Mondelēz International — Q3 2026 Earnings Summary

Financial Performance:

• Net revenues for Q3 2026 were $9,967 million, a 2.3% increase year-over-year (YoY); Organic Net Revenue grew 2.1%.
• Diluted EPS increased 78.9% YoY to $1.02; Adjusted EPS was $0.78, up 5.5% on a constant currency basis.
• Gross profit was $3,924 million (50.2% YoY increase); Gross profit margin was 39.4%, up 12.6 percentage points (pp) YoY. Adjusted Gross Profit margin was 34.2%, up 3.8 pp.
• Operating income was $1,758 million (136.3% YoY increase); Operating income margin was 17.6%, up 10.0 pp YoY. Adjusted Operating Income was $1,384 million, up 18.2% YoY.
• Year-to-date (YTD) Net Revenues were $29,402 million (4.9% YoY); Organic Net Revenue growth was 2.4%.
• YTD Diluted EPS was $2.66 (94.2% YoY increase); Adjusted EPS was $2.18, down 0.9% YoY.
• YTD Net Earnings were $3,413 million (91.1% YoY increase); Adjusted Net Earnings were $2,794 million, down 2.2% YoY.
• Year-to-date cash provided by operating activities was $2.6 billion; Free Cash Flow was $1.7 billion.
• Return of capital to shareholders was $2.8 billion through the third quarter of 2026.
• Cash and cash equivalents were $1,628 million as of September 30, 2026, down from $2,125 million at December 31, 2025.
• Short-term borrowings were $3,653 million; Long-term debt was $16,351 million.

Guidance and Future Outlook:

• Reaffirmed 2026 Organic Net Revenue growth of at least 2%.
• Reaffirmed 2026 Adjusted EPS growth in the range of flat to 5% on a constant currency basis.
• Expects 2026 Free Cash Flow of approximately $3 billion.
• Estimates currency translation will increase 2026 net revenue growth by approximately 1.5% and increase Adjusted EPS by $0.043.
• Outlook assumes greater than usual volatility including geopolitical, trade, and regulatory uncertainty and commodity prices; does not reflect potential USMCA tariff changes.

Business Segments and Product Lines:

• Latin America: Q3 Net Revenues $1,387 million (+12.0% YoY); Organic growth 6.9% (Volume/Mix +0.8 pp, Pricing +6.1 pp).
• Asia, Middle East & Africa (AMEA): Q3 Net Revenues $2,182 million (+8.2% YoY); Organic growth 7.7% (Volume/Mix +5.5 pp, Pricing +2.2 pp).
• Europe: Q3 Net Revenues $3,552 million (-3.3% YoY); Organic decline 2.1% (Volume/Mix +1.6 pp, Pricing -3.7 pp).
• North America: Q3 Net Revenues $2,846 million (+1.1% YoY); Organic growth 1.6% (Volume/Mix 0.0 pp, Pricing +1.6 pp).
• Emerging Markets: Q3 Net Revenues $4,072 million (+4.9% YoY); Organic growth 4.1%.
• Developed Markets: Q3 Net Revenues $5,895 million (+0.5% YoY); Organic growth 0.8%.
• Announced agreement to acquire Undercover Snacks, a quinoa crisp line in the permissible indulgence segment.

Market and Competitive Landscape:

• Reported broad-based volume growth and robust share performance across developed and emerging markets.
• Management cited attractive categories, iconic brands, advantaged geographic footprint, and consumer-centric capabilities as sustaining factors.
• Undercover Snacks is noted for rapidly earning strong consumer preference with a clear runway to expand household penetration.

Risks and Challenges:

• Results impacted by incremental costs due to geopolitical conflicts (Middle East and Ukraine), including destruction of inventory, transportation surcharges, and evacuation costs.
• Higher restructuring charges and intangible asset impairment charges affected reported results.
• Higher costs incurred for the ERP System Implementation program.
• Forward-looking statements note risks from macroeconomic volatility, inflation, trade/tariff actions, commodity price volatility (cocoa), and regulatory uncertainties.
• Potential impacts from currency exchange rate changes and extreme pricing in Argentina (excluded from constant currency measures).

Management Commentary and Tone:

• CEO Dirk Van de Put stated the company delivered "strong third-quarter results" driven by volume growth and share performance.
• Management expressed confidence in delivering "volume-led, compounding earnings growth" and sustaining performance for years to come.
• Management noted they are "resolute" in reinvesting in brands, innovation, and distribution.

Other Key Points:

• Acquisition: Agreement to acquire Undercover Snacks to expand in the permissible indulgence segment.
• ERP Implementation: Completed implementation of new ERP systems for North America and Latin America segments; global program expected to complete by year-end 2028.
• Capital Return: Returned $2.8 billion to shareholders via cash dividends and share repurchases in the first nine months of 2026.
• Share Count: Diluted average shares outstanding were 1,280 million in Q3 2026.
• Non-GAAP Adjustments: Reported results included significant mark-to-market impacts from commodity and foreign currency derivatives, which were excluded from Adjusted measures.