Mondelez Q2 Earnings Beat Estimates, 2026 Organic Sales Outlook Up

Net revenues rose 4.1% year over year to $9,355 million, outpacing the Zacks Consensus Estimate of $9,227 million. This growth was driven by 2.2% organic net revenue growth and favorable currency movements, partly offset by the impact of a prior-year divestiture.

Organic net revenues rose 2.2% year over year in the second quarter, primarily driven by pricing and volume/mix, which contributed growth of 1.5% and 0.7%, respectively.

MDLZ’s Revenue & Margin Breakdown: Key Insights

Revenues from emerging markets increased 7.4% year over year to $3,909 million, with organic growth of 4.4%. Growth was broad-based across all snacking categories except chocolate, where gains were primarily pricing-led and partially affected by purchase price accounting. Key growth markets included India, continued strength in Brazil and robust performances in Mexico and Southeast Asia. 

Revenues from developed markets increased 1.9% year over year to $5,446 million, with organic growth of 0.7%. This increase reflected gradual improvement across key regions, with North America driving revenue, volume, profit and market share growth, while the European business continued to show signs of recovery.

Region-wise, revenues jumped 15.1% in Latin America, 8.2% in Asia, the Middle East and Africa (“AMEA”), 3% in North America and fell 1% in Europe. On an organic basis, revenues rose 8.4% in Latin America, 7.1% in AMEA, 3.4% in North America and fell 3.5% in Europe.

Adjusted gross profit increased $92 million at constant currency, while the adjusted gross profit margin improved 20 basis points to 34%, benefiting from higher net pricing and lower manufacturing costs driven by productivity, partially offset by elevated raw material costs.

Adjusted operating income declined $78 million at constant currency, while the adjusted operating margin contracted 120 basis points to 13.1%, reflecting higher raw material, selling, general and administrative, and advertising and consumer promotion costs, partly offset by higher net pricing and reduced manufacturing costs driven by productivity.

Mondelez’s Financial Health Snapshot

MDLZ ended the quarter with cash and cash equivalents of $1,716 million and long-term debt of $16,460 million. For the six months ended June 30, 2026, the company generated $1,322 million in net cash from operating activities and delivered free cash flow of $668 million.

Year to date, the company has returned $1.5 billion in capital to shareholders through dividends and share repurchases.

MDLZ increased its quarterly cash dividend by 4% to 52 cents per share.

What to Expect From MDLZ in 2026?

For 2026, the company now expects at least 2% organic net revenue growth, up from its previous guidance of flat to 2% growth. It continues to project adjusted EPS growth ranging from flat to 5% on a constant-currency basis and expects approximately $3 billion in free cash flow. 

This Zacks Rank #3 (Hold) company has risen 1.7% in the past three months compared with the industry’s 3.3% growth.

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Stocks to Consider

United Natural Foods, Inc. UNFI distributes natural, organic, specialty, produce and conventional grocery and non-food products in the United States and Canada. At present, United Natural sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. 

The consensus estimate for United Natural’s current fiscal-year earnings implies growth of 254.9% from the year-ago figures. UNFI delivered a trailing four-quarter earnings surprise of 29.9%, on average.

US Foods Holding Corp. USFD engages in the marketing, sale and distribution of fresh, frozen and dry food and non-food products to foodservice customers in the United States. USFD currently carries a Zacks Rank #2 (Buy). US Foods Holding delivered a trailing four-quarter earnings surprise of 1.4%, on average.

The Zacks Consensus Estimate for US Foods Holding’s current fiscal-year sales and earnings implies growth of 5.1% and 16.3%, respectively, from the year-ago figures.

The J. M. Smucker Company SJM manufactures and markets branded food and beverage products worldwide. It currently has a Zacks Rank #2. SJM delivered a trailing four-quarter earnings surprise of 1.5%, on average.

The Zacks Consensus Estimate for The J. M. Smucker’s current fiscal-year earnings indicates growth of 8.7%, from the prior-year reported levels.

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