Executive Summary
General Mills’ QQ1 2026 results show a clear top‑line headwind despite a resilient earnings outturn. Revenue totaled $4.5175 billion, down 6.82% year over year and 6.71% quarter over quarter, reflecting ongoing demand softness and mix pressures in a competitive consumer staples landscape. Notwithstanding the revenue decline, the company delivered robust profitability with operating income of $1.7258 billion and an EBITDA of $1.7258 billion, yielding an operating margin of approximately 38.2% and an EBITDAR of 38.2% of revenue. Net income reached $1.2042 billion with a net margin around 26.66%, driving earnings per share (EPS) of $2.22, up more than 100% year over year and roughly 95% higher quarter over quarter.
Free cash flow remained solid at $397 million, with net cash provided by operating activities also at $397 million. However, cash flow from investing activities was negative by about $1.6948 billion and financing activities were negative by about $1.5072 billion, resulting in a net cash swing that left cash and cash equivalents at $952.9 million at period end. The balance sheet shows a large asset base dominated by goodwill and intangibles (Goodwill $15.66B; Intangibles $7.09B) and a total debt load of $14.41B, with net debt around $13.45B. The company supplemented capital returns with a $0.5 billion share repurchase and $0.331 billion in dividends in the quarter.
Looking ahead, the near-term operating momentum appears to hinge on stabilizing net revenue, sustaining gross and operating margins amid input and distribution dynamics, and prudently managing leverage while continuing to invest in brand and portfolio initiatives. The QQ1 results underscore a scenario where margin resilience can offset moderate revenue softness, but debt levels remain a material consideration for investors.”,
Key Performance Indicators
QoQ: 93.61% | YoY:107.55%
QoQ: 92.49% | YoY:107.66%
QoQ: 94.74% | YoY:115.53%
Key Insights
Revenue: $4,517,500,000 (YoY -6.82%, QoQ -6.71%).
Operating Income: $1,725,800,000 (YoY +107.55%, QoQ +93.61%).
Net Income: $1,204,200,000 (YoY +107.66%, QoQ +92.49%).
EPS: $2.22 (YoY +115.53%, QoQ +94.74%).
EBITDA: $1,725,800,000 (EBITDARatio 0.3820; Operating Income Margin 0.3820).
Net Income Margin: 0.2666 (26.66%).
Cash Flow: Net cash provided by operating activities $397,000,000; Free cash flow $397,000,000.
Cash/Liquidity: Cash and cash equivalents $952.9 million.
Balance Sheet: Total asse...
Financial Highlights
Revenue: $4,517,500,000 (YoY -6.82%, QoQ -6.71%).
Operating Income: $1,725,800,000 (YoY +107.55%, QoQ +93.61%).
Net Income: $1,204,200,000 (YoY +107.66%, QoQ +92.49%).
EPS: $2.22 (YoY +115.53%, QoQ +94.74%).
EBITDA: $1,725,800,000 (EBITDARatio 0.3820; Operating Income Margin 0.3820).
Net Income Margin: 0.2666 (26.66%).
Cash Flow: Net cash provided by operating activities $397,000,000; Free cash flow $397,000,000.
Cash/Liquidity: Cash and cash equivalents $952.9 million.
Balance Sheet: Total assets $33.0156 billion; Total liabilities $23.4967 billion; Total stockholders’ equity $9.5066 billion.
Debt: Total debt $14.4070 billion; Net debt $13.4541 billion; Short-term debt $2.1886 billion; Long-term debt $12.2184 billion.
Capital Allocation: Common stock repurchased $500 million; Dividends paid $330.9 million; Other financing activities −$1.1763 billion; Net cash used by financing activities −$1.5072 billion.
Liquidity Ratios (calculated): Current ratio ≈ 0.66; Quick ratio ≈ 0.40; Cash conversion and working capital metrics are modestly challenged by elevated short-term liabilities.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
4.52B |
-6.82% |
-6.71% |
| Operating Income |
1.73B |
107.55% |
93.61% |
| Net Income |
1.20B |
107.66% |
92.49% |
| EPS |
2.22 |
115.53% |
94.74% |
Management Commentary
Unable to extract specific management call highlights from the provided data. The materials include an earnings transcript section placeholder but no verbatim quotes. If the transcript text is provided, a thematic synthesis (strategy, operations, market conditions) with supporting quotes can be added here.
Forward Guidance
No explicit forward-looking guidance was included in the supplied materials. Given the QQ1 2026 results, investors should monitor: (1) revenue stabilization or growth initiatives across key geographies and categories; (2) continued margin management through pricing, product mix, and cost discipline; (3) deleveraging progress and balance sheet optimization amid elevated debt levels; (4) working capital efficiency and capital allocation (dividends, buybacks) in the context of cash flow generation. The achievability of any implicit guidance will depend on demand resilience, commodity and logistics costs, and competitive dynamics in major markets.