General Mills Cuts Full-Year Guidance, Shakes Industry
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 22 2026
0mins
Source: NASDAQ.COM
- Guidance Cut: On February 17, General Mills unexpectedly lowered its fiscal 2026 guidance, now expecting organic net sales to decline between 1.5% and 2%, down from a previous range of a 1% decline to a 1% increase, reflecting weakened consumer confidence and increased market uncertainty that directly impacts sales growth.
- Earnings Forecast Decline: The adjusted diluted earnings per share (EPS) is now expected to fall by 16% to 20%, a significant increase from the prior forecast of a 10% to 15% decline, which negatively affects the company's profitability and may further weaken investor confidence.
- Dividend Safety: Despite facing earnings and margin compression, General Mills forecasts a free cash flow of $3.28 per share, sufficient to cover its annual dividend of $2.44, demonstrating robust cash flow management that allows investors to hold their positions with confidence.
- Competitive Pressure: Both General Mills and Campbell's are under pressure from declining brand value and changing consumer preferences; although both companies are better positioned to adapt to healthier snack and meal trends, the overall market environment remains challenging, potentially impacting future growth prospects.
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Analyst Views on GIS
Wall Street analysts forecast GIS stock price to rise
15 Analyst Rating
4 Buy
9 Hold
2 Sell
Hold
Current: 33.470
Low
47.00
Averages
52.38
High
63.00
Current: 33.470
Low
47.00
Averages
52.38
High
63.00
About GIS
General Mills, Inc. is a global manufacturer and marketer of branded consumer foods. Its segments include North America Retail; International; North America Pet, and North America Foodservice. The North America Retail segment reflects business with a variety of grocery stores, mass merchandisers, membership stores, natural food chains, drug, dollar and discount chains, convenience stores, and e-commerce grocery providers. The International segment consists of retail and foodservice businesses outside the United States and Canada. Its product categories include super-premium ice cream and frozen desserts, meal kits, salty snacks, snack bars, and others. The North America Pet segment includes pet food products sold in the United States and Canada in national pet superstore chains, e-commerce retailers, grocery stores, regional pet store chains, mass merchandisers, and others. The North America Foodservice segment consists of foodservice businesses in the United States and Canada.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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