AI Takeaway
General Mills (GIS) reported a significant deterioration in FY2026 financial performance, with revenue declining 5.4% to $18.4B and a net loss of $87.6M driven by a 73.2% collapse in operating income and elevated SG&A expenses.
Revenue
$18.42B
-5.45% YoY
EPS (Basic)
$-0.16
-103.88% YoY
Gross Margin
8.7%
++1.14% YoY
Operating Income
$885.8M
-73.20% YoY
Filed · Source: SEC EDGAR 10-K filing
Total revenue fell 5.4% year-over-year from $19.5B to $18.4B in FY2026, reflecting broad-based volume and pricing pressures across General Mills' portfolio. This top-line contraction signals meaningful headwinds in consumer demand or competitive pricing dynamics.
Source: Source: 10-K Income Statement, Financial Data
Despite the revenue decline, gross profit rose 8.8% to $1.6B and gross margin expanded approximately 110 basis points to 8.7% from 7.6%, suggesting some improvement in input cost management or favorable product mix shifts.
Source: Source: 10-K Income Statement, Financial Data
Operating income fell sharply from $3.3B to $885.8M, a 73.2% year-over-year decline. This dramatic drop, despite improved gross profit, points to significant charges or impairments embedded in operating expenses, as SG&A remained elevated at $3.4B.
Source: Source: 10-K Income Statement, Financial Data
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Upgrade to unlockGeneral Mills reported a net loss of $87.6M in FY2026 compared to net income of $2.3B in the prior year, representing a 103.8% decline. This dramatic reversal raises concerns about the sustainability of profitability and may reflect large non-recurring charges. Continued losses could pressure the company's ability to service its substantial $13.5B long-term debt.
Source: Source: 10-K Income Statement & Balance Sheet, Financial Data
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Upgrade to unlock| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $18.42B | $19.49B | -5.45% |
Cost of Revenue | $12.23B | $12.75B | -4.11% |
Gross Profit | $1.6B | $1.47B | +8.79% |
Operating Income | $885.8M | $3.3B | -73.20% |
Net Income | $-87.6M | $2.3B | -103.82% |
EPS (Basic) | $-0.16 | $4.12 | -103.88% |
EPS (Diluted) | $-0.16 | $4.10 | -103.90% |
R&D Expense | $256M | $256.6M | -0.23% |
SG&A Expense | $3.39B | $3.45B | -1.66% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $30.02B | $33.07B | -9.24% |
Current Assets | $4.62B | $5.28B | -12.46% |
Total Liabilities | $22.64B | $23.86B | -5.13% |
Current Liabilities | $6.77B | $7.86B | -13.79% |
Stockholders' Equity | $7.37B | $9.2B | -19.90% |
Cash & Equivalents | $453.8M | $363.9M | +24.70% |
Long-Term Debt | $13.47B | $14.2B | -5.15% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $2.17B | $2.92B | -25.77% |
Investing Cash Flow | $1.26B | $-1.79B | +170.10% |
Financing Cash Flow | $-3.31B | $-1.18B | -180.91% |
Share Buybacks | $500.3M | $1.2B | -58.41% |
D&A | $555.2M | $539M | +3.01% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 8.7% | 7.6% | +1.14% |
Operating Margin | 4.8% | 17.0% | -12.15% |
Net Margin | -0.5% | — | — |
ROE | -1.2% | — | — |
ROA | -0.3% | — | — |
Current Ratio | $0.682 | — | — |
Debt to Equity | $3.072 | — | — |
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General Mills reported a net loss of $87.6M in FY2026, a dramatic reversal from net income of $2.3B in the prior year. Basic and diluted EPS both came in at -$0.16, compared to $4.12 and $4.10 respectively in FY2025.
GIS operating income collapsed 73.2% from $3.3B to $885.8M in FY2026, despite gross profit actually improving 8.8%. The sharp decline suggests significant non-recurring charges, impairments, or restructuring costs were recorded within operating expenses, as SG&A remained elevated at $3.4B.
The key takeaways from GIS's FY2026 10-K are: revenue declined 5.4% to $18.4B, the company swung to a net loss of $87.6M, and operating income fell 73.2%. On the positive side, gross margins improved to 8.7% and a large investing cash inflow of $1.26B suggests significant asset divestitures were completed during the year.
GIS's financial health shows some stress in FY2026: the current ratio of 0.68x indicates current liabilities exceed current assets, long-term debt stands at $13.5B with a debt-to-equity ratio of 3.07x, and stockholders' equity eroded 19.9% to $7.4B. Operating cash flow of $2.2B remains positive but declined 25.8% year-over-year, providing a buffer for near-term obligations.
The investing cash flow data strongly suggests GIS completed significant asset sales or divestitures in FY2026, as investing cash flow swung from an outflow of $1.79B to an inflow of $1.26B — a positive swing of over $3B. This may partly explain the 5.4% revenue decline, as divested businesses would no longer contribute to sales.