General Mills Raises 2026 Sales Decline to 2%, Cuts EPS Outlook by 20%
General Mills raised its fiscal 2026 sales decline guidance to 1.5%–2% and now forecasts operating profit and EPS plunges of 16%–20%, up from prior 10%–15% drops. Bank of America cut its price target to $55 from $61; Bernstein cut to $53, while shares are down 26% year-over-year and 2.4% year-to-date.
1. Fiscal 2026 Guidance Revision
General Mills updated its fiscal year 2026 outlook, raising its anticipated sales decline to between 1.5% and 2% from an earlier range spanning a 1% drop to 1% growth. The company also now expects operating profit and earnings per share to fall 16%–20%, steeper than previous 10%–15% projections.
2. Analyst Price Target Cuts
In response to the guidance revision, Bank of America lowered its share price target from $61 to $55 while maintaining a Buy rating, and Bernstein reduced its target to $53 and kept a Market Perform rating, reflecting concerns over North American retail pressures.
3. Stock Performance
General Mills shares have underperformed, trading down approximately 26% over the past twelve months and slipping 2.4% year-to-date as investors weigh the firm’s weaker outlook against valuation multiples near 12 times earnings.
4. Jim Cramer Commentary
Jim Cramer labeled General Mills the “benchmark of bad” following the preannouncement, noting that the stock trades at roughly 12 times earnings and recalling the company’s previous reputation as an industry leader.