AI Takeaway
GIS reported a sharp Q3 FY2026 earnings decline with revenue falling 8.4% YoY to $4.44B and net income dropping 51.6% to $303.1M, reflecting significant margin compression and volume pressures across its business.
Revenue
$4.44B
-8.37% YoY
EPS (Basic)
$0.57
-50.00% YoY
Operating Income
$524.6M
-41.15% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Revenue fell 8.4% YoY from $4.84B to $4.44B in Q3 FY2026, indicating meaningful volume and/or pricing headwinds. This broad-based top-line contraction suggests consumers may be trading down or reducing purchases of GIS branded products amid ongoing cost-of-living pressures.
Source: Source: 10-Q Income Statement
Operating income dropped 41.1% YoY from $891.4M to $524.6M, with operating margin contracting sharply from 18.4% to 11.8%. This disproportionate decline relative to revenue suggests elevated input costs, restructuring charges, or unfavorable product mix are weighing heavily on profitability.
Source: Source: 10-Q Income Statement
Net income fell 51.6% to $303.1M and diluted EPS declined 50.0% to $0.56 from $1.12 in the prior-year period, reflecting both the operating income decline and likely higher below-the-line costs or reduced non-operating income.
Source: Source: 10-Q Income Statement
2 more insights available
Upgrade to unlockGIS's current ratio stands at only 0.56, meaning current liabilities of $8.69B significantly exceed current assets of $4.89B. This liquidity gap widened as current liabilities grew 10.3% YoY while current assets fell 7.0%, raising near-term refinancing and working capital concerns.
Source: Source: 10-Q Balance Sheet
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Upgrade to unlockReported EPS of $0.64 versus the $0.73 analyst consensus — a -12.7% miss for Q3 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $4.44B | $4.84B | -8.37% |
Cost of Revenue | $3.07B | $3.2B | -4.16% |
Operating Income | $524.6M | $891.4M | -41.15% |
Net Income | $303.1M | $625.6M | -51.55% |
EPS (Basic) | $0.57 | $1.14 | -50.00% |
EPS (Diluted) | $0.56 | $1.12 | -50.00% |
SG&A Expense | $812.9M | $844.4M | -3.73% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $32.4B | $32.71B | -0.93% |
Current Assets | $4.89B | $5.26B | -6.99% |
Total Liabilities | $23.05B | $23.19B | -0.64% |
Current Liabilities | $8.69B | $7.88B | +10.27% |
Stockholders' Equity | $9.34B | $9.26B | +0.86% |
Cash & Equivalents | $785.5M | $521.3M | +50.68% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash FlowYTD | $1.61B | $2.31B | -30.02% |
Investing Cash FlowYTD | $1.43B | $-1.58B | +190.77% |
Financing Cash FlowYTD | $-2.64B | $-609.7M | -333.72% |
Share BuybacksYTD | $500.3M | $901.9M | -44.53% |
D&AYTD | $416.1M | $403.4M | +3.15% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 11.8% | 18.4% | -6.58% |
Net Margin | 6.8% | — | — |
ROE | 3.2% | — | — |
ROA | 0.9% | — | — |
Current Ratio | $0.563 | — | — |
Debt to Equity | $2.467 | — | — |
Other companies in Packaged Foods & Meats
GIS reported a significant earnings decline in Q3 FY2026, with net income falling 51.6% YoY to $303.1M and diluted EPS dropping 50.0% to $0.56 from $1.12. Operating income also fell sharply by 41.1% to $524.6M, far outpacing the 8.4% revenue decline, indicating severe margin compression.
GIS revenue declined 8.4% YoY to $4.44B in Q3 FY2026, down from $4.84B in the prior-year period. While specific segment details were not available in the provided data, the broad-based decline suggests volume losses and/or pricing pressure in its core consumer food categories, potentially driven by consumers trading down to private-label alternatives.
GIS's financial health shows some stress: its current ratio of 0.56 indicates current liabilities ($8.69B) significantly exceed current assets ($4.89B), and its debt-to-equity ratio of 2.47 reflects high leverage. On the positive side, cash and equivalents rose 50.7% YoY to $785.5M, partly supported by what appear to be asset sale proceeds.
On a YTD basis through Q3 FY2026, GIS repurchased $500.3M in shares, down 44.5% from $901.9M in the same period of the prior fiscal year. This reduction likely reflects the company's weaker earnings and cash flow generation, as well as potentially prioritizing balance sheet management.
The most pressing risks include a dangerously low current ratio of 0.56 signaling near-term liquidity pressure, high financial leverage with a debt-to-equity ratio of 2.47, and a 51.6% collapse in net income that raises questions about dividend sustainability. Continued volume and pricing headwinds in core food categories could further pressure the top line if consumer behavior does not improve.