Mondelez Q3 2026 earnings: profit tops estimates as cocoa costs ease
Mondelez's Q3 2026 adjusted profit beat estimates as easing cocoa costs lifted margins, even as revenue came in slightly below forecasts; full-year guidance held steady.
| Q3 2026 | Reported | Expected | Surprise |
|---|---|---|---|
| EPS | $0.78 | $0.73 | +7.5% |
| Revenue | $9.97B | $10.18B | -2.1% |
Key takeaways
- Adjusted profit per share beat Wall Street’s forecast, while revenue came in just under what analysts had expected, a mixed scorecard that still let the stock react positively.
- Sales growth was driven mainly by higher volumes — people buying more snacks and chocolate, not just higher prices — with organic revenue (stripping out currency swings and deal effects) up about 2%.
- Profitability improved from a year ago as cocoa costs, which had been squeezing the company for the past couple of years, started easing; management pointed to lower raw-material costs, manufacturing productivity gains, and favorable timing on cocoa purchases as the main reasons margins widened.
- The trailing-twelve-month margins in the figures above reflect that easier cost backdrop — a gross margin above 31% and a net profit margin near 9% are both better than Mondelez was posting during the worst of the cocoa price spike.
- Management reaffirmed its full-year 2026 targets rather than raising them: organic revenue growth of at least 2%, adjusted earnings growth of flat to 5% (adjusted for currency moves), and roughly $3 billion in free cash flow — the cash left over after running and investing in the business.
- The finance chief said the quarter’s upside was being reinvested into the business — for example in marketing and productivity programs — rather than banked as extra profit, which is why guidance didn’t move higher despite the beat.
- Mondelez disclosed an agreement to acquire Undercover Snacks, a quinoa-crisp snack brand, as it looks to expand into what it calls “permissible indulgence” — snacks marketed as a better-for-you treat — building out its portfolio beyond its core chocolate and biscuit brands.
- Coverage of the quarter noted that currency translation is expected to be a modest tailwind for both revenue and earnings this year, meaning some of the reported growth reflects exchange-rate movement rather than underlying business performance.
Fundamentals
| Metric | Value | Period |
|---|---|---|
| Gross margin | 31.1% | Trailing 12 months |
| Operating margin | 11.2% | Trailing 12 months |
| Net profit margin | 8.9% | Trailing 12 months |
| Pretax margin | 10.8% | Trailing 12 months |
| EPS | $2.73 | Trailing 12 months |
| Revenue growth (YoY) | 6.9% | Trailing 12 months |
| EPS growth (YoY) | -0.4% | Trailing 12 months |
| Return on equity | 13.5% | Trailing 12 months |
Sources: company report · earnings call