General Mills Q1 EPS Falls 67% on Yogurt Divestiture Lapping; Reaffirms FY27 Outlook
GIS is trading near its 52-week low of $31.75 (12% above the low).
Summary
General Mills reported Q1 FY2027 results with reported EPS down 67% due to lapping last year's yogurt divestiture gain, but adjusted EPS down only 13%. The company reaffirmed its full-year outlook.
Key Events · Earnings and Guidance · GIS
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Q1 EPS Down 67% on Divestiture Lapping
Reported diluted EPS of $0.74 fell 67% year-over-year, driven primarily by the $1.05B gain on the U.S. yogurt divestiture recorded in Q1 FY2026. Adjusted diluted EPS of $0.75 was down 13% in constant currency.
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Organic Net Sales Flat
Organic net sales were flat year-over-year, with North America Retail down 3%, North America Pet flat, North America Foodservice up 4%, and International up 4%. Total reported net sales of $4.39B were down 3% due to the yogurt divestiture.
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FY2027 Guidance Reaffirmed
Management reaffirmed full-year fiscal 2027 targets: organic net sales between -1.5% and +0.5%, adjusted operating profit down 13% to 8% in constant currency, and adjusted diluted EPS of $3.00 to $3.20.
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Brazil Divestiture Completed
The sale of the Brazil business to 3corações closed on September 2, 2026, subsequent to quarter end. The company recorded an additional $24M non-cash pre-tax valuation loss on the held-for-sale business in Q1.
Analysis · GIS · Manufacturing
General Mills reported Q1 FY2027 results that were heavily distorted by the prior-year $1.05B yogurt divestiture gain. Reported diluted EPS of $0.74 was down 67% year-over-year, but adjusted EPS of $0.75 was down only 13% in constant currency. Organic net sales were flat, showing stabilization after last year's declines. Management reaffirmed full-year adjusted EPS guidance of $3.00-$3.20, signaling confidence in the turnaround despite a challenging consumer environment. The Brazil divestiture closed on September 2, 2026, removing another overhang.
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At the time of this filing, GIS was trading at $35.50 on NYSE in the Manufacturing sector, with a market capitalization of approximately $19B. The 52-week trading range was $31.75 to $51.33. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.