General Mills, Inc. reported results for its second quarter ended November 23, 2025. Results for the quarter and six-month period included the previously expected impacts of investments to improve brand remarkability, the North American yogurt divestitures, and an unfavorable trade expense timing comparison from fiscal 2025.
“Our team continued to execute exceptionally well in a volatile operating environment, delivering results ahead of our expectations in the second quarter,” said General Mills Chairman and Chief Executive Officer Jeff Harmening. “Our investments in remarkability are working, helping restore organic volume growth in North America Retail this quarter and driving strong competitiveness across each of our segments. With improved momentum in the first half and confidence in our plans to drive further improvement in the rest of the year, we are reaffirming our full-year fiscal 2026 outlook.”
In fiscal 2026, General Mills is investing in its brands to restore volume-driven organic net sales growth, with initiatives that touch all elements of the Company’s Remarkable Experience Framework: product, packaging, brand communication, omnichannel execution, and consumer value. This includes strong innovation plans that are expected to generate a 25 percent increase in sales from new products in fiscal 2026. The investments in remarkability are initially driving improved pound growth and market share results. The Company expects to return to dollar growth after the initial price investment phase, as improved remarkability for consumers drives pound growth with favorable price/mix. The combination of these growth investments, divested earnings from the North American Yogurt divestitures, and normalization of corporate incentive expense is expected to be a headwind to operating profit and EPS in fiscal 2026, but position the Company for stronger, more sustainable, and more profitable growth over the long term.
Second Quarter Results Summary
- Net sales were down 7 percent to $4.9 billion, including a 6-point headwind from the net impact of divestitures and acquisitions. Organic net sales were down 1 percent, driven by unfavorable organic net price realization and mix.
- Gross margin was down 210 basis points to 34.8 percent of net sales, driven by higher input costs and unfavorable mark-to-market effects, partially offset by the favorable impact of net price realization and mix to gross margin, largely due to a product mix benefit from the North American Yogurt divestitures. Adjusted gross margin was down 150 basis points to 34.8 percent of net sales, driven by higher input costs, partially offset by the favorable impact of net price realization and mix to gross margin, including the product mix benefit from the yogurt divestitures.
- Operating profit of $728 million was down 32 percent, driven primarily by lower gross profit dollars and higher restructuring, transformation, impairment, and other exit costs. Operating profit margin of 15.0 percent was down 560 basis points. Adjusted operating profit of $848 million was down 20 percent in constant currency, driven by lower adjusted gross profit dollars. Adjusted operating profit margin was down 290 basis points to 17.4 percent.
- Net earnings attributable to General Mills of $413 million were down 48 percent and diluted EPS was down 45 percent to $0.78, driven primarily by lower operating profit, lower after-tax earnings from joint ventures, and a higher effective tax rate, partially offset by lower net shares outstanding. Adjusted diluted EPS of $1.10 was down 21 percent in constant currency, driven primarily by lower adjusted operating profit and a higher adjusted effective tax rate, partially offset by lower net shares outstanding.
Six Month Results Summary
- Net sales of $9.4 billion were down 7 percent, including a 5-point headwind from the net impact of divestitures and acquisitions. Organic net sales were down 2 percent.
- Gross margin was down 150 basis points to 34.4 percent of net sales, driven by higher input costs, partially offset by the favorable impact of net price realization and mix to gross margin, including the product mix benefit from the yogurt divestitures. Adjusted gross margin was down 140 basis points to 34.5 percent of net sales.
- Operating profit of $2.45 billion was up 29 percent, driven primarily by a $1.05 billion gain on divestitures, partially offset by lower gross profit dollars and higher restructuring, transformation, impairment, and other exit costs. Operating profit margin of 26.2 percent was up 730 basis points. Adjusted operating profit of $1.6 billion was down 19 percent in constant currency, driven by lower adjusted gross profit dollars. Adjusted operating profit margin was down 250 basis points to 16.6 percent.
- Net earnings attributable to General Mills of $1.6 billion were up 18 percent and diluted EPS was up 22 percent to $3.00, driven primarily by higher operating profit and lower net shares outstanding, partially offset by lower after-tax earnings from joint ventures and a higher effective tax rate. Adjusted diluted EPS of $1.96 was down 21 percent in constant currency, driven primarily by lower adjusted operating profit and a higher adjusted effective tax rate, partially offset by lower net shares outstanding.