Mondelez International (MDLZ) Q1 2026 earnings summary

Executive summary

• Net revenues rose 8.2% year-over-year to $10.1 billion in Q1 2026, with organic net revenue up 3.0% and strong growth in Emerging Markets, while Developed Markets stabilized as retailer negotiations concluded in line with expectations.

• Adjusted EPS was $0.67, down 14.9% year-over-year at constant FX, mainly due to elevated cocoa costs and cost phasing.

• Operating income increased 18.8% to $808 million, but adjusted operating income declined 19.0% at constant currency due to higher input costs and restructuring charges.

• Focus remains on brand investment, innovation, and expanding distribution, with successful launches in protein bars, gluten-free, and premium chocolate segments.

• Guidance for the year reaffirmed, with any EPS upside likely to be reinvested to sustain momentum.

Financial highlights

• Organic net revenue grew 3.0% year-over-year to $9.6 billion, driven by higher net pricing, partially offset by unfavorable volume/mix.

• Adjusted operating income dropped 19.0% at constant currency, with margin down to 11.7%; adjusted gross profit margin declined 270 basis points to 30.7%.

• Free cash flow was $0.2 billion, and $0.6 billion was returned to shareholders in Q1.

• Net earnings attributable to shareholders were $560 million, up from $402 million a year ago.

• Cash provided by operating activities was $467 million, down from $1,092 million in the prior year.

Outlook and guidance

• FY26 outlook reaffirms organic net revenue growth of flat to 2% and adjusted EPS growth of flat to 5% on a constant currency basis.

• Free cash flow for 2026 expected to be approximately $3 billion; share repurchases planned at ~$2 billion.

• Currency translation estimated to add 2% to net revenue growth and $0.06 to adjusted EPS in 2026.

• Guidance provided amid heightened macroeconomic, geopolitical, and commodity price volatility.

• EPS guidance reaffirmed; any upside will be reinvested in the business to drive future growth.