Core Insights - General Mills, Inc. (GIS) reported first-quarter fiscal 2026 results with both earnings and net sales surpassing the Zacks Consensus Estimate, although both metrics declined year over year [1][11]. Financial Performance - Adjusted earnings were 86 cents per share, exceeding the Zacks Consensus Estimate of 81 cents, but reflecting a 20% decline year over year on a constant-currency basis due to reduced adjusted operating profit and an increased adjusted effective tax rate [2][11]. - Net sales decreased by 7% to $4,517.5 million, with a four-point headwind from divestitures and acquisitions, yet still surpassing the Zacks Consensus Estimate of $4,499 million. Organic net sales also fell by 3% due to negative price realization and unfavorable trade expenses timing in North America Retail [3][11]. Margin Analysis - The adjusted gross margin declined by 120 basis points to 34.2% of net sales, primarily due to input cost inflation, partially offset by favorable net price realization and product mix benefits from yogurt divestitures [4][11]. - Adjusted operating profit dropped 18% in constant currency, with the adjusted operating profit margin decreasing by 210 basis points to 15.7% [5][11]. Segment Performance - North America Retail segment revenues were $2,625.5 million, down 13% year over year, impacted by reduced pound volumes and yogurt divestitures. Organic net sales dipped 5% [6]. - International segment revenues increased by 6% to $760.2 million, with organic net sales up 4%, driven by growth in India, North Asia, and Europe [7]. - North America Pet segment revenues rose 6% to $610 million, aided by the acquisition of North American Whitebridge Pet Brands, although organic net sales dipped 5% [8]. - North America Foodservice revenues decreased by 4% to $516.7 million, with organic net sales up 1% [9]. Financial Health - General Mills ended the quarter with cash and cash equivalents of $952.9 million, long-term debt of $12,218.4 million, and total stockholders' equity of $9,506.6 million. The company generated $397 million in cash from operating activities [12]. Future Outlook - The company aims to revive volume-driven organic sales growth in fiscal 2026, anticipating category growth below long-term expectations and reduced benefits from price/mix [13]. - Increased investments in value, innovation, and brand building are planned, including the launch of Blue Buffalo in the U.S. fresh pet food segment [14]. - The fiscal 2026 outlook includes projected organic net sales ranging from a 1% decline to a 1% increase, with adjusted operating profit and adjusted EPS expected to decline by 10-15% in constant currency [15].