Guidance Cut

General Mills’ shares dropped 7% on February 17 after the company announced a revised full‑year 2026 outlook. The new guidance projects an organic net‑sales decline of 1.5‑2% (down from the previous –1% to +1%) and adjusted diluted earnings per share falling 16‑20% (versus the prior –10% to –15%). The cut comes amid weaker volumes and an unfavorable price mix that pushed the company’s gross margin down 210 basis points to 34.8% and operating profit down 32% YoY in the most recent quarter. Analysts now rate the stock as a Zacks Rank #5 (Strong Sell) and have lowered earnings estimates for the current quarter from 83 ¢ to 79 ¢ per share.