10-Q · April 28, 2026
Mondelez reported Q1 2026 net revenues of $10,080 million, up $767 million (+8.2% YoY) driven by pricing and favorable currency; Organic Net Revenue rose 3.0% to $9,581 million. Reported diluted EPS was $0.44 (up 41.9%…
Earnings analysis · 10-Q
MDLZ earnings analysis
Filed July 28, 2026 · Our reading of the company's report
The latest report
Mondelēz delivered Q2 revenue of $9.355 billion, up 4.1% YoY, and GAAP EPS of $1.20, up from $0.49, but the reported earnings expansion was heavily influenced by a $827 million derivative mark-to-market gain. Core…
Read full summary
Mondelēz delivered Q2 revenue of $9.355 billion, up 4.1% YoY, and GAAP EPS of $1.20, up from $0.49, but the reported earnings expansion was heavily influenced by a $827 million derivative mark-to-market gain. Core profitability softened, with adjusted operating income down 4.8% and adjusted operating margin down 120 basis points to 13.1%, as input costs and SG&A more than offset pricing. Latin America and AMEA drove sales growth, while Europe posted declining revenue and a 25.7% segment-profit decline; liquidity remained solid with $1.322 billion of first-half operating cash flow.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.2
- Operating margin
- 20.8%
What stood out
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Revenue grew 4.1% YoY despite Q/Q decline
Q2 net revenue increased $371 million, or 4.1% YoY, to $9.355 billion; Organic Net Revenue rose 2.2% to $9.172 billion. Sequentially, revenue declined from $10.080 billion in Q1 2026.
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GAAP profit and EPS surged on derivative swing
GAAP operating income rose $774 million, or 66.0%, to $1.946 billion and operating margin expanded to 20.8% from 13.0%. GAAP diluted EPS increased $0.71 to $1.20 from $0.49, aided primarily by a $827 million mark-to-market derivative gain versus a $93 million loss a year earlier.
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Latin America and AMEA drove growth
Latin America led regional growth, with revenue up $180 million, or 15.1%, to $1.374 billion, while AMEA revenue rose $150 million, or 8.2%, to $1.971 billion. AMEA volume/mix contributed 5.2 percentage points to growth.
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Cash generation remained substantial
Operating cash flow was $1.322 billion for the first six months of 2026, down from $1.400 billion a year earlier. Management expects 2026 capital expenditures of up to $1.4 billion, primarily for manufacturing modernization, new-product capacity and productivity initiatives.
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Leverage ratio held steady despite higher debt
Total debt was $21.5 billion at June 30, 2026, versus $21.2 billion at December 31, 2025, while the debt-to-capitalization ratio held at 0.45. The company had $2.9 billion remaining under its $4.0 billion long-term financing authorization.
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Dividend increased and buyback capacity remains
Shareholder returns continued: dividends paid were $1.287 billion in the first half, and the July 28 quarterly dividend declaration increased 4% to $0.52 per share. The company also retained approximately $6.5 billion of repurchase authorization at June 30.
What to watch
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Underlying margin contracted
Underlying profitability weakened despite the GAAP earnings surge: adjusted operating income declined $61 million, or 4.8%, to $1.222 billion, and adjusted operating margin fell to 13.1% from 14.3%. Higher SG&A expense reduced constant-currency adjusted operating income by $182 million.
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Europe volumes and profit deteriorated
Europe was the principal operating drag: Q2 revenue declined $35 million, or 1.0%, to $3.377 billion and segment operating income fell $132 million, or 25.7%, to $382 million. Management attributed the pressure to chocolate volume declines and pricing elasticity.
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ERP transformation adds multi-year cost burden
ERP program expense was $59 million in Q2, up from $37 million a year ago; total Board-approved funding is $1.2 billion, with completion expected by year-end 2028. The filing says a majority of program spending is expected to be operating expense.
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Commodity hedges delay cocoa-cost relief
Management expects cocoa prices to remain elevated relative to historical levels in the near and medium term, while existing hedges delayed benefits from lower market cocoa prices. Higher input costs reduced Q2 constant-currency adjusted operating income by $56 million.
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Tariff exposure and refund uncertainty persist
Trade-policy uncertainty remains material: the company paid approximately $20 million of IEEPA tariffs and had received about $6 million of refunds by June 30, 2026, with further refund timing and amount uncertain. Management states additional tariff actions could significantly hurt revenue and cost of goods sold.
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No formal risk-factor updates; conflict exposure remains
Item 1A states there were no material changes to risk factors disclosed in the 2025 Form 10-K. Nonetheless, Russia represented 3.8% and Ukraine 0.4% of Q2 consolidated revenue, leaving operations exposed to continuing conflict disruption.
Management's outlook
The 10-Q provides no quantitative revenue or EPS outlook. Management expects 2026 capital expenditures of up to $1.4 billion and expects ERP implementation completion by year-end 2028.
Earlier filings 4
10-K · February 4, 2026
Mondelēz reports global net revenues of $38.5 billion and net earnings of $2.5 billion in 2025 and emphasizes a sharpened strategy focused on chocolate, biscuits & baked snacks with four strategic priorities…
10-Q · April 29, 2025
Mondelēz reported Q1 2025 net revenue of $9,313 million, essentially flat versus Q1 2024 ($9,290 million) but down versus the prior quarter (Q4 2024 $9.6B). Gross margin and operating margin compressed materially —…
10-K · February 5, 2025
Mondelēz reported full-year net revenues of $36.4 billion and net earnings of $4.6 billion in 2024 and reiterates a strategy to accelerate growth by prioritizing chocolate, biscuits and baked snacks while pursuing…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.