Two major U.S. corporations delivered contrasting fourth-quarter results Tuesday, with General Mills meeting lowered expectations despite a sales decline while Paychex posted double-digit revenue growth driven by a major acquisition.
The divergent performances underscore how companies are navigating different market pressures, from consumer spending shifts to strategic expansion through mergers and acquisitions.
General Mills reported fourth-quarter net sales of $4.6 billion, down 3% from the prior year, but the results aligned with the company's updated guidance12. The consumer goods giant's operating profit fell 35% to $504 million, while diluted earnings per share dropped 46% to $0.5334.
"The investments we made in the second half of fiscal 2025 to bring consumers more value worked as we expected, driving improved volume and pound share trends in the fourth quarter," said Chairman and CEO Jeff Harmening2.
The company's performance reflected strategic investments in consumer value that helped stabilize volumes despite ongoing pricing pressures. For the full fiscal year, net sales declined 2% to $19.5 billion, with operating profit falling 4% to $3.3 billion56.
General Mills faces headwinds from consumers trading down to private-label alternatives and retailer inventory adjustments, particularly in its cereal and pet food categories7. The company's board declared a quarterly dividend increase to $0.61 per share, up 2%5.
Paychex delivered robust results with fourth-quarter revenue jumping 10% to $1.43 billion, driven primarily by its recent acquisition of Paycor HCM12. Adjusted operating income grew 11% to $577 million, while adjusted diluted earnings per share rose 6% to $1.191.
The human capital management company completed its $4.2 billion acquisition of Paycor during the quarter, funded through a bond offering1. Excluding the acquisition impact, Management Solutions revenue would have increased approximately 3%1.
"We've integrated sales teams, optimized sales coverage, and provided training on the new offerings," the company noted, raising cost synergy expectations to approximately $90 million for fiscal 20261.
For the full fiscal year, Paychex reported total revenue of $5.57 billion, up 6%, with adjusted diluted earnings per share growing 6% to $4.9823.
General Mills aims to restore volume-driven organic sales growth in fiscal 2026 through increased investment in consumer value and product innovation, including Blue Buffalo's planned launch into fresh pet food1. Paychex projects fiscal 2026 revenue growth of 16.5% to 18.5%, with an adjusted operating margin target of approximately 43%2.
