Mondelez Reports Mixed Q1 Results: Adjusted EPS Down, Cash Flow Declines, Outlook Reaffirmed
MDLZ sits 18% above its 52-week low of $51.201.
Summary
Mondelez International reported mixed first-quarter 2026 results, with GAAP diluted EPS increasing but adjusted EPS declining 14.9% on a constant currency basis, alongside a significant drop in operating cash flow and free cash flow.
Key Events · Earnings and Guidance · MDLZ
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Q1 Financial Performance
Net revenues increased 8.2% to $10.08 billion, with organic net revenue growth of 3.0%. GAAP diluted EPS rose 41.9% to $0.44, but adjusted EPS decreased 14.9% on a constant currency basis to $0.67.
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Cash Flow and Capital Allocation
Cash provided by operating activities significantly declined to $0.5 billion from $1.092 billion in Q1 2025. Free cash flow also dropped to $0.2 billion from $0.815 billion in the prior year. The company reported no common stock repurchases in Q1 2026, a halt from $1.522 billion in Q1 2025.
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Full-Year Outlook Reaffirmed
Mondelez International reaffirmed its 2026 outlook, expecting organic net revenue growth in the range of flat to 2% and adjusted EPS growth of flat to 5% on a constant currency basis. Free cash flow is still projected at approximately $3 billion.
Analysis · MDLZ · Manufacturing
Mondelez International's first-quarter results present a mixed picture for investors. While GAAP diluted EPS increased significantly and organic net revenue grew, adjusted EPS declined by nearly 15% on a constant currency basis. More critically, both operating cash flow and free cash flow saw substantial year-over-year decreases, and the company halted share repurchases for the quarter. The reaffirmation of the full-year outlook provides some stability but the underlying operational and cash flow trends, coupled with the pause in capital returns, suggest potential headwinds despite top-line growth.
At the time of this filing, MDLZ was trading at $60.22 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $75.1B. The 52-week trading range was $51.20 to $71.15. This filing was assessed with neutral market sentiment and an importance score of 8 out of 10.