4Q25 Revenue: $4.56B, -3.2% YoY, miss estimates by $40M
4Q25 Non-GAAP EPS: $0.74, beat estimates by $0.03
FY26 Guidance: Expect adjusted EPS down 10% to 15% from FY25’s $4.21, with the entire range below the $3.90 expectation. Organic net sales are seen declining 1% to growing 1%, while analysts expect 0.1% growth.
Comment: General Mills issued weaker-than-expected annual profit guidance, citing soft U.S. demand for refrigerated baked goods and snacks amid tariff-driven economic uncertainty. Sales in its North America retail segment fell 10%, offsetting a 12% increase in its pet food division. Its CEO pointed to ongoing volatility from tariffs, global conflicts, and shifting regulations, which continue to drive consumers toward value purchases. Fourth-quarter revenue came in at US$4.56bn, just below expectations, while adjusted earnings per share of US$0.74 slightly exceeded forecasts. The company expects fiscal 2026 adjusted EPS to decline 10% to 15% YoY, with organic net sales projected to range from a 1% decline to 1% growth. Increased marketing and product investment, particularly in its Blue Buffalo pet food line, are expected to weigh on margins in the near term. Despite these headwinds, General Mills is laying the groundwork for long-term resilience through innovation in high-growth categories and a sharper focus on affordability. However, in the near term, margin pressure and a shift in consumer preference toward private-label brands are likely to continue weighing on performance. 1Q26recommended trading range: $40 to $55. Neutral Outlook.
3Q25 Revenue: $9.3B, +36.6% YoY, beat estimates by $450M
3Q25 Non-GAAP EPS: $1.91, beat estimates by $0.30
4Q25 Guidance: Expect revenue of $10.7B, plus or minus $300M, compared with analysts’ average estimate of $9.88B. The company expects an adjusted gross margin of about 42%, plus or minus 1%, above average analysts’ estimates of an adjusted gross margin of 39.15%.
Dividend distribution: Declared $0.115/share quarterly dividend, in line with previous, payable July 22; for shareholders of record July 7.
Comment: Micron Technology delivered strong third-quarter results, with revenue of US$9.3bn and adjusted earnings of US$1.91 per share, exceeding analyst expectations. The company forecast even stronger fourth-quarter revenue of US$10.7bn, citing surging demand for its high-bandwidth memory (HBM) chips used in AI hardware. Sales of HBM chips rose 50% QoQ, driven by investments from cloud giants like Google in expanding AI infrastructure. As one of only three global providers of HBM, Micron is capitalizing on this momentum by launching a dedicated cloud memory business unit to focus on hyperscaler needs and AI-driven data processing. With AI adoption accelerating across cloud and data center environments, Micron is well-positioned for sustained growth. Its continued investment in HBM technology and focus on high-performance memory solutions for hyperscalers could drive long-term revenue expansion. As demand for AI infrastructure scales, Micron is likely to see increased market share and profitability, particularly as it leverages its strategic position in the high-bandwidth memory market. 4Q25recommended trading range: $125 to $140. Positive Outlook.
