General Mills Prepares for Q2 Earnings: Things to Watch for GIS Stock

General Mills, Inc. GIS is likely to register a decrease in the top and bottom lines when it reports second-quarter fiscal 2026 earnings on Dec. 17. The Zacks Consensus Estimate for revenues is pegged at $4.78 billion, implying an 8.9% drop from the prior-year quarter’s reported figure. 

The consensus mark for earnings has remained unchanged in the past 30 days at $1.02 per share, which indicates a slump of 27.1% from the figure reported in the year-ago quarter. GIS delivered a trailing four-quarter earnings surprise of 7.6%, on average.

Things to Know Ahead of GIS’ Upcoming Results

As General Mills heads into its fiscal second-quarter earnings, the key themes remain largely unchanged. The company is prioritizing long-term volume recovery over near-term financial performance, which means that the upcoming results are likely to stay under pressure even as underlying brand health gradually improves.

In North America Retail, price and value investments continue to weigh on reported sales. General Mills is still working through price resets and pack-size adjustments across much of its portfolio, which should keep the price/mix unfavorable in the quarter. However, management has pointed to improving volume trends, better pound share and rising household penetration, suggesting these actions are starting to connect with consumers. Increased innovation, advertising and seasonal in-store programs are expected to support momentum through the quarter. Our model suggests a 4.5% decline in the price/mix and a 0.2% increase in volumes for the North America Retail segment in the second quarter.

The North America Pet segment remains a near-term margin pressure point. The fresh pet food launch under the Blue Buffalo brand begins to have a more visible impact in the quarter, bringing higher marketing and launch costs before meaningful revenue contribution. Performance in the core pet business, particularly efforts to stabilize dog food while sustaining strength in cat food and treats, will be an important indicator of underlying demand. International results are likely to moderate sequentially as some first-quarter timing benefits slow down, even as demand trends in key markets remain relatively stable. We expect the International unit to see a 0.5% drop in organic sales in the quarter under review.

At the same time, input cost inflation and tariff-related pressures are expected to persist. Our model suggests a 250-basis-point contraction in the adjusted gross margin for General Mills in the quarter to be reported. Overall, the second quarter is likely to remain under pressure, though underlying trends are slowly moving in the right direction.

Earnings Whispers for GIS

Our proven model doesn’t conclusively predict an earnings beat for General Mills this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here. 

General Mills has a Zacks Rank #3 and an Earnings ESP of -0.14% at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks With the Favorable Combination

Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.

Conagra Brands CAG currently has an Earnings ESP of +0.11% and a Zacks Rank of 3. The consensus mark for quarterly revenues is pegged at $3 billion, which indicates a decline of 6.2% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Conagra’s quarterly earnings per share (EPS) is pegged at 44 cents, which implies a 37.1% decrease year over year. CAG delivered a trailing four-quarter earnings surprise of 3.5%, on average.

The Hershey Company HSY currently has an Earnings ESP of +0.91% and a Zacks Rank of 3. The consensus estimate for Hershey’s quarterly revenues stands at $2.97 billion, which calls for 3% growth from the figure reported in the prior-year quarter. 

The Zacks Consensus Estimate for Hershey’s upcoming quarter’s EPS is pegged at $1.39, which implies a 48.3% decrease year over year. HSY delivered a trailing four-quarter earnings surprise of nearly 15%, on average.

Philip Morris PM currently has an Earnings ESP of +0.20% and a Zacks Rank of 3. The consensus estimate for quarterly revenues is pegged at $10.41 billion, which calls for 7.2% growth from the figure reported in the prior-year quarter. 

The Zacks Consensus Estimate for Philip Morris’ upcoming quarter’s bottom line is pegged at $1.67 per share, which suggests 7.7% growth from the figure recorded in the year-ago period. PM delivered a trailing four-quarter earnings surprise of 4.4%, on average.

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This article originally published on Zacks Investment Research (zacks.com).

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