8-K: Mondelz Reports Q1 2026 Results: Revenue Up, EPS Mixed

Mondelz International announced its first quarter 2026 results, with net revenues increasing 8.2% and organic net revenues growing 3.0%, while diluted EPS rose significantly but adjusted EPS saw a decline.

Summary

• Mondelz International reported first quarter 2026 results with a reported net revenue increase of 8.2% to $10,080 million, driven by organic net revenue growth of 3.0%.
• Volume/mix was down 0.5%, while pricing increased by 3.5%.
• Diluted Earnings Per Share (EPS) increased by 41.9% to $0.44.
• Adjusted EPS, however, decreased by 14.9% on a constant currency basis to $0.67.
• Cash provided by operating activities was $0.5 billion, and Free Cash Flow was $0.2 billion.
• The company returned $0.6 billion to shareholders.
• Emerging Markets showed strong top-line growth, while Developed Markets saw improvement.
• The company reaffirmed its 2026 outlook for Organic Net Revenue growth of flat to 2% and Adjusted EPS growth of flat to 5% on a constant currency basis, with an expected Free Cash Flow of approximately $3 billion.

Sentiment

Score: 5

Explanation: StockSavvy.ai views this as a neutral to slightly positive filing, with strong top-line growth and improved reported EPS offset by a decline in adjusted EPS and ongoing cost pressures.

Positives

• Strong top-line growth in Emerging Markets.
• Developed Markets showed signs of improvement.
• Net revenues increased 8.2% year-over-year.
• Organic Net Revenue grew 3.0% year-over-year.
• Diluted EPS increased significantly by 41.9% to $0.44.
• Gross profit increased by $373 million.
• Gross profit margin improved by 170 basis points to 27.8%.
• Operating income increased by $128 million.

Negatives

• Adjusted EPS decreased by 14.9% on a constant currency basis to $0.67.
• Adjusted Gross Profit margin decreased by 270 basis points to 30.7% at constant currency.
• Adjusted Operating Income margin decreased by 310 basis points to 11.7% at constant currency.
• Volume/mix was unfavorable, decreasing by 0.5%.
• Higher input cost inflation impacted Adjusted Gross Profit and Adjusted Operating Income.
• Higher advertising and consumer promotion costs, and higher selling, general and administrative expenses contributed to the decrease in Adjusted Operating Income.
• Cash provided by operating activities decreased from $1.1 billion in Q1 2025 to $0.5 billion in Q1 2026.
• Free Cash Flow decreased from $0.8 billion in Q1 2025 to $0.2 billion in Q1 2026.

Risks

• Ongoing macro volatility, including geopolitical, trade, and regulatory uncertainty.
• Volatility of cocoa and other commodity input costs.
• Potential tariff changes to the United States-Mexico-Canada Agreement (USMCA).
• Weakness and/or volatility in macroeconomic conditions in markets, including inflation and instability of financial institutions.
• Competition and response to channel shifts, pricing, and other competitive pressures.
• Weakness in consumer spending and changes in consumer preferences and demand.
• Unanticipated disruptions to business, such as malware incidents, cyberattacks, or other security breaches.
• Supply, commodity, labor, and transportation constraints.

Future Outlook

For the full year 2026, Mondelz International reaffirms its outlook for Organic Net Revenue growth in the range of flat to 2% and Adjusted EPS growth in the range of flat to 5% on a constant currency basis. The company also expects 2026 Free Cash Flow of approximately $3 billion. Currency translation is estimated to increase 2026 net revenue growth by approximately 2.0% and increase Adjusted EPS by $0.06.

Management Comments

• "We posted solid first quarter results led by strong top-line growth in our Emerging Markets while Developed Market growth showed signs of improvement."
• "These results reflect strong execution of our consumer-centric strategy supported by increased investments behind our brands and growth platforms despite ongoing macro volatility."
• "The fundamentals of our business remain strong, the capabilities of our people are unmatched, and we continue to boldly invest behind our long-term growth opportunities to enable sustained performance for years to come."

Industry Context

StockSavvy.ai notes that Mondelz International's Q1 2026 results reflect a common trend in the consumer staples sector, where companies are navigating inflationary pressures and shifting consumer demand by focusing on pricing strategies and emerging market growth, while managing the impact of currency fluctuations and input cost volatility.

Legal Proceedings

• The filing mentions 'legal and tax proceedings and government investigations' as a risk factor but provides no specific details.

Stakeholder Impact

• Shareholders: The increase in reported EPS and return of capital ($0.6 billion) are positive, but the decrease in adjusted EPS may raise concerns about underlying operational profitability.
• Employees: The ERP System Implementation program and ongoing restructuring actions may impact employees.
• Suppliers: Volatility in commodity input costs and supply chain constraints pose risks.
• Customers: Pricing actions and consumer spending weakness could affect customer purchasing behavior.

Next Steps

• Continue execution of consumer-centric strategy.
• Invest behind brands and growth platforms.
• Monitor and manage ongoing macro volatility.
• Implement ERP System Implementation program, expected completion by year-end 2028.

Key Dates

Recommendation

The filing presents a mixed picture. While top-line growth and reported EPS are strong, the decline in adjusted EPS and ongoing cost pressures, coupled with macroeconomic uncertainties, warrant a cautious approach. The reaffirmed guidance suggests stability, but the divergence between reported and adjusted metrics indicates a need for further monitoring of operational execution and cost management.

Keywords

Mondelz International, Q1 2026 Earnings, Snacking, Organic Net Revenue, Adjusted EPS, Consumer Goods, Financial Results, SEC Filing