acquisitions/FX/53rd week reducing net sales growth ~4% .
  • Strategic catalysts: Blue Buffalo “Love Made Fresh” national fresh pet launch later in calendar 2025 and Edgard & Cooper U.S. launch; Board raised the quarterly dividend to $0.61 (+2%) .

What Went Well and What Went Wrong

  • What Went Well

    • “The investments we made… to bring consumers more value worked as we expected, driving improved volume and pound share trends in the fourth quarter” — CEO Jeff Harmening, with organic pound volume flat YoY and improved share in 64% of top 10 U.S. categories .
    • Blue Buffalo fresh pet launch (“Love Made Fresh”) positions GIS to participate in a ~$3B subcategory, with multi-format recipes and national rollout later in 2025; Edgard & Cooper brand launching in PetSmart in July .
    • International segment delivered 11% revenue growth and +50% operating profit in Q4 on favorable price/mix, with strong growth in Brazil and distributor markets .

  • What Went Wrong

    • Gross margin fell 340 bps in Q4 to 32.4% and adjusted gross margin fell 220 bps, driven by higher input costs, unfavorable mark-to-market, and price/mix; operating margin dropped 540 bps to 11.1% .
    • North America Retail net sales fell 10% (to $2.56B) and segment operating profit fell 29%, pressured by unfavorable price/mix, input inflation, and lower volume; trade expense timing was a 17-pt headwind to operating profit growth .
    • Combined after-tax JVs swung to a $6M loss (vs +$19M) due to a CPW non-cash impairment tied to supply chain simplification; full-year JV earnings declined to $58M (vs $85M) .

Financial Results

Consolidated Performance (Prior Two Quarters → Current Quarter)

MetricQ2 2025Q3 2025Q4 2025
Net Sales ($USD Billions)$5.240 $4.842 $4.556
Gross Margin (%)36.9% 33.9% 32.4%
Operating Profit Margin (%)20.6% 18.4% 11.1%
Diluted EPS ($USD)$1.42 $1.12 $0.53
Adjusted Gross Margin (%)36.3% 33.4% 32.7%
Adjusted Operating Profit Margin (%)20.3% 16.5% 13.7%
Adjusted Diluted EPS ($USD)$1.40 $1.00 $0.74

Q4 2025 vs Prior Year

MetricQ4 2024Q4 2025YoY Change
Net Sales ($USD Billions)$4.714 $4.556 (3%)
Gross Margin (%)35.8% 32.4% (340 bps)
Diluted EPS ($USD)$0.98 $0.53 (46%)
Adjusted Operating Profit Margin (%)17.0% 13.7% (330 bps)
Adjusted Diluted EPS ($USD)$1.01 $0.74 (27%)

Q4 2025 vs Consensus Estimates (S&P Global)

MetricConsensusActual Q4 2025Surprise
Revenue ($USD Billions)$4.595*$4.556 Miss*
Adjusted EPS ($USD)$0.711*$0.74 Beat*
EBITDA ($USD Millions)$750*~$750*In line*

Values retrieved from S&P Global.

Segment Performance (Q4 2025)

SegmentNet Sales ($USD Millions)YoY %Operating Profit ($USD Millions)YoY %
North America Retail$2,559.8 (10%) $473.8 (29%)
International$738.9 +11% $33.7 +50%
North America Pet$675.2 +12% $140.1 (3%)
North America Foodservice$579.4 (2%) $83.1 +5%

Q4 2025 KPIs and Drivers

KPIQ2 2025Q3 2025Q4 2025
Organic Net Sales Growth (%)+1% (5%) (3%)
Trade/Timing Impact~+1.5 pts net sales, +6 pts op profit ~4-pt retailer inventory reductions and reversal of prior timing ~2-pt organic net sales headwind; ~150 bps adjusted GM headwind; ~13-pt op profit growth headwind
JV After-Tax Earnings ($USD Millions)$30 (Q2) $14 (Q3) $(6) (Q4)

FY25 Cash Flow and Capital Allocation

MetricFY25
Cash from Operations ($USD Billions)$2.918
Capital Investments ($USD Billions)$0.625
Free Cash Flow ($USD Billions)$2.293
FCF Conversion (%)97%
Dividends Paid ($USD Billions)$1.339
Share Repurchases ($USD Billions)$1.203

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Organic Net Sales GrowthFY26N/ADown 1% to up 1% New
Adjusted Operating Profit Growth (CC)FY26N/ADown 10–15% from $3.4B base New
Adjusted Diluted EPS Growth (CC)FY26N/ADown 10–15% from $4.21 base New
HMM SavingsFY26≥5% of COGS (context Q3) ≥5% of COGS reaffirmed Maintained
Global Transformation SavingsFY26≥$100M (context Q3) ~$100M incremental savings Maintained
Net Sales Headwind (FX/divestitures/acquisitions/53rd week)FY26N/A~4% reduction to net sales growth New
DividendsAug 1, 2025$0.60/qtr prior$0.61/qtr (+2%) Raised
Restructuring & Transaction/Integration CostsFY26N/A~$90–95M expected New
Yogurt Transaction CloseFY26 AssumptionPending (Q3) Assumes U.S. yogurt close end of June 2025 (subsequently completed June 30) Finalized

Earnings Call Themes & Trends

TopicQ2 2025 (Dec)Q3 2025 (Mar)Q4 2025 (Jun)Trend
Consumer value & pricingBegan targeted promo/value; timing tailwinds aided results Reinforce value realignment; “fewer, bigger” innovation; sharpen price points on Blue Buffalo, Pillsbury, Totino’s Value investments widened; price/mix down modestly; targeted actions (not race to bottom) Continued emphasis; price actions targeted
Innovation (protein focus)Expanded protein lineup (e.g., Cheerios Protein) “Fewer but bigger” launches; stronger support behind protein-led innovations (Cheerios Protein, Nature Valley Granola Protein) ~$100M idea pipeline; protein-led innovation exceeding expectations (Cheerios Protein) Building momentum
Pet strategyNAR Pet back to growth; inventory rebuild Stability returning; wet/treats improving; dry dog soft; inventory volatility acknowledged Fresh pet launch at national scale; investment multi-year; confidence in profitability at scale Strategic expansion; multi-year spend
Category/macroCategories growing below long-term algos; invest for competitiveness Categories ~1% growth; limited price/mix; consumer confidence/value sensitivity; GLP-1 noted but value is key driver Similar outlook; plan for volume-led organic growth; tariff impacts cited Cautious macro; focus on share
Supply chain & tariffsNo material FX impact expected in FY25 HMM ≥5%, added cost efficiencies; FX immaterial; yogurt divestiture headwind to profit New tariffs part of FY26 margin headwinds; CPW impairment tied to supply chain simplification Tariff headwinds increasing
Portfolio reshapeWhitebridge acquisition pending/closed; yogurt divestitures expected Whitebridge closed; Canada yogurt gain; U.S. yogurt pending U.S. yogurt sale completed June 30 ; fresh pet launch announced Portfolio shift completed

Management Commentary

  • CEO: “Our number one goal in fiscal 2026 is to restore volume-driven organic sales growth… invest further in consumer value, product news, innovation, and brand building… highlighted by Blue Buffalo’s national launch into fresh pet food” .
  • CFO: FY26 margin headwinds include investment behind fresh, tariffs, stranded costs post-yogurt divestiture; expect mitigation over time and structural recovery as scale builds .
  • CEO on pricing posture: “It’s not going to be a race to the bottom… actions are targeted… get pricing ‘in the zone’ so marketing works effectively” .
  • Pet outlook: “We have gone from a business that had declined the prior year to one that we grew a little bit… goal is to grow the core Blue Buffalo and add fresh launch on top” .

Q&A Highlights

  • Reinvestment and margins: Management framed FY26 as an investment year with temporary margin drags (fresh launch scaling, tariffs, stranded costs); confidence in rebuilding margins over a reasonable timeframe .
  • Pet inventory and underlying trend: Retail pet inventory volatility acknowledged; underlying pet business stabilizing with cat growth, Tiki Cat integration, and improved advertising; fresh launch will be nationally scaled .
  • Phasing of FY26 growth: Expect trade expense timing headwinds to ease as the year progresses, with sequential improvement in topline as value investments and innovation ramp .
  • Pricing strategy: Targeted price actions to restore competitiveness without broad price leadership; increased media and innovation spend will complement value moves .
  • Category outlook: Enterprise categories growing below long-term (2–3%); plan is to improve competitiveness and volume share first, then rebuild dollar share with marketing and innovation .

Estimates Context

  • Q4 2025 results vs consensus: Adjusted EPS beat ($0.74 vs $0.711); revenue missed ($4.56B vs $4.60B); EBITDA effectively in line (~$750M)*. Values retrieved from S&P Global.
  • Forward estimates context: Q1 2026 EPS actual modestly exceeded consensus, while management’s FY26 guide implies estimate cuts to operating profit/EPS amid planned reinvestment and tariff headwinds .
  • Implications: Street models likely need lower FY26 margins and EPS, with revenue trajectories tied to volume recapture and pet launch execution; watch mix/pricing normalization and HMM/transformation savings cadence .

Key Takeaways for Investors

  • Near term: The quarter’s adjusted EPS beat was driven despite gross margin compression; revenue miss and margin headwinds suggest cautious sentiment until value investments translate to dollar share recovery .
  • Medium term: FY26 guide embeds reinvestment and tariff drag; transformation and HMM savings (~$100M + 5% COGS) should offset over time as Blue Buffalo fresh scales .
  • Pet launch is a major catalyst: National fresh rollout and Edgard & Cooper U.S. entry expand GIS’s pet portfolio; execution quality and trial-to-repeat conversion are key .
  • Portfolio reshape complete: U.S. yogurt divestiture closed June 30; expect stranded cost clean-up and capital redeployment to buybacks/debt reduction .
  • Monitor category/value signals: Pricing “in the zone,” heavier media, and protein-led innovation should drive volume share first; watch cereal, soup, snacks seasonal and innovation cycles .
  • Risk watch: Input cost inflation, tariffs, CPW supply-chain actions, and consumer confidence remain live variables; FX impact guided immaterial for FY26 adjusted metrics .
Note: All consensus and estimate values marked with * are from S&P Global. Values retrieved from S&P Global.

Sources:
- Q4 2025 press release and financial statements **[40704_a3b68e8a126b46d6839aaf77de4865e5_0]** **[40704_a3b68e8a126b46d6839aaf77de4865e5_1]** **[40704_a3b68e8a126b46d6839aaf77de4865e5_5]** **[40704_a3b68e8a126b46d6839aaf77de4865e5_6]** **[40704_a3b68e8a126b46d6839aaf77de4865e5_7]** **[40704_a3b68e8a126b46d6839aaf77de4865e5_8]** **[40704_a3b68e8a126b46d6839aaf77de4865e5_9]** **[40704_a3b68e8a126b46d6839aaf77de4865e5_10]** **[40704_a3b68e8a126b46d6839aaf77de4865e5_11]** **[40704_a3b68e8a126b46d6839aaf77de4865e5_12]** **[40704_a3b68e8a126b46d6839aaf77de4865e5_13]** **[40704_a3b68e8a126b46d6839aaf77de4865e5_14]** **[40704_a3b68e8a126b46d6839aaf77de4865e5_24]** **[40704_a3b68e8a126b46d6839aaf77de4865e5_25]** **[40704_a3b68e8a126b46d6839aaf77de4865e5_26]** **[40704_a3b68e8a126b46d6839aaf77de4865e5_28]** **[40704_a3b68e8a126b46d6839aaf77de4865e5_29]** **[40704_a3b68e8a126b46d6839aaf77de4865e5_30]**
- Q4 2025 8-K and Exhibit 99 **[40704_0001193125-25-146132_d49017d8k.htm:1]** **[40704_0001193125-25-146132_d49017dex99.htm:0]** **[40704_0001193125-25-146132_d49017dex99.htm:1]** **[40704_0001193125-25-146132_d49017dex99.htm:2]** **[40704_0001193125-25-146132_d49017dex99.htm:3]** **[40704_0001193125-25-146132_d49017dex99.htm:4]** **[40704_0001193125-25-146132_d49017dex99.htm:5]** **[40704_0001193125-25-146132_d49017dex99.htm:6]** **[40704_0001193125-25-146132_d49017dex99.htm:7]** **[40704_0001193125-25-146132_d49017dex99.htm:8]** **[40704_0001193125-25-146132_d49017dex99.htm:9]** **[40704_0001193125-25-146132_d49017dex99.htm:10]** **[40704_0001193125-25-146132_d49017dex99.htm:11]** **[40704_0001193125-25-146132_d49017dex99.htm:12]** **[40704_0001193125-25-146132_d49017dex99.htm:13]** **[40704_0001193125-25-146132_d49017dex99.htm:14]** **[40704_0001193125-25-146132_d49017dex99.htm:15]** **[40704_0001193125-25-146132_d49017dex99.htm:16]** **[40704_0001193125-25-146132_d49017dex99.htm:17]** **[40704_0001193125-25-146132_d49017dex99.htm:18]** **[40704_0001193125-25-146132_d49017dex99.htm:19]** **[40704_0001193125-25-146132_d49017dex99.htm:20]** **[40704_0001193125-25-146132_d49017dex99.htm:21]** **[40704_0001193125-25-146132_d49017dex99.htm:22]** **[40704_0001193125-25-146132_d49017dex99.htm:23]** **[40704_0001193125-25-146132_d49017dex99.htm:24]**
- Q4 2025 earnings call Q&A transcript **[0000040704_2255273_0]** **[0000040704_2255273_1]** **[0000040704_2255273_2]** **[0000040704_2255273_3]** **[0000040704_2255273_4]** **[0000040704_2255273_5]** **[0000040704_2255273_6]** **[0000040704_2255273_7]** **[0000040704_2255273_8]** **[0000040704_2255273_9]** **[0000040704_2255273_10]**
- Prior quarters: Q3 2025 press release and call **[40704_804a12fba3584f0a9a4d80b4380d0934_0]** **[40704_804a12fba3584f0a9a4d80b4380d0934_1]** **[40704_804a12fba3584f0a9a4d80b4380d0934_2]** **[40704_804a12fba3584f0a9a4d80b4380d0934_3]** **[40704_804a12fba3584f0a9a4d80b4380d0934_4]** **[40704_804a12fba3584f0a9a4d80b4380d0934_5]** **[40704_804a12fba3584f0a9a4d80b4380d0934_6]** **[40704_804a12fba3584f0a9a4d80b4380d0934_7]** **[40704_804a12fba3584f0a9a4d80b4380d0934_9]** **[40704_804a12fba3584f0a9a4d80b4380d0934_10]** **[40704_804a12fba3584f0a9a4d80b4380d0934_11]** **[40704_804a12fba3584f0a9a4d80b4380d0934_12]** **[40704_804a12fba3584f0a9a4d80b4380d0934_13]** **[40704_804a12fba3584f0a9a4d80b4380d0934_14]** **[40704_804a12fba3584f0a9a4d80b4380d0934_15]** **[40704_804a12fba3584f0a9a4d80b4380d0934_16]** **[40704_804a12fba3584f0a9a4d80b4380d0934_17]** **[40704_804a12fba3584f0a9a4d80b4380d0934_18]** **[40704_804a12fba3584f0a9a4d80b4380d0934_19]** **[40704_804a12fba3584f0a9a4d80b4380d0934_20]** **[40704_804a12fba3584f0a9a4d80b4380d0934_21]** **[40704_804a12fba3584f0a9a4d80b4380d0934_22]** **[40704_804a12fba3584f0a9a4d80b4380d0934_23]** **[40704_804a12fba3584f0a9a4d80b4380d0934_24]** **[40704_804a12fba3584f0a9a4d80b4380d0934_25]** **[40704_GIS_3420962_1]** **[40704_GIS_3420962_3]** **[40704_GIS_3420962_4]** **[40704_GIS_3420962_5]** **[40704_GIS_3420962_6]** **[40704_GIS_3420962_8]** **[40704_GIS_3420962_9]** **[40704_GIS_3420962_10]** **[40704_GIS_3420962_11]**
- Q2 2025 press release **[40704_6955bc1b099140819f31f95bf3e8f707_0]** **[40704_6955bc1b099140819f31f95bf3e8f707_1]** **[40704_6955bc1b099140819f31f95bf3e8f707_2]** **[40704_6955bc1b099140819f31f95bf3e8f707_3]** **[40704_6955bc1b099140819f31f95bf3e8f707_4]** **[40704_6955bc1b099140819f31f95bf3e8f707_5]** **[40704_6955bc1b099140819f31f95bf3e8f707_6]** **[40704_6955bc1b099140819f31f95bf3e8f707_7]** **[40704_6955bc1b099140819f31f95bf3e8f707_8]** **[40704_6955bc1b099140819f31f95bf3e8f707_9]** **[40704_6955bc1b099140819f31f95bf3e8f707_10]** **[40704_6955bc1b099140819f31f95bf3e8f707_11]** **[40704_6955bc1b099140819f31f95bf3e8f707_12]** **[40704_6955bc1b099140819f31f95bf3e8f707_13]** **[40704_6955bc1b099140819f31f95bf3e8f707_14]** **[40704_6955bc1b099140819f31f95bf3e8f707_15]** **[40704_6955bc1b099140819f31f95bf3e8f707_16]** **[40704_6955bc1b099140819f31f95bf3e8f707_17]** **[40704_6955bc1b099140819f31f95bf3e8f707_18]** **[40704_6955bc1b099140819f31f95bf3e8f707_19]** **[40704_6955bc1b099140819f31f95bf3e8f707_20]** **[40704_6955bc1b099140819f31f95bf3e8f707_21]** **[40704_6955bc1b099140819f31f95bf3e8f707_22]** **[40704_6955bc1b099140819f31f95bf3e8f707_23]**
- Blue Buffalo fresh/Edgard & Cooper U.S. launch **[40704_d4a7cdd1f2514035a66ed4fc9889d88e_0]**
- Yogurt business sale completion **[40704_8d4855efe2744f1da2b1dfcadba20a4b_0]**