MDLZ Q2 Sales Beat and Higher 2026 Growth View Put Margins in Focus

MDLZ Q2 Results Show Better Top-Line Momentum

Second-quarter net revenues increased 4.1% year over year to $9,355 million, above the Zacks Consensus Estimate of $9,227 million. Adjusted earnings of 73 cents per share also beat the consensus estimate of 67 cents, even though the metric declined 2.7% at constant currency.

Organic net revenues rose 2.2%, with pricing contributing 1.5 percentage points and volume/mix adding 0.7 points. Positive contributions from both show that the quarter was not dependent on pricing alone.

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Mondelez Raises the 2026 Organic Growth Bar

Management now expects at least 2% organic net revenue growth in 2026, up from its previous range of flat to 2%. The revision followed 2.2% organic growth in the second quarter and reflects the strength of year-to-date performance.

The higher floor reinforces confidence in the second-half sales trajectory. Mondel??z continues to emphasize consumer propositions, new occasions, distribution and innovation while pursuing productivity and cost savings.

MDLZ Emerging Markets and North America Lead

Regional results show the breadth behind the improved outlook. Asia, Middle East and Africa delivered 7.1% organic growth, Latin America posted 8.4% and North America increased 3.4%. North American volume/mix rose 1.2 percentage points, while Asia, Middle East and Africa posted a 5.2-point gain.

Distribution and innovation are adding support. Mondel??z added more than 100,000 direct outlets in India during the first half of 2026, while its Brazilian portfolio reached about 1 million stores. North America also benefited from disciplined promotions and expansion across online, convenience and value channels.

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Mondelez Margins Keep the Earnings Debate Open

Adjusted operating income declined 6.1% at constant currency in the second quarter, while adjusted operating margin contracted 120 basis points to 13.1%. Higher raw-material costs, selling, general and administrative expenses and advertising and consumer promotion spending absorbed part of the gains from pricing and productivity.

Management kept 2026 adjusted EPS growth guidance at flat to 5% on a constant-currency basis. Cocoa cost phasing, other input costs tied to the Middle East conflict and continued reinvestment remain constraints on near-term earnings conversion.

The Hershey Company HSY, the No. 1 U.S. confection company and No. 2 in U.S. snacking, is a relevant comparison for the chocolate and snacking landscape. General Mills, Inc. GIS offers another packaged-food reference point, balancing brand investment with efficiency programs as it manages higher input costs.

MDLZ Signals Support a Measured Read on the Q2 Beat

The bottom line is that the Q2 beat and higher organic growth outlook improve the sales narrative, but margins remain the more demanding test. Revenue growth will matter more if a larger share begins to translate into operating profit.

The stock currently carries a Zacks Rank #3 (Hold). Its Growth Score of C reflects a middling growth profile, while the VGM Score of D, Value Score of D and Momentum Score of F are less favorable across combined style, valuation and price-trend characteristics. That mix supports a measured read rather than treating one quarter as decisive. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here

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This article originally published on Zacks Investment Research (zacks.com).

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