General Mills cuts fiscal 2026 outlook amid challenging consumer environment

General Mills Inc. (NYSE: GIS) revised its fiscal 2026 financial outlook downward, citing weak consumer sentiment and market volatility that have slowed volume recovery efforts.

The Minneapolis-based food company now expects organic net sales to decline 1.5% to 2%, compared to its previous forecast of down 1% to up 1%. Adjusted operating profit and adjusted diluted earnings per share are projected to fall 16% to 20% in constant currency, versus the prior range of down 10% to 15%.

Chief Executive Officer Jeff Harmening presented the updated guidance at the Consumer Analyst Group of New York conference. "Amid a volatile operating environment, we remain focused on what we can control by executing our Remarkability playbook," Harmening said.

The company outlined its Accelerate strategy, which focuses on brand experiences, consumer-centric innovation, and digital capabilities. General Mills expects to deliver approximately 25% increase in net sales from new products in fiscal 2026 by focusing on bold flavors, familiar favorites, and better-for-you benefits.

The company maintains its expectation for free cash flow conversion of at least 95% of adjusted after-tax earnings. General Mills has returned more than $14 billion to shareholders through dividends and share repurchases since fiscal 2019.

General Mills generated fiscal 2025 net sales of $19 billion and operates a portfolio that includes eight brands generating more than $1 billion in retail sales each, including Cheerios, Nature Valley, and Häagen-Dazs.

The revised outlook reflects challenging market conditions including heightened uncertainty and significant volatility that have impacted consumer purchase patterns and category growth, according to the company's press release statement.

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