Key Highlights

  • Net revenues rose 2.3% to $9,967 million, while Organic Net Revenue grew 2.1% to $9,942 million.
  • Operating income increased 136.3% to $1,758 million from $744 million.
  • Diluted EPS was $1.02, up 78.9% from $0.57, and Adjusted EPS rose 6.8% to $0.78.
  • Adjusted Operating Income climbed 18.2% to $1,384 million.
  • Total Debt stood at $21.7 billion, with a $0.52 per share Dividend paid on October 14, 2026.

A swing in derivative marks drives a very large reported gain

Mondelez International (NASDAQ:MDLZ) filed its Quarterly Report for the period ended September 30, 2026, on October 29, 2026. Net revenues grew 2.3% to $9,967 million from $9,744 million, helped by favorable Volume and mix, higher net pricing and currency gains, while lapping a prior year divestiture held back the total.

Reported operating income jumped $1,014 million to $1,758 million. The company's reconciliation shows mark-to-market gains from Derivatives of $543 million this year, compared with losses of $348 million in the prior year quarter, a swing of $891 million.

Net Earnings attributable to the company were $1,305 million, up 75.6% from $743 million, and diluted EPS rose to $1.02 from $0.57.

Adjusted earnings tell a steadier story

Stripping out items such as restructuring charges of $55 million, intangible asset impairments of $64 million and ERP System Implementation costs of $66 million, Adjusted Operating Income was $1,384 million, up 18.2% from $1,171 million. Adjusted EPS increased 6.8% to $0.78, or 5.5% to $0.77 on a constant currency basis.

On a constant currency basis, the $199 million gain in Adjusted Operating Income reflected $329 million of lower input costs, $54 million from volume and mix and $31 million from pricing. Higher selling, general and administrative expenses of $227 million offset part of that.

Emerging markets grow while Europe slips

Latin America net revenues rose 12.0% to $1,387 million, with pricing adding 6.1 percentage points. AMEA grew 8.2% to $2,182 million, led by volume and mix of 5.5 points, and segment operating income there rose 86.9% to $372 million.

Europe net revenues fell 3.3% to $3,552 million as lower net pricing of 3.7 points and currency translation outweighed volume and mix gains. Its segment operating income still rose 23.3% to $339 million on lower raw material costs.

North America Margin pressure stands out

North America net revenues increased 1.1% to $2,846 million, with higher pricing of 1.6 points and flat volume and mix. Segment operating income fell 18.1% to $448 million from $547 million.

The company cited higher Advertising and consumer promotion costs, higher raw material costs and higher intangible asset Impairment charges.

Nine-month results, Capital returns and balance sheet

For the first nine months, net revenues were $29,402 million, up 4.9%, and Organic Net Revenue grew 2.4%. Diluted EPS was $2.66, up 94.2%, while Adjusted EPS was $2.18, down 0.9%.

The company repurchased approximately 14 million shares for about $874 million over nine months, with roughly $5.8 billion remaining under a $9.0 billion program running through December 31, 2027. It paid dividends of $1,927 million, compared with $1,842 million a year earlier.

Total debt was $21.7 billion at September 30, 2026, versus $21.2 billion at year end, and the debt-to-capitalization ratio was 0.45.

What to watch in coming quarters

Management said cocoa prices, while below prior year peaks, are expected to stay elevated compared with historical levels, and that price elasticity has hurt demand, particularly in Europe. The company also flagged tariffs and geopolitical disruption as ongoing risks.