Mondelez International (MDLZ) Q2 2026 earnings summary

Executive summary

• Q2 2026 net revenues grew 4.1% to $9.4B, with organic net revenue up 2.2% and strong performance in emerging markets and North America; Europe showed early positive trends but some softness.

• Diluted EPS surged 144.9% to $1.20, mainly due to favorable mark-to-market derivative impacts and tax benefits, while adjusted EPS was $0.73, down 2.7% at constant FX.

• $1.5B returned to shareholders year-to-date via dividends and share repurchases; quarterly dividend increased by 4%.

• Innovation, distribution expansion, and disciplined reinvestment are key growth drivers, especially in emerging markets and under-indexed North American channels.

• Consumer confidence remains stable in emerging markets, with India, Mexico, and Brazil performing well; China is softer but expected to improve.

Financial highlights

• Q2 2026 net revenues: $9,355 million, up 4.1% year-over-year; organic net revenue growth of 2.2%.

• Gross profit margin rose to 42.6% (up 9.9pp); adjusted gross margin was 34.0% (up 0.2pp); gross profit dollars up 3% year-over-year.

• Operating income increased 66.0% to $1,946 million; adjusted operating income declined 4.8% in Q2.

• Adjusted EPS for Q2 was $0.73, down 2.7% at constant FX; year-to-date adjusted EPS down 8.8%.

• Free cash flow for the first half was $0.7B; cash from operations was $1.3B.

Outlook and guidance

• Full-year 2026 organic net revenue growth outlook raised to at least +2%, with balanced growth expected across Q3 and Q4.

• Adjusted EPS growth projected to be flat to +5% at constant FX; free cash flow guidance is ~$3B.

• EPS outlook maintained, with any upside reinvested into areas showing momentum.

• 2027 earnings expected to be strong and insulated from commodity volatility, driven by positive volume mix, productivity, and innovation.

• Outlook reflects heightened volatility from geopolitical, trade, and regulatory uncertainties.