General Mills (GIS ) Stock: Rises as Dividend Hold and Cost Cuts Support Gains

TLDR

• GIS rises 3.45% pre-market as dividend hold supports market confidence.

• General Mills targets $3B cost savings by fiscal 2030 after weak profit.

  

• Adjusted Q4 earnings rose 27% despite a large reported operating loss.

• Fiscal 2027 outlook points to softer earnings but improved brand investment.

• Dividend remains at $0.61 as General Mills protects shareholder returns.

General Mills (GIS) stock rose in pre-market trading after the company held its dividend and outlined deeper cost cuts. GIS gained 3.45% to $36.01 after closing at $34.80 in the previous session. The move followed fiscal 2026 results and a fiscal 2027 plan focused on savings, brand investment, and margin support.

General Mills, Inc., GIS

General Mills Reports Mixed Fourth-Quarter Results

General Mills reported fourth-quarter net sales of $4.6 billion, up 1% from the prior year. Organic net sales remained flat, while the 53rd week added support to reported sales. However, divestitures weighed on growth and offset part of the quarterly benefit.

The company posted an operating loss of $2.1 billion during the quarter. It blamed the loss on goodwill charges, brand intangible charges, and a Brazil divestiture valuation loss. Still, adjusted operating profit rose 13% in constant currency to $705 million.

Diluted loss per share reached $3.74, compared with earnings of $0.53 last year. Adjusted diluted earnings rose 27% in constant currency to $0.95 per share. As a result, the adjusted figures helped support the pre-market rebound.

Full-Year Results Show Pressure From Charges

For fiscal 2026, General Mills reported net sales of $18.4 billion, down 5% from last year. Organic net sales fell 2% as weaker consumer sentiment hurt category volume. The company also faced pressure from divestitures and promotional buying trends.

Full-year operating profit dropped 73% to $886 million. The decline came from impairment charges, the Brazil valuation loss, and lower gross profit dollars. However, the company partly offset that pressure with a gain from yogurt divestitures.

General Mills reported a full-year diluted loss of $0.16 per share. Adjusted diluted earnings fell 16% in constant currency to $3.55 per share. Meanwhile, operating cash flow declined to $2.2 billion from $2.9 billion last year.

Dividend Hold and Cost Savings Support Outlook

General Mills kept its quarterly dividend at $0.61 per share. The dividend will be paid on August 3, 2026, to shareholders of record on July 10. The company has paid dividends without interruption for 127 years.

The company also targeted $3 billion in cumulative cost savings by fiscal 2030. It expects about $2 billion from its Holistic Margin Management program. In addition, global transformation efforts should deliver another $1 billion in savings.

For fiscal 2027, General Mills expects organic net sales between down 1.5% and up 0.5%. It sees adjusted operating profit falling 8% to 13% in constant currency. Adjusted diluted earnings should range between $3.00 and $3.20 per share.

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