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MDLZ · Q2 2026
Archived report (Q2 2026). Latest deep dive →
The quarter in brief
A cocoa-accounting mirage over a steady snacks business — GAAP EPS jumped 145% as commodity-derivative marks reversed, while the underlying picture is organic growth of 2.2% and adjusted EPS down 2.7% under still-elevated cocoa costs; organic guidance nudged up.
Net Earnings
$1,552M
up 141% y/y
Net Revenues
$9,355M
up 4.1% y/y
Operating Income
$1,946M
up 66% y/y
Gross Profit
$3,986M
up 36% y/y
All figures in $M.
| Line item | Amount and change |
|---|---|
| Net Revenues | $9,355 · +4.1% · Organic +2.2% |
| Cost of Sales | $5,369 · -11% · Derivative mark-to-market reversal* |
| Gross Profit | $3,986 · +36% · 42.6% margin · adjusted 34.0% |
| SG&A | $2,001 · +16% · A&C promo + ERP program |
| Impairments & Exit Costs | $13 |
| Intangible Amortization* | $26 · -32% |
| Operating Income | $1,946 · +66% · 20.8% margin |
| Benefit Plan Income | $27 · vs −$264 |
| Interest & Other, net | $74 · +40% |
| Pretax Earnings | $1,899 · +122% |
| Income Taxes | $364 · ETR 19.2% |
| Equity Method Earnings | $17 |
| Net Earnings | $1,552 · +141% |
| Noncontrolling Interests | $4 |
| Net Earnings to MDLZ | $1,548 · +141.5% · Diluted EPS $1.20 · adjusted $0.73 |
Verdict: a cocoa-accounting mirage over a steady snacks business — GAAP EPS jumped 145% as commodity-derivative marks reversed, while the underlying picture is organic growth of 2.2% and adjusted EPS down 2.7% under still-elevated cocoa costs; organic guidance nudged up.
Organic net revenue +2.2% (pricing-led, volume/mix +0.7%) · adjusted EPS $0.73 (−2.7% cc) · adjusted gross margin 34.0% (+20 bp) · FY26: organic growth ≥2%, adjusted EPS flat to +5% cc, FCF ≈$3B.
Source and notation
* marks non-cash / ≈ estimated. Source: Mondelez press release, 8-K EX-99.1 (SEC EDGAR).
Open as an image: MDLZ, Q2 2026 (PNG) ↗ · for sharing and presentations · free to reuse, CC BY 4.0
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Chart: “MDLZ Q2 2026: where the revenue went” by Who Reports Today, https://whoreportstoday.com/t/mdlz/q2-2026. Licensed under CC BY 4.0.
<figure> <a href="https://whoreportstoday.com/t/mdlz/q2-2026"><img src="https://whoreportstoday.com/t/mdlz/q2-2026/sankey.png" alt="MDLZ Q2 2026: where the revenue went" loading="lazy" style="max-width:100%;height:auto"></a> <figcaption>Source: <a href="https://whoreportstoday.com/t/mdlz/q2-2026">Who Reports Today</a>, licensed under <a href="https://creativecommons.org/licenses/by/4.0/">CC BY 4.0</a></figcaption> </figure>
https://whoreportstoday.com/t/mdlz/q2-2026/sankey.png
<a href="https://whoreportstoday.com/t/mdlz/q2-2026">MDLZ Q2 2026 earnings chart (Who Reports Today)</a>
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- The GAAP explosion is mark-to-market: cost of sales FELL 11% despite higher revenue because cocoa and FX derivative marks that crushed last year's quarter reversed — gross margin printed 42.6% (+990 bp), while the adjusted gross margin rose just 20 bp to 34.0%.
- The real business: organic net revenue +2.2%, driven by net pricing with a positive 0.7% volume/mix — pricing against record cocoa costs is sticking without losing volume.
- Adjusted EPS fell 2.7% at constant currency to $0.73 — higher raw-material (cocoa) costs, more advertising and promotion, and ERP implementation costs outweighed pricing.
- SG&A rose 16% to $2,001M on advertising/consumer promotion and the ERP System Implementation program.
- A $291M favorable swing in benefit-plan non-service income (+$27M vs −$264M) adds to the flattering GAAP comparison — last year carried pension participation charges.
- Guidance: organic growth raised to at least 2%, adjusted EPS growth maintained at flat to +5% constant currency, free cash flow ≈$3B; currency now expected to be a tailwind.
- Effective tax rate 19.2%; equity-method earnings ($17M) and a $4M NCI round out the bridge to $1,548M attributable.
What distorts the picture in this report and what to watch beyond the headlines.
MDLZ — Mondelez International manufactures and markets snack foods and beverages, including well-known brands like Oreo, Cadbury, and Trident.
Headquartered in Illinois, USA, it operates globally with a focus on confectionery and packaged snacks.
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