Mondelez Reports Mixed Q1 Results: Adjusted EPS Down, Cash Flow Declines, Outlook Reaffirmed

summarizeSummary

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.

check_boxKey Events

• 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.

• 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.

• 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.

auto_awesomeAnalysis

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.