It has been about a month since the last earnings report for Mondelez (MDLZ). Shares have lost about 3.1% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Mondelez due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent drivers for Mondelez International, Inc. before we dive into how investors and analysts have reacted as of late.
Mondelez Q2 Earnings Beat Estimates, 2026 Organic Sales Outlook Up
Mondelez International posted second-quarter 2026 results. Adjusted earnings were 73 cents per share, which decreased 2.7% on a constant-currency (cc) basis. The decline was caused by weaker operating performance and higher interest and other expenses, partially offset by lower income taxes and favorable currency movements. The metric beat the Zacks Consensus Estimate of 67 cents per share.
Net revenues rose 4.1% year over year to $9,355 million, outpacing the Zacks Consensus Estimate of $9,227 million. This growth was driven by 2.2% organic net revenue growth and favorable currency movements, partly offset by the impact of a prior-year divestiture. Organic net revenues rose 2.2% year over year in the second quarter, primarily driven by pricing and volume/mix, which contributed growth of 1.5% and 0.7%, respectively.
Revenues from emerging markets increased 7.4% year over year to $3,909 million, with organic growth of 4.4%. Growth was broad-based across all snacking categories except chocolate, where gains were primarily pricing-led and partially affected by purchase price accounting. Key growth markets included India, continued strength in Brazil and robust performances in Mexico and Southeast Asia.
Revenues from developed markets increased 1.9% year over year to $5,446 million, with organic growth of 0.7%. This increase reflected gradual improvement across key regions, with North America driving revenue, volume, profit and market share growth, while the European business continued to show signs of recovery.
Region-wise, revenues jumped 15.1% in Latin America, 8.2% in Asia, the Middle East and Africa (“AMEA”), 3% in North America and fell 1% in Europe. On an organic basis, revenues rose 8.4% in Latin America, 7.1% in AMEA, 3.4% in North America and fell 3.5% in Europe.
Adjusted gross profit increased $92 million at constant currency, while the adjusted gross profit margin improved 20 basis points to 34%, benefiting from higher net pricing and lower manufacturing costs driven by productivity, partially offset by elevated raw material costs.
Adjusted operating income declined $78 million at constant currency, while the adjusted operating margin contracted 120 basis points to 13.1%, reflecting higher raw material, selling, general and administrative, and advertising and consumer promotion costs, partly offset by higher net pricing and reduced manufacturing costs driven by productivity.
What to Expect From MDLZ in 2026?
For 2026, the company now expects at least 2% organic net revenue growth, up from its previous guidance of flat to 2% growth. It continues to project adjusted EPS growth ranging from flat to 5% on a constant-currency basis and expects approximately $3 billion in free cash flow.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -8.47% due to these changes.
VGM Scores
Currently, Mondelez has a average Growth Score of C, a score with the same score on the momentum front. Charting a somewhat similar path, the stock has a score of D on the value side, putting it in the bottom 40% for value investors.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Mondelez has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Mondelez is part of the Zacks Food - Miscellaneous industry. Over the past month, Lamb Weston (LW), a stock from the same industry, has gained 2.4%. The company reported its results for the quarter ended May 2026 more than a month ago.
Lamb Weston reported revenues of $1.77 billion in the last reported quarter, representing a year-over-year change of +5.6%. EPS of $0.87 for the same period compares with $0.87 a year ago.
Lamb Weston is expected to post earnings of $0.58 per share for the current quarter, representing a year-over-year change of -21.6%. Over the last 30 days, the Zacks Consensus Estimate has changed -1.4%.
Lamb Weston has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.
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This article originally published on Zacks Investment Research (zacks.com).