General Mills, Inc. (NYSE:GIS), the maker of Cheerios, Blue Buffalo pet food, and other household staples, reported fiscal 2026 first-quarter results that came in slightly ahead of Wall Street expectations, but shares traded lower after the release.
Adjusted earnings per share came in at 86 cents per share, topping analyst estimates of 81 cents per share, while revenue of $4.52 billion edged past projections of $4.51 billion.
Reported net sales fell 7% from a year earlier, weighed down by a 4-point drag from divestitures and acquisitions, while organic sales declined 3%.
Operating profit more than doubled, rising 108% to $1.7 billion on the back of a $1.05 billion gain from the U.S. yogurt divestiture. On an adjusted basis, operating profit slipped 18% in constant currency to $711 million.
Gross margin slipped 90 basis points to 33.9% of net sales, while adjusted gross margin fell 120 basis points to 34.2%. Adjusted operating profit margin contracted 210 basis points to 15.7%. Net earnings …