General Mills (NYSE:GIS) reported a sharp decline in its third-quarter financial results for the period ended February 22, 2026, as the consumer foods giant navigates a complex portfolio restructuring and rising operational costs.
Net earnings attributable to the company fell 52% to $303 million, while diluted earnings per share dropped 50% to $0.56 compared to the prior year.
Net sales for the quarter decreased 8% to $4.4 billion.
The decline was heavily influenced by a 6-point headwind resulting from the net impact of acquisitions and divestitures—most notably the sale of its North American Yogurt business.
Organic net sales, which strip out those impacts, fell 3%, driven by lower organic pound volume and unfavorable price realization.
These internal metrics trailed global retail sales trends by approximately 1.5 percentage points.
Profitability was further squeezed by a 310-basis-point contraction in gross margin, which landed at 30.8%.
Management attributed the margin erosion primarily to higher input costs, which were only partially offset by price hikes and the favorable product mix resulting from the exit of the yogurt category.
Adjusted operating profit fell 32% in constant currency to $547 million, reflecting the broader struggle to maintain margins in a high-cost environment.
The company’s operating profit of $525 million represented a 41% decrease from the previous year, a gap widened by a one-time divestiture gain recorded in 2025.
Beyond operating hurdles, General Mills faced headwinds from lower after-tax earnings in its joint ventures and a higher effective tax rate.