General Mills, Inc. ( GIS ) shares are trading higher on Thursday.

Yesterday, the firm reported fiscal 2026 first-quarter results that came in slightly ahead of Wall Street expectations. Adjusted earnings per share came in at 86 cents per share, topping analyst estimates of 81 cents per share, while revenue of $4.52 billion edged past projections of $4.51 billion.

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General Mills ( GIS ) reaffirmed its fiscal 2026 outlook. The company forecasts adjusted operating profit and adjusted EPS to decline 10% to 15% in constant currency. 

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RBC Capital Markets analyst Nik Modi reiterated the Outperform rating on the stock, with a price target of $63.

Modi highlighted General Mills’ FY26 EPS guidance likely provides enough cushion for the company to deliver despite a sluggish environment and ongoing price investments.

Modi said General Mills ( GIS ) is adjusting price/value across roughly two-thirds of its portfolio to close price cliffs and gaps, with more than half completed by the first quarter and the rest slated for the second.

He added that he’s encouraged that management still recognizes the need for further pricing moves.

The analyst added that growth was led by India, North Asia, and Europe, and that China improved because the impact of closing underperforming Häagen-Dazs stores was small.

He also said segment margins benefited from those closures, while Häagen-Dazs at retail and Wanchi Ferry both delivered solid growth.

The management reiterated a target of roughly 5,000 coolers for the fresh pet food rollout by the end of the second quarter. The analyst added that about 1,000 coolers should be in place by the end of September.

Modi now models full-year organic sales down 0.4% (from -0.1%) after slightly trimming second-half growth assumptions.

The analyst keeps EPS growth at -14.2%, saying first-quarter upside likely gets offset over the rest of the year.

GIS Price Action: General Mills ( GIS ) shares are trading higher by 1.36% to $49.84 at publication on Thursday.

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