European Investor
01 Jul 2026, 14:35
General Mills (GIS) Stock Jumps 9% After Earnings Meet Expectations and Company Unveils Long-Term Growth Plan
General Mills (NYSE: GIS) shares surged approximately 8.7% on Wednesday after the food manufacturer reported fiscal fourth-quarter 2026 results in line with expectations and unveiled a long-term strategy aimed at restoring profitable growth through increased innovation and significant cost savings.
While the company reported a GAAP net loss due to large non-cash impairment charges, investors focused on stronger adjusted earnings, improving profitability, and an optimistic outlook for fiscal 2027.
# Adjusted Results Show Improving Momentum
General Mills reported fourth-quarter net sales of $4.6 billion, up 1% year over year, while organic net sales were flat.
Adjusted operating profit increased 13% in constant currency to $705 million, and adjusted diluted earnings per share rose 27% to $0.95. The improvement was driven by favorable pricing, product mix, and stronger operating execution.
Although the company posted a GAAP operating loss of $2.1 billion, this primarily reflected $1.8 billion of non-cash goodwill and brand impairment charges and a $1.0 billion valuation loss related to the planned divestiture of its Brazil business.
# Company Targets $3 Billion in Cost Savings
Management announced an ambitious plan to generate $3 billion in cumulative cost savings by fiscal 2030, with approximately $750 million expected in fiscal 2027 alone.
The company also plans to accelerate investment in product innovation, brand renovation, and marketing as it works to restore organic sales growth following a challenging fiscal 2026.
CEO Jeff Harmening said General Mills has completed its pricing investments and is now focused on improving brand competitiveness while increasing operational efficiency.
# Why GIS Stock Is Rising Today
Investors welcomed several positive developments from the earnings report:
* Fourth-quarter adjusted results met company expectations.
* Adjusted EPS increased 27% year over year.
* Adjusted operating profit rose 13%.
* Management introduced a $3 billion long-term cost savings program.
* The company outlined plans to improve organic growth through increased innovation and stronger brand investment.
Despite reporting large GAAP losses driven by non-cash accounting charges, investors appeared encouraged by General Mills' improving underlying performance and long-term profitability initiatives, sending the stock nearly 9% higher in Wednesday's trading.
General Mills (NYSE: GIS) shares surged approximately 8.7% on Wednesday after the food manufacturer reported fiscal fourth-quarter 2026 results in line with expectations and unveiled a long-term strategy aimed at restoring profitable growth through increased innovation and significant cost savings.
While the company reported a GAAP net loss due to large non-cash impairment charges, investors focused on stronger adjusted earnings, improving profitability, and an optimistic outlook for fiscal 2027.
# Adjusted Results Show Improving Momentum
General Mills reported fourth-quarter net sales of $4.6 billion, up 1% year over year, while organic net sales were flat.
Adjusted operating profit increased 13% in constant currency to $705 million, and adjusted diluted earnings per share rose 27% to $0.95. The improvement was driven by favorable pricing, product mix, and stronger operating execution.
Although the company posted a GAAP operating loss of $2.1 billion, this primarily reflected $1.8 billion of non-cash goodwill and brand impairment charges and a $1.0 billion valuation loss related to the planned divestiture of its Brazil business.
# Company Targets $3 Billion in Cost Savings
Management announced an ambitious plan to generate $3 billion in cumulative cost savings by fiscal 2030, with approximately $750 million expected in fiscal 2027 alone.
The company also plans to accelerate investment in product innovation, brand renovation, and marketing as it works to restore organic sales growth following a challenging fiscal 2026.
CEO Jeff Harmening said General Mills has completed its pricing investments and is now focused on improving brand competitiveness while increasing operational efficiency.
# Why GIS Stock Is Rising Today
Investors welcomed several positive developments from the earnings report:
* Fourth-quarter adjusted results met company expectations.
* Adjusted EPS increased 27% year over year.
* Adjusted operating profit rose 13%.
* Management introduced a $3 billion long-term cost savings program.
* The company outlined plans to improve organic growth through increased innovation and stronger brand investment.
Despite reporting large GAAP losses driven by non-cash accounting charges, investors appeared encouraged by General Mills' improving underlying performance and long-term profitability initiatives, sending the stock nearly 9% higher in Wednesday's trading.
