11:52 AM EDT, 03/19/2026 (MT Newswires) -- General Mills ( GIS ) maintained its fiscal 2026 guidance despite weather-related headwinds in fiscal Q3, with investors now looking to fiscal 2027 for proof of sustained volume growth, RBC Capital Markets said Thursday.

The company saw its fiscal Q3 organic sales fall 3% versus a consensus estimate for a 2.4% drop. General Mills ( GIS ) posted a slight gain in North America Retail but weaker performance in North America Pet, Foodservice, and International offset that, the brokerage said.

RBC noted the company held or grew pound-share in eight of the top 10 North America Retail categories despite these challenges. Household penetration also rose in seven categories which suggests that brand health remains solid.

General Mills ( GIS ) does not expect the conflict in the Middle East to affect its upcoming fiscal Q4 results. Weather-related disruptions that weighed on the quarter are likely to even out in the second half of the fiscal year.

The company reaffirmed its fiscal 2026 guidance. It expects organic growth to decline between 2% and 1.5%, compared with a consensus forecast of 1.6%. Constant currency operating income is expected to decline 20% to 16%, versus a consensus drop of 16.7%. Constant currency adjusted EPS is projected to fall 20% to 16%, versus a consensus decline of 17.6%.

RBC lowered its fiscal 2026 estimate for organic growth to 1.7% decline from 1.5% and cut earnings per share to $3.43 from $3.45. The firm also made modest revisions to fiscal 2027 topline and margin forecasts due to weather effects and the recent Brazil divestiture.

The firm maintained an outperform rating on General Mills ( GIS ) and lowered the price target to $55 from $60.

Price: 37.50, Change: -0.10, Percent Change: -0.25