General Mills Cuts 2026 Sales Outlook to 1.5%-2%, Warns EPS Could Fall 20%
General Mills cut its 2026 net sales outlook to a 1.5%-2% decline from prior guidance of down 1% to up 1% and now forecasts EPS to drop up to 20%. It slashed prices on two-thirds of its North American portfolio in December, lifting volumes by eight percentage points.
1. Revised 2026 Guidance
General Mills narrowed its fiscal 2026 organic net sales outlook to a 1.5%–2% decline, down from a previous range of down 1% to up 1%. The company now expects adjusted earnings per share to fall by as much as 20% in constant currency, reflecting slower volume recovery and higher input costs.
2. Strategic Price Cuts
In December, the company lowered prices on roughly two-thirds of its North American retail portfolio, setting thresholds designed to match consumer willingness to pay. This pricing strategy drove an eight percentage-point increase in volume, though it also compressed margins amid ongoing inflationary pressures.
3. Portfolio Optimization and Cost Pressures
Management cited weak consumer sentiment, elevated uncertainty and tariff impacts as headwinds to category growth. To improve efficiency, the company plans to remove about 20% of its least productive products and focus resources on higher-growth segments.