$MDLZ · Mondelez International, Inc.
Mondelez International filed its Q3 FY2026 10-Q, reporting net revenues of $9.967B (+2.3% YoY), GAAP diluted EPS of $1.02, and adjusted EPS of $0.78. Operating income surged to $1.758B from $744M a year ago, largely due to a $543M mark-to-market derivative gain versus a $348M loss in the prior-year quarter. Nine-month net earnings attributable to Mondelez reached $3.413B, nearly double the $1.786B from the same period in 2025.
- Q3 net revenues rose 2.3% YoY to $9.967B; organic net revenue grew 2.4%.
- Q3 operating income jumped 136% to $1.758B, driven by $543M in mark-to-market derivative gains vs. $348M loss last year.
- Q3 GAAP diluted EPS was $1.02 vs. $0.57 a year ago; adjusted EPS was $0.78.
- Nine-month net earnings attributable to Mondelez nearly doubled to $3.413B from $1.786B.
- Gross margin expanded sharply: Q3 gross profit was $3.924B (39.4% margin) vs. $2.612B (26.8%) last year.
Extended-hours trading shows MDLZ at $64.50, up 3.15% from the regular-session close of $62.53. The market is rewarding the massive operating-income beat and gross-margin recovery, though the derivative-driven nature of the gain warrants scrutiny.
A 136% operating-income surge and near-doubling of nine-month net earnings to $3.4B make this one of Mondelez's strongest quarters, but the derivative-driven nature demands investor scrutiny.
Mondelez's 2.4% organic revenue growth and margin recovery contrast with peers struggling under persistent cocoa and input-cost inflation. The derivative-driven operating-income swing highlights how commodity hedging can dominate reported earnings for packaged-food companies.
Mark-to-market derivative gains of $543M in Q3 (vs. $348M loss last year) are volatile and could reverse. Highly inflationary exposure in Argentina, Türkiye, Egypt, and Nigeria (combined ~2.7% of revenue) creates ongoing currency remeasurement risk. Asset impairments and exit costs rose to $128M in Q3 from $41M last year.