Mondelez International, Inc. (MDLZ) Earnings

metirFinance

Sep 2026upcoming

Next quarter

Reports Oct 27, 2026.

Consensus is $0.72 EPS for Sep 2026 across 7 estimates, ranging $0.68 to $0.80.

MDLZ Jun 2026

Reported Jul 28, 2026

: 8.96%
: +4.02%

: $0.67
: $0.73
: —
: —

Highlights

Earnings beat Adjusted EPS was $0.73 versus the $0.67 consensus, an 8.96% surprise; reported diluted EPS was $1.20, up 144.9% year over year from $0.49.
Top-line growth Net revenue rose 4.1% to $9.36 billion, while Organic Net Revenue increased 2.2% to $9.17 billion, driven by 1.5 percentage points of pricing and 0.7 points of volume/mix.
Underlying profitability Adjusted operating income fell 6.1% at constant currency to $1.21 billion, and adjusted operating margin declined 120 basis points to 13.1% as higher input and operating costs outpaced pricing.
Emerging markets strength Emerging-market Organic Net Revenue grew 4.4%, led by Latin America at 8.4% and AMEA at 7.1%; developed-market Organic Net Revenue grew only 0.7%.
Europe remained weak Europe revenue declined 1.0% organically, with volume/mix down 3.5 percentage points; segment operating income fell 25.7% to $382 million.
Reported earnings distortion A $827 million favorable year-over-year change in mark-to-market derivative impacts was the main driver of the reported operating-income and EPS surge; adjusted EPS was down 2.7% at constant currency.
Cash and capital returns First-half operating cash flow was $1.32 billion and free cash flow was $668 million, while shareholder returns totaled $1.5 billion; the quarterly dividend was increased 4%.
Guidance Mondelez raised its 2026 Organic Net Revenue outlook to at least 2%, maintained constant-currency adjusted EPS growth guidance of flat to 5%, and expects approximately $3 billion of free cash flow.

Analysis

Mondelez’s second quarter was a modest operating beat masked by unusually favorable comparison items. Adjusted EPS of $0.73 exceeded the $0.67 consensus, but declined 2.7% at constant currency as higher pricing and volume/mix were more than offset by input costs, SG&A and advertising spending. Revenue rose 4.1% to $9.36 billion from $8.98 billion a year ago, including 2.2% organic growth. Sequentially, revenue declined from $10.08 billion in Q1, reflecting normal quarter-to-quarter seasonality, while reported operating income rose from $808 million to $1.95 billion and reported diluted EPS increased from $0.44 to $1.20.

The defining feature of the print was the split between reported and underlying results. A $827 million favorable year-over-year change in commodity and foreign-currency derivative mark-to-market impacts lifted reported operating income, while lower pension charges and tax benefits also supported GAAP EPS. The business itself was strongest in emerging markets, especially Latin America and AMEA, while Europe continued to absorb pricing elasticity. Management raised the full-year organic revenue floor to at least 2% but left adjusted EPS growth at flat to 5%, underscoring that commodity inflation, spending investment and margin recovery remain the central issues.

Underlying operating performance

The core business grew, but did not yet translate pricing into earnings growth. Organic revenue increased 2.2% to $9.17 billion, with pricing contributing 1.5 percentage points and volume/mix 0.7 points. Adjusted operating income declined 6.1% at constant currency to $1.21 billion, reducing adjusted margin to 13.1% from 14.3%.

Pricing and costs Higher net pricing contributed $137 million to constant-currency adjusted operating income, but higher input costs reduced it by $56 million. Productivity-driven manufacturing savings and favorable volume/mix provided additional support.
Spending pressure Higher SG&A reduced adjusted operating income by $182 million, reflecting increased overhead and advertising and consumer promotion spending. ERP implementation costs were $59 million in the quarter, versus $37 million a year earlier.
Input-cost lag Cocoa prices were below prior-year peaks, but existing hedge positions limited the near-term benefit. Packaging, nuts, energy, edible oils, grains and other ingredients remained higher-cost categories.

Regional growth split

Emerging markets carried the quarter, while Europe remained the main drag. Emerging-market Organic Net Revenue grew 4.4% against 0.7% for developed markets, and the regional profit trends were similarly divergent.

Latin America Organic revenue increased 8.4%, with pricing up 7.9 percentage points and volume/mix up 0.5 points. Segment operating income rose 24.8% to $166 million, supported by pricing, productivity and favorable currency.
AMEA Organic revenue grew 7.1%, led by 5.2 points of pricing and 1.9 points of volume/mix. Segment operating income fell 6.3% to $254 million because raw-material and operating-cost increases outweighed top-line growth.
Europe Organic revenue declined 1.0%, as volume/mix fell 3.5 points and pricing fell 2.1 points. Segment operating income dropped 25.7% to $382 million, with chocolate volume still affected by the elasticity of prior pricing actions.
North America Organic revenue grew 3.0%, driven by 3.4 points of volume/mix and 1.2 points of pricing. Segment operating income declined 5.1% to $431 million as higher SG&A and promotion spending offset growth.

Reported earnings volatility

The 144.9% increase in diluted EPS to $1.20 should not be read as a measure of underlying earnings momentum. Reported operating income rose 66.0% to $1.95 billion and net earnings attributable to Mondelez increased 141.5% to $1.55 billion, but the comparison benefited heavily from non-operating and hedging-related items.

Derivative comparison Mark-to-market derivative impacts shifted from a $93 million loss in the year-ago quarter to an $827 million gain in Q2 2026, a $920 million year-over-year swing in operating income.
Other items The comparison also benefited from lower pension participation charges and initial impacts from enacted tax law changes. The effective tax rate declined to 19.2% from 26.9%, aided by jurisdictional mix, a legal-entity reorganization and a U.S. amended tax return.
Cash earnings view Adjusted EPS was flat at $0.73 on a reported-currency basis and $0.71 at constant currency, with operating declines and higher interest and other expense offset by lower taxes and favorable currency.

Cash flow and shareholder returns

Cash generation remained positive but was below the prior-year first-half level, while capital returns stayed substantial. Management returned $1.5 billion to shareholders in the first six months and announced a 4% increase to the quarterly dividend.

Free cash flow First-half operating cash flow was $1.32 billion, down from $1.40 billion, while capital expenditures rose to $654 million from $582 million. Free cash flow was $668 million, down from $818 million.
Capital allocation First-half dividends paid were $1.29 billion and share repurchases were $212 million. Approximately $6.5 billion remained under the company’s $9.0 billion repurchase authorization at June 30.
Liquidity Cash and cash equivalents were $1.72 billion at quarter-end, compared with $2.13 billion at December 31, 2025; total debt was $21.45 billion.

2026 outlook

Management increased the revenue-growth floor while preserving its prior earnings and cash-flow framework. The outlook continues to assume substantial volatility from commodities, tariffs, geopolitics and foreign exchange.

Revenue 2026 Organic Net Revenue growth is now expected to be at least 2%, reflecting first-half performance.
Earnings Constant-currency adjusted EPS growth remains guided to a range of flat to 5%; expected currency translation would add approximately 2.0 percentage points to reported revenue growth and $0.053 to adjusted EPS.
Cash flow Full-year free cash flow is expected to be approximately $3 billion. The outlook does not reflect potential changes to tariffs under the USMCA framework.

Mondelez International, Inc.

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