Mondelez International (MDLZ) Q2 2026 earnings summary

Executive summary

• Q2 2026 net revenues rose 4.1% year-over-year to $9.4B, with organic net revenue up 2.2% and strong performance in emerging markets and North America; Europe showed early positive trends despite challenges.

• Diluted EPS surged 144.9% to $1.20, mainly due to favorable mark-to-market impacts and tax benefits, while adjusted EPS declined 2.7% at constant currency to $0.73, reflecting reinvestment and higher input costs.

• $1.5 billion was returned to shareholders year-to-date via dividends and share repurchases, with a 4% dividend increase announced.

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

• Management raised full-year top-line growth outlook to at least +2%, supported by robust emerging market growth and disciplined reinvestment.

Financial highlights

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

• Adjusted gross profit increased 3.0% in Q2; adjusted gross profit margin was 34.0%, up 0.2pp year-over-year.

• Operating income rose 66.0% to $1,946 million, with margin up to 20.8% due to derivative gains; adjusted operating income declined 6.1% due to reinvestment and higher input costs.

• 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 approximately $0.7 billion.

Outlook and guidance

• Full-year 2026 organic net revenue growth outlook raised to at least +2%.

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

• Up to $2B in share repurchases planned for FY26; quarterly dividend increased by 4%.

• Outlook reflects ongoing volatility from inflation, commodity costs, and geopolitical uncertainty.

• ERP system implementation underway, with $1.2B in approved funding and completion targeted by year-end 2028.