General Mills Reports Decline in Q3 Financial Performance, Net Sales Down 8%

General Mills, Inc. reported a decline in financial performance for the third quarter and nine-month period ending February 22, 2026, as detailed in its latest 10-Q filing. The company recorded net sales of $4.44 billion for the third quarter, an 8% decrease from $4.84 billion in the same period last year. For the nine-month period, net sales fell to $13.82 billion, down 7% from $14.93 billion. Operating profit also saw a significant decline, dropping 41% to $524.6 million in the third quarter, while for the nine-month period, operating profit increased by 6% to $2.98 billion, largely due to a substantial gain from the divestiture of its U.S. yogurt business.

The decrease in sales and operating profit was attributed to several factors, including higher input costs, reduced volume growth, and increased restructuring expenses. The company noted that organic net sales decreased by 3% for both the third quarter and the nine-month period, reflecting challenges in the consumer backdrop and the impact of recent divestitures. The operating profit margin for the third quarter fell to 11.8%, a decrease of 660 basis points compared to the previous year, while the nine-month operating profit margin improved to 21.6%, up 280 basis points.

Strategically, General Mills has undergone significant changes, including the divestiture of its U.S. yogurt business to Groupe Lactalis, which generated a pre-tax gain of approximately $1.05 billion. The company also acquired NX Pet Holding, enhancing its North America Pet segment. These strategic moves are part of a broader effort to streamline operations and focus on growth areas, although the impact of these changes has been mixed, with the company expecting a reduction in adjusted operating profit growth due to these divestitures.

Operationally, General Mills reported a decrease in customer engagement metrics, with a notable decline in customer counts and product adoption rates across several segments. The North America Retail segment, which includes a variety of grocery and mass merchandising channels, experienced a 14% drop in net sales for the third quarter. In contrast, the North America Pet segment saw a 3% increase in net sales, driven by favorable pricing despite a decrease in volume growth. The company’s employee headcount remained stable, reflecting its ongoing restructuring efforts.

Looking ahead, General Mills anticipates continued challenges in the market, with expectations for category growth to remain below long-term projections. The company plans to invest in consumer value and innovation to strengthen its market position. Despite the current difficulties, General Mills remains committed to its strategic initiatives and expects to leverage its recent acquisitions and divestitures to drive future growth.