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FY2026 Q1
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Mondelez International, Inc. earnings call
Buzzberg read
Emerging markets growth remains strong at 6.3% in Q1
Mondelez reported a solid Q1 2026, beating internal expectations, driven by strong emerging market growth and stabilizing developed markets. Management maintained FY2026 EPS guidance, citing the need to reinvest upside and manage unexpected costs from the Middle East crisis. Emerging markets grew 6.3% in Q1, with strong performance in India, China, and Brazil.
Buzzberg read Emerging markets growth remains strong at 6.3% in Q1 Mondelez reported a solid Q1 2026, beating internal expectations, driven by strong emerging market growth and stabilizing developed markets. Management maintained FY2026 EPS guidance, citing the need to reinvest upside and manage unexpected costs from the Middle East crisis. Emerging markets grew 6.3% in Q1, with strong performance in India, China, and Brazil. Read full analysisCollapse analysis
Mondelez reported a solid Q1 2026, beating internal expectations, driven by strong emerging market growth and stabilizing developed markets. Management maintained FY2026 EPS guidance, citing the need to reinvest upside and manage unexpected costs from the Middle East crisis. Emerging markets grew 6.3% in Q1, with strong performance in India, China, and Brazil.
- US business saw slight positive net revenue growth, with share gains in crackers and candy.
- European chocolate volumes are improving, driven by a strong Easter season and the Biscoff partnership.
- Management is reinvesting in the business and maintaining EPS guidance for FY2026.
EMERGING_MARKETS Revenue growth6.3%Reported
Revenue$10.08B-4% QoQ
EPS$0.67-7% QoQ
Gross margin27.81%Reported
6 grounded callouts
What matters now
The highest-signal changes from the call.
Macro
US consumer confidence expected to further deteriorate
Share
US Biscuit share gains driven by Ritz and Sour Patch Kids
Show 3 more callouts
Innovation
Biscoff partnership is a major growth driver globally
Input Costs
Cocoa prices may decline further; industry coverage at 10 months
Capex
North America supply chain modernization to cut costs
Reported period
Actuals
| Metric | Reported | Change |
|---|---|---|
| EMERGING_MARKETS Revenue growth | 6.3% | Reported |
| Revenue | $10.08B | -4% QoQ |
| EPS | $0.67 | -7% QoQ |
| Gross margin | 27.81% | Reported |
| Operating margin | 8.53% | Reported |
| Free cash flow | $0.155B | Reported |
Forward-looking
Forward guidance
| Metric | Period | Range | Midpoint | Status |
|---|---|---|---|---|
| EPS | FY2026 | 5%–7% | 6% | Maintained |
AI, capex & demand read
Management read
Cautiously Optimisti
Management expressed confidence in Q1 performance and innovation momentum but highlighted headwinds from the Middle East conflict and confirmed guidance, indicating a balanced, cautious outlook.
Investment and capacity
Management discussed a supply chain modernization program in North America biscuits, which involves bringing co-manufactured products in-house, investing in packaging capabilities, and automating the DSD network to reduce costs and improve flexibility.
all 2 named companies below
Companiesreturns since call
Customers
Customers
Dirk van der Putt
Walmart and Costco are outperforming the broader US biscuit market in terms of category growth, indicating a channel shift benefiting these retailers.
Evidence
“For instance, Walmart, the value channel, and Costco saw biscuits grow over 4% versus the total U.S. biscuit market, which was only 0.3% up.”
External signals
Supply-chain alpha · 3returns since call
The industry-wide cocoa coverage has extended to ~10 months, which supports the current cocoa price of $2,500/tonne, despite an expected surplus.
Evidence
“In fact, if we look at the average coverage of the industry at this point in time, It exceeds around about 10 months, which is the highest we have seen in a while. And so to say that what you saw in terms of price increases in the cocoa ma…”
The GST change in India is helping consumption of Mondelez products, contributing to strong double-digit growth in Q1.
Evidence
“And then, of course, there was the GST change in India that is helping consumption in quite a way.”
Mondelez plans to bring some co-manufactured product lines in-house to save money and increase flexibility, which could impact contract manufacturers.
Evidence
“We have proven lines of business that are at the moment manufactured through co-manufacturers. And we want to bring those in-house. So those are proven volume platforms, things that really work well from a consumer standpoint.”
Methodology & coverage
Management-only analysis. All 2 validated company mentions are shown. Reported actuals and forward guidance are kept separate. Public evidence is limited to eight short attributed quotes. AI-generated analysis can be incomplete or wrong; verify important claims against the original source.