General Mills (GIS) Stock Forecast & Price Target

General Mills has demonstrated a positive outlook due to a recent 3-point volume benefit attributed to increased retailer inventory in anticipation of first-quarter in-market activations. The company's commitment to investing in key areas such as price gap management and innovation is expected to bolster its leading brands, ultimately supporting stronger, sustainable growth and improved profit margins in the latter part of fiscal year 2026. Additionally, as market share performance has improved in segments where these investments and management actions have been implemented, the overall categories in which General Mills operates are showing modest growth.

General Mills has projected an initial fiscal year 2026 outlook indicating a concerning range of -1% to +1% organic sales growth and a significant operating profit and EPS decline of -15% to -10% on a constant currency basis. This outlook is more pessimistic than prior expectations, with a heavier burden from reinvestment leading to a revised EPS decline estimate, which has worsened from a previously anticipated 6%. Additionally, the shares experienced a noticeable underperformance, dropping 5.1% in response to the disappointing FY26 EPS outlook compared to the S&P 500, which remained unchanged.