General Mills Inc (GIS US) Hold: Solid 4Q beat – FY27 leans on innovation and cost discipline rather than a better consumer

Research evidence excerpt

General Mills Inc (GIS US) Hold: Solid 4Q beat – FY27 leans on innovation and cost discipline rather than a better consumer

2 July 2026

General Mills Inc (GIS US) EquitiesFood Products

Hold: Solid 4Q beat – FY27 leans on innovation and

cost discipline rather than a better consumer United States

◆ 4Q FY26 adj. operating income and adj. EPS beat consensus

MAINTAIN HOLD

estimates by c13% and c20%, respectively

TARGET PRICE (USD) PREVIOUS TARGET (USD)◆ Volume recovery remains pending; FY27 relies on execution

as it assumes a still challenged consumer backdrop 41.00 44.00

◆ Maintain Hold rating; lower target price to USD41 (from SHARE PRICE (USD) UPSIDE/DOWNSIDE

USD44), which implies c9% upside and 13x FY27e PE 37.57 +9.1%

(as of 02 Jul 2026)

HSBC View: Positive. General Mills released strong and better-than-expected 4Q FY26 MARKET DATA

Market cap (USDm) 20,051 Free float 100%

results. Adjusted operating income of USD705m (+13.3% y-o-y) came in c13% above Market cap (USDm) 20,051 BBG GIS US

the Visible Alpha consensus, while adjusted EPS of USD0.95 beat by c20%. Net sales 3m ADTV (USDm) 342 RIC GIS.N

grew 1.2%, modestly ahead of consensus, while adjusted operating margin expanded

FINANCIALS AND RATIOS (USD)

by 164bp to 15.3% margin, aided in part by the calendar benefit of the 53rd week Year to 05/2026a 05/2027e 05/2028e 05/2029e

(already reflected in Street estimates, but inflating reported y-o-y growth). The beat HSBC EPS -0.16 3.15 3.32 3.43

HSBC EPS (prev) 4.37 3.32 3.40 na

carried full-year adjusted EPS to USD3.55 (-16% y-o-y in constant currency), landing at Change (%) nm -5.0 -2.2 na

the favorable end of the 16-20% decline range management guided to in March. Consensus EPS 3.40 3.12 3.24 3.41

PE (x) nm 11.9 11.3 10.9

Dividend yield (%) 6.5 6.5 6.6 6.7