General Mills (GIS) Stock Forecast & Price Target

General Mills has demonstrated a positive trajectory in its volume performance, evidenced by a 3-point increase attributed to boosted retailer inventory in anticipation of upcoming market activations. The company's strategic investments in price gap management and innovation are expected to enhance the growth prospects of its leading brands, ultimately leading to improved profit growth by late fiscal year 2026. Additionally, General Mills has shown improved market share performance in categories that are modestly growing, reinforcing a constructive outlook for the company's financial health.

General Mills is projecting a challenging fiscal year 2026 with an outlook of organic sales growth between -1% and +1%, alongside a significant decline in both operating profit and EPS, estimated to drop by 15% to 10% in constant currency terms. This revised forecast indicates a heavier burden from reinvestment than previously anticipated, leading to a more pronounced EPS decline than the earlier estimate of 6%. Additionally, the company's shares experienced a notable underperformance, decreasing by 5.1% in response to the disappointing FY26 outlook compared to the S&P 500's stable performance.