General Mills’ QQ1 2026 results demonstrate a balance between a modest top-line decline and meaningful profitability expansion. Revenue in Q1 2026 was $4.5175 billion, down 4.17% year over year and 6.71% quarter over quarter, reflecting continued demand normalization and base effects in a mature packaged foods market. Despite the revenue headwinds, operating income rose to $1.7258 billion, up 121.5% YoY and 93.6% QoQ, yielding an operating margin of approximately 38.2%. Net income reached $1.2042 billion with an EPS of $2.22, up 116% YoY and 94.7% QoQ, underscoring strong margin discipline and cost control. The EBITDA shown was $1.7258 billion with a net income margin around 26.7%, highlighting the leverage embedded in the cost structure.
From a cash-flow perspective, cash generated from operations was $397 million, supporting $330.9 million in dividends and a $500 million share repurchase during the quarter. Free cash flow was reported at $397 million. On the balance sheet, total assets stood at $33.0 billion, with goodwill of $15.66 billion and intangible assets of $7.09 billion, and total liabilities of $23.50 billion against total equity of $9.51 billion. Net debt sits at approximately $13.45 billion, with cash and equivalents of about $0.953 billion. The current ratio was around 0.66, indicating some liquidity pressure on a pure working-capital basis, while quick liquidity metrics remained below a traditional comfort band.
Overall, the quarter showcases General Mills’ ability to translate a challenging revenue environment into meaningful profitability through efficiency, price/mix, and disciplined capital allocation. The key near-term questions for investors include the durability of margins amid input-cost volatility, the pace of top-line stabilization or growth, and the company’s ability to deleverage given sizable debt levels.