General Mills (GIS) Stock Forecast & Price Target

General Mills has demonstrated a positive volume trend, marked by a 3-point benefit from increased retailer inventory in anticipation of first-quarter in-market activations. The company's commitment to investing in price gap management and innovation is expected to bolster its leading brands, fostering stronger and more sustainable growth. Furthermore, as these investments commence to yield results, profit growth is projected to improve in late fiscal 2026, reflecting enhanced market share performance across its modestly growing categories.

General Mills is projecting a challenging fiscal year 2026, with expected organic sales growth ranging from -1% to +1%, and significant declines in operating profit and earnings per share (EPS) estimated between -15% to -10% on a constant currency basis. The company's outlook indicates a heavier burden from reinvestment than previously anticipated, leading to a revision in the expected EPS decline from 6% to a more pronounced range of -15% to -10%. Additionally, the anticipated 22.5% decline in operating profit further underscores the negative sentiment surrounding its financial performance, contributing to a notable share price drop of 5.1%.