A Look At General Mills (GIS) Valuation After Cutting Its 2026 Outlook

General Mills (GIS) cut its full-year 2026 outlook, telling investors to expect a larger drop in organic net sales, operating profit, and earnings per share as weak consumer sentiment pressures volumes.

See our latest analysis for General Mills.

The guidance cut comes after a choppy period for the stock, with a 7 day share price return of a 6.12% decline and a 1 year total shareholder return of a 22.32% loss. This suggests sentiment has weakened, even as the latest 1 day and 30 day share price returns have turned positive.

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With General Mills now trading below some analyst targets and its own outlook pointing to earnings pressure, you have to ask: Is the recent weakness already reflected in the price, or is the market bracing for tougher years ahead?

Most Popular Narrative: 37.9% Undervalued

According to the most followed narrative on General Mills, a fair value of $73.07 sits well above the last close at $45.38, which sets up a clear valuation gap for investors to weigh.

General Mills offers stability through its diversified product range and dividend yield. However, challenges in retail volume, GLP-1 impact, and valuation should be carefully considered by investors.

Read the complete narrative.

Want to understand why this narrative stretches so far beyond the current price? The fair value hinges on specific assumptions about future revenue, margins, and the earnings multiple. The full write up lays out how those moving parts interact and what has to happen in the business for that valuation to make sense.

Result: Fair Value of $73.07 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, this hinges on North America retail volumes stabilising and GLP 1 headwinds staying manageable, and either issue could quickly undermine the bullish case.

Find out about the key risks to this General Mills narrative.

Next Steps

Feeling torn between the risks and the potential upside discussed so far? Take a moment to look through the numbers yourself and act while this story is still developing. You can start with 3 key rewards and 3 important warning signs.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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