Mondelez International (MDLZ) Q1 2026 earnings summary

Executive summary

• Net revenues rose 8.2% year-over-year to $10.1 billion in Q1 2026, driven by higher net pricing, favorable currency, and strong performance in both developed and emerging markets, particularly in Europe, India, and Brazil.

• Organic net revenue grew 3.0%, with positive underlying volume/mix excluding downsizing impacts.

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

• Diluted EPS rose 41.9% to $0.44, primarily due to favorable mark-to-market impacts from derivatives, offset by higher restructuring and ERP implementation costs.

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

Financial highlights

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

• Adjusted operating income declined 19.0% at constant FX, with margin down to 11.7%; operating income rose 18.8% to $808 million, with margin up to 8.0%.

• Gross profit margin improved by 170 basis points to 27.8%, but adjusted gross profit margin declined 270 basis points to 30.7% due to higher input costs.

• Free cash flow was $0.2 billion YTD; cash provided by operating activities was $467 million, down from $1,092 million a year ago.

• Dividend payments totaled $644 million for the quarter.

Outlook and guidance

• 2026 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 ~$2B.

• Inflation expected at high single digits as a percentage of COGS; currency translation estimated to add 2% to net revenue growth and $0.06 to adjusted EPS.

• 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, particularly targeting strong EPS growth in 2027.