Mondelez International, Inc 10-Q for FY2026 Q3
Mondelez International, Inc. (MDLZ)
10-Q
2026-10-29
For: 2026-09-30
View Original
Added on
October 29, 2026
About this 10-Q
Mondelez International, Inc filed this 10-Q on October 29, 2026, covering the quarter ended September 30, 2026 (FY2026 Q3).
Mondelez International reported third-quarter 2026 net revenue growth of 2.3% to $10.0 billion, Organic Net Revenue growth of 2.1% to $9.9 billion, and diluted EPS growth of 78.9% to $1.02; Adjusted EPS increased 6.8% to $0.78. AI summary
Headline figures
Quarter ended September 30, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.
- Revenue
- $9.97B
- up 2.3% from $9.74B a year earlier
- Net income
- $1.31B
- up 75.6% from net income of $743M a year earlier
- Diluted EPS
- $1.02
- up 78.9% from $0.57 a year earlier
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||||||
For the quarterly period ended September 30, 2026
OR
| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||||||
For the transition period from to
Commission file number 1-16483
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||
| (Address of principal executive offices) | (Zip Code) | |||||||
Not Applicable
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
x | Accelerated filer | ☐ | |||||||||||||||
| Non-accelerated filer | ☐ | Smaller reporting company | |||||||||||||||
| Emerging growth company | |||||||||||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No x
At October 26, 2026, there were 1,265,838,379 shares of the registrant’s Class A Common Stock outstanding.
Mondelēz International, Inc.
Table of Contents
| Page No. | ||||||||
| FINANCIAL INFORMATION | ||||||||
| Item 1. | Financial Statements (Unaudited) | |||||||
| Item 2. | ||||||||
| Item 3. | ||||||||
| Item 4. | ||||||||
| OTHER INFORMATION | ||||||||
| Item 1. | ||||||||
| Item 1A. | ||||||||
| Item 2. | ||||||||
| Item 5. | ||||||||
| Item 6. | ||||||||
In this report, for all periods presented, “we,” “us,” “our,” “the Company” and “Mondelēz International” refer to Mondelēz International, Inc. and subsidiaries. References to “Common Stock” refer to our Class A Common Stock.
 | ||||||||
PART I – FINANCIAL INFORMATION
Item 1. Financial Statements
Mondelēz International, Inc. and Subsidiaries
Condensed Consolidated Statements of Earnings
(in millions of U.S. dollars, except per share data)
(Unaudited)
| For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Net revenues | $ | $ | $ | $ | |||||||||||||||||||
| Cost of sales | ( | ( | ( | ( | |||||||||||||||||||
| Gross profit | |||||||||||||||||||||||
| Selling, general and administrative expenses | ( | ( | ( | ( | |||||||||||||||||||
Asset impairments and exit costs | ( | ( | ( | ( | |||||||||||||||||||
Gain on divestiture | |||||||||||||||||||||||
| Amortization of intangible assets | ( | ( | ( | ( | |||||||||||||||||||
| Operating income | |||||||||||||||||||||||
Benefit plan non-service income/(expense) | ( | ( | |||||||||||||||||||||
| Interest and other expense, net | ( | ( | ( | ( | |||||||||||||||||||
| Earnings before income taxes | |||||||||||||||||||||||
| Income tax provision | ( | ( | ( | ( | |||||||||||||||||||
Gain/(loss) on equity method investment transactions | ( | ||||||||||||||||||||||
| Equity method investment net earnings | |||||||||||||||||||||||
| Net earnings | |||||||||||||||||||||||
| less: Noncontrolling interest earnings | ( | ( | ( | ( | |||||||||||||||||||
Net earnings attributable to Mondelēz International | $ | $ | $ | $ | |||||||||||||||||||
| Per share data: | |||||||||||||||||||||||
Basic earnings per share attributable to Mondelēz International | $ | $ | $ | $ | |||||||||||||||||||
Diluted earnings per share attributable to Mondelēz International | $ | $ | $ | $ | |||||||||||||||||||
See accompanying notes to the condensed consolidated financial statements.
1 | | |||||||
Mondelēz International, Inc. and Subsidiaries
Condensed Consolidated Statements of Comprehensive Earnings
(in millions of U.S. dollars)
(Unaudited)
| For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Net earnings | $ | $ | $ | $ | |||||||||||||||||||
| Other comprehensive earnings/(losses), net of tax: | |||||||||||||||||||||||
| Currency translation adjustment | ( | ( | ( | ||||||||||||||||||||
| Pension and other benefit plans | |||||||||||||||||||||||
| Derivative cash flow hedges | ( | ||||||||||||||||||||||
| Total other comprehensive earnings/(losses) | ( | ( | |||||||||||||||||||||
Comprehensive earnings | |||||||||||||||||||||||
less: Comprehensive earnings/(losses) attributable to noncontrolling interests | ( | ( | ( | ( | |||||||||||||||||||
Comprehensive earnings attributable to Mondelēz International | $ | $ | $ | $ | |||||||||||||||||||
See accompanying notes to the condensed consolidated financial statements.
2 | | |||||||
Mondelēz International, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(in millions of U.S. dollars, except share data)
(Unaudited)
| September 30, 2026 | December 31, 2025 | ||||||||||
| ASSETS | |||||||||||
| Cash and cash equivalents | $ | $ | |||||||||
Trade receivables, less allowance ($ | |||||||||||
Other receivables, less allowance ($ | |||||||||||
Inventories | |||||||||||
| Other current assets | |||||||||||
| Total current assets | |||||||||||
| Property, plant and equipment, net | |||||||||||
Operating lease right-of-use assets | |||||||||||
| Goodwill | |||||||||||
| Intangible assets, net | |||||||||||
| Prepaid pension assets | |||||||||||
| Deferred income taxes | |||||||||||
| Equity method investments | |||||||||||
| Other assets | |||||||||||
| TOTAL ASSETS | $ | $ | |||||||||
| LIABILITIES | |||||||||||
| Short-term borrowings | $ | $ | |||||||||
| Current portion of long-term debt | |||||||||||
| Accounts payable | |||||||||||
| Accrued marketing | |||||||||||
| Accrued employment costs | |||||||||||
| Other current liabilities | |||||||||||
| Total current liabilities | |||||||||||
| Long-term debt | |||||||||||
| Long-term operating lease liabilities | |||||||||||
| Deferred income taxes | |||||||||||
| Accrued pension costs | |||||||||||
| Accrued postretirement health care costs | |||||||||||
| Other liabilities | |||||||||||
| TOTAL LIABILITIES | |||||||||||
Commitments and Contingencies (Note 9) | |||||||||||
| EQUITY | |||||||||||
Common Stock, no par value ( | |||||||||||
| Additional paid-in capital | |||||||||||
| Retained earnings | |||||||||||
| Accumulated other comprehensive losses | ( | ( | |||||||||
Treasury stock, at cost ( | ( | ( | |||||||||
| Total Mondelēz International Shareholders’ Equity | |||||||||||
| Noncontrolling interest | |||||||||||
| TOTAL EQUITY | |||||||||||
| TOTAL LIABILITIES AND EQUITY | $ | $ | |||||||||
See accompanying notes to the condensed consolidated financial statements.
3 | | |||||||
Mondelēz International, Inc. and Subsidiaries
Condensed Consolidated Statements of Equity
(in millions of U.S. dollars, except per share data)
(Unaudited)
| Mondelēz International Shareholders’ Equity | |||||||||||||||||||||||||||||||||||||||||
| Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Earnings/ (Losses) | Treasury Stock | Non-controlling Interest | Total Equity | |||||||||||||||||||||||||||||||||||
| Three Months Ended September 30, 2026 | |||||||||||||||||||||||||||||||||||||||||
| Balances at July 1, 2026 | $ | $ | $ | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||
Comprehensive earnings/(losses): | |||||||||||||||||||||||||||||||||||||||||
| Net earnings | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Other comprehensive earnings/(losses), net of income taxes | — | — | — | ( | — | ( | ( | ||||||||||||||||||||||||||||||||||
Exercise of stock options and issuance of other stock awards | — | — | — | ||||||||||||||||||||||||||||||||||||||
| Common Stock repurchased | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||
Cash dividends declared ($ | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||
Dividends paid on noncontrolling interest and other activities | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||
| Balances at September 30, 2026 | $ | $ | $ | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||
| Nine Months Ended September 30, 2026 | |||||||||||||||||||||||||||||||||||||||||
| Balances at January 1, 2026 | $ | $ | $ | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||
Comprehensive earnings/(losses): | |||||||||||||||||||||||||||||||||||||||||
| Net earnings | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Other comprehensive earnings/(losses), net of income taxes | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||
Exercise of stock options and issuance of other stock awards | — | — | — | ||||||||||||||||||||||||||||||||||||||
| Common Stock repurchased | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||
Cash dividends declared ($ | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||
Dividends paid on noncontrolling interest and other activities | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||
| Balances at September 30, 2026 | $ | $ | $ | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||
| Three Months Ended September 30, 2025 | |||||||||||||||||||||||||||||||||||||||||
| Balances at July 1, 2025 | $ | $ | $ | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||
Comprehensive earnings/(losses): | |||||||||||||||||||||||||||||||||||||||||
| Net earnings | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Other comprehensive earnings/(losses), net of income taxes | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||
Exercise of stock options and issuance of other stock awards | — | — | — | ||||||||||||||||||||||||||||||||||||||
| Common Stock repurchased | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||
Cash dividends declared ($ | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||
Dividends paid on noncontrolling interest and other activities | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||
| Balances at September 30, 2025 | $ | $ | $ | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||
| Nine Months Ended September 30, 2025 | |||||||||||||||||||||||||||||||||||||||||
| Balances at January 1, 2025 | $ | $ | $ | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||
Comprehensive earnings/(losses): | |||||||||||||||||||||||||||||||||||||||||
| Net earnings | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Other comprehensive earnings/(losses), net of income taxes | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Exercise of stock options and issuance of other stock awards | — | ( | — | — | |||||||||||||||||||||||||||||||||||||
| Common Stock repurchased | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||
Cash dividends declared ($ | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||
Dividends paid on noncontrolling interest and other activities | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||
| Balances at September 30, 2025 | $ | $ | $ | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||
See accompanying notes to the condensed consolidated financial statements.
4 | | |||||||
Mondelēz International, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(in millions of U.S. dollars)
(Unaudited)
| For the Nine Months Ended September 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| CASH PROVIDED BY/(USED IN) OPERATING ACTIVITIES | |||||||||||
| Net earnings | $ | $ | |||||||||
| Adjustments to reconcile net earnings to operating cash flows: | |||||||||||
| Depreciation and amortization | |||||||||||
| Stock-based compensation expense | |||||||||||
Deferred income tax provision/(benefit) | ( | ||||||||||
| Asset impairments and accelerated depreciation | |||||||||||
Gain on divestiture | ( | ||||||||||
Loss on equity method investment transactions | |||||||||||
| Equity method investment net earnings | ( | ( | |||||||||
| Distributions from equity method investments | |||||||||||
Unrealized (gain)/loss on derivative contracts | ( | ||||||||||
Contingent consideration adjustments | ( | ( | |||||||||
| Other non-cash items, net | ( | ||||||||||
| Change in assets and liabilities, net of acquisitions and divestitures: | |||||||||||
| Receivables, net | ( | ( | |||||||||
Inventories | ( | ( | |||||||||
| Accounts payable | ( | ( | |||||||||
| Other current assets | ( | ||||||||||
| Other current liabilities | ( | ||||||||||
| Change in pension and postretirement assets and liabilities, net | ( | ||||||||||
| Net cash provided by operating activities | |||||||||||
| CASH PROVIDED BY/(USED IN) INVESTING ACTIVITIES | |||||||||||
| Capital expenditures | ( | ( | |||||||||
| Acquisitions, net of cash received | ( | ||||||||||
Proceeds from divestitures | |||||||||||
Proceeds from derivative settlements | |||||||||||
Payments for derivative settlements | ( | ( | |||||||||
Proceeds from investments | |||||||||||
Proceeds from sales of property, plant and equipment and other | |||||||||||
Net cash used in investing activities | ( | ( | |||||||||
| CASH PROVIDED BY/(USED IN) FINANCING ACTIVITIES | |||||||||||
| Issuances of commercial paper, maturities greater than 90 days | |||||||||||
| Repayments of commercial paper, maturities greater than 90 days | ( | ||||||||||
Net issuance of short-term borrowings | |||||||||||
| Long-term debt proceeds | |||||||||||
| Long-term debt repayments | ( | ( | |||||||||
| Repurchases of Common Stock | ( | ( | |||||||||
| Dividends paid | ( | ( | |||||||||
| Other | |||||||||||
| Net cash used in financing activities | ( | ( | |||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | ( | ||||||||||
| Cash, cash equivalents and restricted cash: | |||||||||||
(Decrease)/increase | ( | ||||||||||
| Balance at beginning of period | |||||||||||
| Balance at end of period | $ | $ | |||||||||
See accompanying notes to the condensed consolidated financial statements.
5 | | |||||||
Mondelēz International, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements
(Unaudited)
Note 1. Basis of Presentation
Our interim condensed consolidated financial statements are unaudited. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been omitted. It is management’s opinion that these financial statements include all normal and recurring adjustments necessary for a fair statement of our results of operations, financial position and cash flows. Results of operations for any interim period are not necessarily indicative of future or annual results. For a complete set of consolidated financial statements and related notes, refer to our Annual Report on Form 10-K for the year ended December 31, 2025.
Principles of Consolidation
The condensed consolidated financial statements include Mondelēz International, Inc. as well as our wholly owned and majority owned subsidiaries, except our Venezuelan subsidiaries that were deconsolidated in 2015. All intercompany transactions are eliminated. The noncontrolling interest represents the noncontrolling investors' interests in the results of subsidiaries that we control and consolidate. We account for investments in common stock or in-substance common stock over which we exercise significant influence under the equity method of accounting.
Highly Inflationary Accounting
Cash, Cash Equivalents and Restricted Cash
Allowances for Credit Losses
Changes in allowances for credit losses consisted of:
| Allowance for Trade Receivables | Allowance for Other Current Receivables | Allowance for Long-Term Receivables | |||||||||||||||
| (in millions) | |||||||||||||||||
| Balance at January 1, 2026 | $ | ( | $ | ( | $ | ( | |||||||||||
Net recovery for expected credit losses | |||||||||||||||||
Currency and other | |||||||||||||||||
| Balance at September 30, 2026 | $ | ( | $ | ( | $ | ( | |||||||||||
Transfers of Financial Assets
The outstanding principal amount of receivables under our uncommitted revolving non-recourse accounts receivable factoring arrangements amounted to $229 million as of September 30, 2026 and $674 million as of December 31, 2025. The incremental costs of factoring receivables under these arrangements were recorded in selling, general and administrative expenses in the condensed consolidated statements of earnings and were not material for all periods presented. The proceeds from the sales of receivables are included in cash from operating activities in the condensed consolidated statements of cash flows.
6 | | |||||||
Non-Cash Lease Transactions
We recorded $163 million in operating lease and $161 million in finance lease right-of-use assets obtained in exchange for lease obligations during the nine months ended September 30, 2026 and $119 million in operating lease and $139 million in finance lease right-of-use assets obtained in exchange for lease obligations during the nine months ended September 30, 2025.
Supply Chain Financing
New Accounting Pronouncements - Adopted
In July 2025, the FASB issued an ASU which introduces a practical expedient that allows entities to measure expected credit losses on current accounts receivable and current contract assets by assuming that the conditions existing at the balance sheet date remain unchanged over the remaining life of those assets. The guidance is intended to simplify the application of the current expected credit loss model by reducing the need to develop forward-looking forecasts for short-term trade receivables. We adopted the practical expedient on a prospective basis during the quarter ended March 31, 2026 and the impact on our consolidated financial statements was not material.
In September 2025, the FASB issued an ASU that refines the scope of derivative accounting by introducing a new exception for contracts whose underlyings are based on the operations or activities of one of the parties, among other updates. The ASU is effective for interim and annual periods beginning after December 15, 2026, with early adoption permitted. The guidance may be applied either on a prospective or modified retrospective basis. We early adopted the ASU on a modified retrospective basis effective January 1, 2026, and there was no impact on our consolidated financial statements.
New Accounting Pronouncements - Not Yet Adopted
In November 2024, the FASB issued an ASU that will require incremental disclosures in the notes to the financial statements to disaggregate income statement expense line items into specified expense categories and to provide additional information about certain expenses. The ASU is effective for the first annual reporting period beginning after December 15, 2026 and for interim reporting periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. The guidance may be applied either on a prospective or retrospective basis. We currently expect to adopt the guidance when it becomes effective, for our annual reporting for the year ending December 31, 2027 and for our interim reporting in the first quarter of 2028. We are currently assessing the impact on our consolidated financial statements and related disclosures, as well as whether we will adopt the guidance on a prospective or retrospective basis.
In September 2025, the FASB issued an ASU that improves the accounting for internal-use software by replacing the previous capitalization guidance, which focused on a project's stage of development, with a principles-based "probable-to-complete" recognition threshold. The ASU is effective for interim and annual periods beginning after December 15, 2027, with early adoption permitted. The guidance may be applied on a prospective or retrospective basis. We are currently assessing the impact on our consolidated financial statements and related disclosures.
In December 2025, the FASB issued an ASU that establishes accounting guidance for government grants received by a business entity, including grants related to an asset and grants related to income. The ASU is effective for interim and annual periods beginning after December 15, 2028, with early adoption permitted. The guidance may be applied on a modified prospective, modified retrospective or retrospective basis. We are currently assessing the impact on our consolidated financial statements and related disclosures.
In May 2026, the FASB issued an ASU that establishes guidance for the recognition, measurement, presentation and disclosure of environmental credits and environmental credit obligations. The ASU is effective for annual periods beginning after December 15, 2027, with early adoption permitted. The guidance must be applied retrospectively. We are currently assessing the impact on our consolidated financial statements and related disclosures.
7 | | |||||||
Subsequent Event
On October 29, 2026, we announced that we signed an agreement to acquire a majority stake in Undercover Chocolate Company, Inc. and Undercover Ingredients LLC ("Undercover Snacks"), U.S.-based affiliated companies making and selling snacks made from simple, better-for-you ingredients. The transaction is subject to customary closing conditions, including regulatory approval, and is expected to close in the first quarter of 2027.
Note 2. Inventories
Inventories consisted of the following:
| As of September 30, 2026 | As of December 31, 2025 | ||||||||||
| (in millions) | |||||||||||
| Raw materials | $ | $ | |||||||||
| Finished product | |||||||||||
Inventories | $ | $ | |||||||||
Note 3. Property, Plant and Equipment
Property, plant and equipment consisted of the following:
| As of September 30, 2026 | As of December 31, 2025 | ||||||||||
| (in millions) | |||||||||||
| Land and land improvements | $ | $ | |||||||||
| Buildings and building improvements | |||||||||||
| Machinery and equipment | |||||||||||
| Construction in progress | |||||||||||
| Accumulated depreciation | ( | ( | |||||||||
| Property, plant and equipment, net | $ | $ | |||||||||
For the nine months ended September 30, 2026, capital expenditures of $947 million excluded $355 million of accrued capital expenditures remaining unpaid at September 30, 2026 and included payment for the $481 million of capital expenditures that were accrued and unpaid at December 31, 2025. For the nine months ended September 30, 2025, capital expenditures of $881 million excluded $408 million of accrued capital expenditures remaining unpaid at September 30, 2025 and included payment for the $458 million of capital expenditures that were accrued and unpaid at December 31, 2024.
8 | | |||||||
Note 4. Goodwill and Intangible Assets
Goodwill
Changes in goodwill consisted of:
| Latin America | AMEA | Europe | North America | Total | |||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
| Balance at December 31, 2025 | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| Currency | ( | ( | ( | ||||||||||||||||||||||||||
| Balance at September 30, 2026 | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Intangible Assets
Intangible assets consisted of the following:
| As of September 30, 2026 | As of December 31, 2025 | ||||||||||||||||||||||||||||||||||
| Gross carrying amount | Accumulated amortization | Net carrying amount | Gross carrying amount | Accumulated amortization | Net carrying amount | ||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||
Indefinite-life intangible assets | $ | $ | — | $ | $ | $ | — | $ | |||||||||||||||||||||||||||
| Definite-life intangible assets | ( | ( | |||||||||||||||||||||||||||||||||
Total | $ | $ | ( | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||
Indefinite-life intangible assets consist principally of brand names purchased through our acquisitions of Nabisco Holdings Corp., the global LU biscuit business of Groupe Danone S.A., Cadbury Limited and Clif Bar. Definite-life intangible assets consist primarily of customer-related intangibles, process technology and trademarks. The weighted-average amortization period for our definite-life intangible assets is approximately 16 years, which is primarily driven by recently acquired customer-related intangibles.
Amortization expense for definite-life intangible assets was $26 million and $32 million for the three months ended September 30, 2026 and 2025, respectively, and $79 million and $107 million for the nine months ended September 30, 2026 and 2025, respectively.
Impairment Assessments
We test our reporting units and indefinite-life intangible assets for impairment annually as of July 1, or more frequently if events or circumstances indicate it is more likely than not that the fair value of a reporting unit or brand is less than its carrying amount.
There were no
In the third quarters of 2026 and 2025, we recognized impairment charges of $64 million and $33 million, respectively, to reduce the carrying amounts of certain of our brands to their estimated fair values. Those charges are reported within Asset impairments and exit costs in the condensed consolidated statements of earnings. The 2026 impairments relate to two brands in the biscuits & baked snacks category in the Europe segment and one brand in the biscuits & baked snacks category in the North America segment. The 2025 impairments related to two brands in the biscuits & baked snacks category in the Europe segment, one brand in the biscuits & baked snacks category in the Asia, Middle East and Africa ("AMEA") segment and one brand in the gum & candy category in the Latin America segment. The impairments were driven by lower expectations of future business performance to reflect current or expected market conditions in select markets as well as changes in management strategy.
The fair values of our brand intangibles were determined using several valuation methods, including the relief from royalty method, the excess earnings method and the excess margin method. Inputs to those valuation methods include our most recent forecasts of revenue and earnings, as well as estimates of royalty rates and discount rates. Fair value measurements of brand intangible assets are classified as Level 3 in the fair value hierarchy because they involve significant unobservable inputs.
9 | | |||||||
Note 5. Equity Method Investment Transactions
During the fourth quarter of 2024, we sold our remaining 85.9 million shares in JDE Peet’s N.V. (“JDEP”) to JAB Holding Company (“JAB”) and fully exited the investment. On August 24, 2025, Keurig Dr Pepper Inc. (“KDP”) and JDEP entered into a definitive agreement under which KDP would acquire JDEP. As a result of that definitive agreement, we became entitled to a cash payment of €145 million ($169 million) from JAB related to our previously held equity investment in JDEP that we received in the third quarter of 2025. The related gain is reported within gain/(loss) on equity method investment transactions in the condensed consolidated statements of earnings for the three and nine months ended September 30, 2025.
Note 6. Debt and Borrowing Arrangements
Short-Term Borrowings
Our short-term borrowings and related weighted-average interest rates consisted of:
| As of September 30, 2026 | As of December 31, 2025 | ||||||||||||||||||||||
| Amount Outstanding | Weighted- Average Rate | Amount Outstanding | Weighted- Average Rate | ||||||||||||||||||||
| (in millions, except percentages) | |||||||||||||||||||||||
| Commercial paper | $ | % | $ | % | |||||||||||||||||||
| Bank loans | % | % | |||||||||||||||||||||
| Total short-term borrowings | $ | $ | |||||||||||||||||||||
Our uncommitted and committed credit facilities available include:
| As of September 30, 2026 | As of December 31, 2025 | ||||||||||||||||||||||
| Facility Amount | Borrowed Amount | Facility Amount | Borrowed Amount | ||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
| Uncommitted credit facilities | $ | $ | $ | $ | |||||||||||||||||||
Credit facilities (1): | |||||||||||||||||||||||
| February 18, 2026 | |||||||||||||||||||||||
| February 17, 2027 | |||||||||||||||||||||||
| February 19, 2030 | |||||||||||||||||||||||
(1)On February 18, 2026, our $1.5 billion 364-day senior unsecured revolving credit agreement dated as of February 19, 2025 expired and we entered into a $1.5 billion 364-day senior unsecured revolving credit agreement that will expire on February 17, 2027.
We maintain senior unsecured revolving credit facilities for general corporate purposes, including working capital needs, and to support our commercial paper program. The revolving credit agreements include a covenant that we maintain a minimum shareholders' equity of at least $25.0 billion, excluding accumulated other comprehensive earnings/(losses), the cumulative effects of any changes in accounting principles and earnings/(losses) recognized in connection with any mark-to-market accounting for pensions and other retirement plans. At September 30, 2026, we complied with this covenant. The revolving credit facility also contains customary representations, covenants and events of default. There are no credit rating triggers, provisions or other financial covenants that could require us to post collateral as security.
10 | | |||||||
Debt Repayments
During the nine months ended September 30, 2026, we repaid the following notes (in millions):
| Interest Rate | Maturity Date | Amount | USD Equivalent | |||||||||||||||||
| February 2026 | $ | $ | ||||||||||||||||||
September 2026 (1) | € | $ | ||||||||||||||||||
September 2026 (1) | $ | $ | ||||||||||||||||||
(1)Repaid by Mondelez International Holdings Netherlands B.V., a wholly owned Dutch subsidiary of Mondelēz International, Inc.
During the nine months ended September 30, 2025, we repaid the following notes (in millions):
| Interest Rate | Maturity Date | Amount | USD Equivalent | |||||||||||||||||
| March 2025 | C$ | $ | ||||||||||||||||||
| May 2025 | $ | $ | ||||||||||||||||||
September 2025 (1) | $ | $ | ||||||||||||||||||
(1)Repaid by Mondelez International Holdings Netherlands B.V., a wholly owned Dutch subsidiary of Mondelēz International, Inc.
Debt Issuances
During the nine months ended September 30, 2026, we issued the following notes (in millions):
| Issuance Date | Interest Rate | Maturity Date | Principal Amount | Principal Amount USD Equivalent | ||||||||||||||||||||||
| April 2026 | April 2029 | Fr. | $ | |||||||||||||||||||||||
| April 2026 | November 2032 | Fr. | $ | |||||||||||||||||||||||
| April 2026 | April 2036 | Fr. | $ | |||||||||||||||||||||||
During the nine months ended September 30, 2025, we issued the following notes (in millions):
Issuance Date | Interest Rate | Maturity Date | Principal Amount | Principal Amount USD Equivalent | ||||||||||||||||||||||
| May 2025 | May 2028 | $ | $ | |||||||||||||||||||||||
| May 2025 | May 2030 | $ | $ | |||||||||||||||||||||||
| May 2025 | May 2035 | $ | $ | |||||||||||||||||||||||
Fair Value of Our Debt
The fair value of our short-term borrowings reflects current market interest rates and approximates the amounts we have recorded on our condensed consolidated balance sheets. The fair value of our long-term debt was primarily determined using quoted prices in active markets (Level 1 valuation data).
| As of September 30, 2026 | As of December 31, 2025 | ||||||||||
| (in millions) | |||||||||||
| Fair Value | $ | $ | |||||||||
| Carrying Value | $ | $ | |||||||||
11 | | |||||||
Interest and Other Expense, net
Interest and other expense, net consisted of:
| For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
Interest expense | $ | $ | $ | $ | |||||||||||||||||||
Other income, net | ( | ( | ( | ( | |||||||||||||||||||
| Interest and other expense, net | $ | $ | $ | $ | |||||||||||||||||||
Other income, net includes amortization of amounts excluded from our assessment of hedge effectiveness related to our net investment hedge derivative contracts, foreign currency transaction gains and losses on certain foreign currency denominated assets and liabilities, gains and losses on certain foreign currency and interest rate derivative contracts, interest income and other non-operating items. Refer to Note 7, Financial Instruments for additional information about our hedging activities.
Note 7. Financial Instruments
Derivatives and Hedging Activities
Derivative instruments and corresponding hedge type were recorded at fair value in the condensed consolidated balance sheets as follows:
| As of September 30, 2026 | As of December 31, 2025 | ||||||||||||||||||||||||||||
| Asset Derivatives | Liability Derivatives | Asset Derivatives | Liability Derivatives | ||||||||||||||||||||||||||
Type of Hedge (1) | (in millions) | ||||||||||||||||||||||||||||
Derivatives designated as accounting hedges (2): | |||||||||||||||||||||||||||||
Foreign currency contracts | NIH | $ | $ | $ | $ | ||||||||||||||||||||||||
Interest rate contracts | CF/FV | ||||||||||||||||||||||||||||
Cross-currency swap contracts | CF/NIH | ||||||||||||||||||||||||||||
| $ | $ | $ | $ | ||||||||||||||||||||||||||
| Derivatives not designated as accounting hedges: | |||||||||||||||||||||||||||||
Foreign currency contracts | $ | $ | $ | $ | |||||||||||||||||||||||||
| Commodity contracts | |||||||||||||||||||||||||||||
| Interest rate contracts | |||||||||||||||||||||||||||||
| Total fair value | $ | $ | $ | $ | |||||||||||||||||||||||||
(1)Derivative contracts designated as either cash flow ("CF"), fair value ("FV") or net investment hedging ("NIH") instruments.
(2)We designate some of our non-U.S. dollar denominated debt to hedge a portion of our net investments in our non-U.S. operations. This debt is not reflected in the table above, but is included in long-term debt discussed in Note 6, Debt and Borrowing Arrangements. Non-U.S. dollar denominated debt designated as net investment hedges is also disclosed in the Notional Amounts of Derivatives and Other Hedging Instruments table and the Hedges of Net Investments in International Operations section appearing later in this footnote.
We recorded the fair value of our derivative instruments in the condensed consolidated balance sheets as follows:
| As of September 30, 2026 | As of December 31, 2025 | |||||||||||||
| (in millions) | ||||||||||||||
| Other current assets | $ | $ | ||||||||||||
Other assets | ||||||||||||||
Other current liabilities | ||||||||||||||
Other liabilities | ||||||||||||||
12 | | |||||||
Certain exchange-traded commodity contracts require us to receive from or pay to a broker an amount of cash related to the daily fluctuation in value of the futures contract. Such cash collateral held or placed is known as variation margin and is recorded as other current assets and liabilities. The net (liability)/asset variation margin balances for futures contracts were $(145 ) million and $364 million as of September 30, 2026 and December 31, 2025, respectively. These balances are excluded from the table above. Our over-the-counter ("OTC") derivative transactions are governed by International Swaps and Derivatives Association agreements and other standard industry contracts. Under these agreements, we do not post nor require collateral from our counterparties. The majority of our derivative contracts do not have a legal right of set-off. We manage the credit risk in connection with these and all our derivatives by entering into transactions with counterparties with investment grade credit ratings, limiting the amount of exposure with each counterparty and monitoring the financial condition of our counterparties.
Fair Value Measurements of Derivative Instruments
Level 1 fair value measurements use quoted prices in active markets for identical assets or liabilities. Level 1 financial assets and liabilities consist of exchange-traded commodity futures and listed options. The fair value of these instruments is determined based on quoted market prices on commodity exchanges.
Level 2 fair value measurements use quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets with insufficient volume or infrequent transactions, or model-based valuations in which significant inputs are observable in the market. Level 2 financial assets and liabilities consist primarily of OTC foreign currency forwards, options and swaps; OTC commodity options; interest rate swaps; and cross-currency swaps. Commodity derivatives are valued using an income approach based on the observable market commodity index prices less the contract rate multiplied by the notional amount or based on pricing models that rely on market observable inputs such as commodity prices. Our calculation of the fair value of foreign currency contracts, interest rate swaps, and cross-currency swaps is derived from a discounted cash flow model based on the terms of the contract and the observable market inputs such as interest rate curves and forward rates. Our calculation of the fair value of financial instruments takes into consideration the risk of nonperformance, including counterparty credit risk.
Level 3 fair value measurements use significant unobservable inputs and include the use of judgment by management about the assumptions market participants would use in pricing the asset or liability.
The fair value measurements (asset/(liability)) of our derivative instruments were classified in the fair value hierarchy as follows:
| As of September 30, 2026 | |||||||||||||||||||||||
| Total Fair Value of Net Asset/(Liability) | Quoted Prices in Active Markets for Identical Assets/(Liabilities) (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
Foreign currency contracts | $ | $ | $ | $ | |||||||||||||||||||
| Commodity contracts | |||||||||||||||||||||||
| Interest rate contracts | ( | ( | |||||||||||||||||||||
Cross-currency swap contracts | ( | ( | |||||||||||||||||||||
| Total derivatives | $ | $ | $ | $ | |||||||||||||||||||
13 | | |||||||
| As of December 31, 2025 | |||||||||||||||||||||||
| Total Fair Value of Net Asset/(Liability) | Quoted Prices in Active Markets for Identical Assets/(Liabilities) (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
Foreign currency contracts | $ | ( | $ | $ | ( | $ | |||||||||||||||||
| Commodity contracts | ( | ( | ( | ||||||||||||||||||||
| Interest rate contracts | ( | ( | |||||||||||||||||||||
Cross-currency swap contracts | ( | ( | |||||||||||||||||||||
| Total derivatives | $ | ( | $ | ( | $ | ( | $ | ||||||||||||||||
Notional Amounts of Derivatives and Other Hedging Instruments
The gross notional values of our derivative instruments, as well as non-U.S. dollar debt designated as net investment hedging instruments, were:
| Notional Amount | |||||||||||
| As of September 30, 2026 | As of December 31, 2025 | ||||||||||
| (in millions) | |||||||||||
Foreign currency contracts | $ | $ | |||||||||
Commodity contracts | |||||||||||
| Interest rate contracts | |||||||||||
Cross-currency swap contracts | |||||||||||
Non-U.S. dollar debt designated as net investment hedges: | |||||||||||
| Euro notes | |||||||||||
| Canadian dollar notes | |||||||||||
Cash Flow Hedges
Our derivative instruments designated as cash flow hedges include interest rate swaps and cross-currency swaps. As of September 30, 2026, the aggregate notional value of those derivatives was $1.8 billion.
Cash flow hedge activity, net of taxes, is recorded within accumulated other comprehensive earnings/(losses) and reclassified to earnings in the periods in which the hedged item affects earnings. Refer to Note 11, Accumulated Other Comprehensive Earnings/(Losses) for additional information on current period activity. Based on current market conditions, $9 million of losses, net of taxes, included in accumulated other comprehensive earnings/(losses) from cash flow hedges as of September 30, 2026 are expected to be recognized into earnings during the next 12 months.
As of September 30, 2026, our longest dated cash flow hedge was a cross-currency swap that hedges currency exchange risk on certain debt denominated in a different currency than the functional currency of the borrowing entity over the next 18 years, 6 months .
14 | | |||||||
Fair Value Hedges
Our derivative instruments designated as fair value hedges include interest rate swaps. As of September 30, 2026, the aggregate notional value of those derivatives was $1.6 billion.
Fair value hedge pre-tax gains/(losses) recorded within interest and other expense, net were:
| For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
Interest rate contracts | |||||||||||||||||||||||
Hedged items | $ | $ | $ | $ | |||||||||||||||||||
Hedging derivatives | ( | ( | |||||||||||||||||||||
Net impact of fair value hedges | $ | $ | $ | $ | |||||||||||||||||||
Amounts recorded in our condensed consolidated balance sheets related to hedged items in fair value hedging relationships were:
| Carrying Amount of the Hedged Items | Cumulative Fair Value Hedging Adjustments | ||||||||||||||||||||||
| As of September 30, 2026 | As of December 31, 2025 | As of September 30, 2026 | As of December 31, 2025 | ||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
| $ | $ | $ | ( | $ | |||||||||||||||||||
Hedges of Net Investments in International Operations
Derivative contracts designated as net investment hedges
Our derivative instruments designated as net investment hedges include foreign currency contracts and cross-currency swaps. As of September 30, 2026, the aggregate notional value of those derivatives was $9.7 billion.
Net investment hedge derivative contract pre-tax impacts on other comprehensive earnings/(losses) and net earnings were:
| For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||||||||
(Loss)/gain on NIH contracts (1) | |||||||||||||||||||||||||||||||||||
Foreign currency contracts | $ | ( | $ | $ | $ | ( | |||||||||||||||||||||||||||||
Cross-currency swap contracts | ( | ( | |||||||||||||||||||||||||||||||||
Total | $ | ( | $ | $ | $ | ( | |||||||||||||||||||||||||||||
Amounts excluded from the assessment of hedge effectiveness (2) | |||||||||||||||||||||||||||||||||||
Foreign currency contracts | $ | $ | $ | $ | |||||||||||||||||||||||||||||||
Cross-currency swap contracts | |||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | |||||||||||||||||||||||||||||||
(1)Amounts recorded for unsettled and settled NIH derivative contracts are recorded within the cumulative translation adjustment section of other comprehensive earnings/(losses).
(2)We assess the effectiveness of NIH relationships based on spot rates and amortize the initial value attributable to the excluded component to earnings over the life of the hedging instrument within interest and other expense, net.
15 | | |||||||
Non-U.S. dollar debt designated as net investment hedges
Pre-tax gains/(losses) related to non-U.S. dollar debt designated as hedges of net investments in international operations, which are recorded within the cumulative translation adjustment section of other comprehensive earnings/(losses), were:
| For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||||||||
| Euro notes | $ | $ | $ | $ | ( | ||||||||||||||||||||||||||||||
| Swiss franc notes | ( | ||||||||||||||||||||||||||||||||||
Canadian dollar notes | ( | ||||||||||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | ( | ||||||||||||||||||||||||||||||
Derivatives Not Designated as Accounting Hedges
Pre-tax gains/(losses) recorded in net earnings for economic hedges were:
| For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||||||||
Foreign currency contracts: | |||||||||||||||||||||||||||||||||||
Cost of sales | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||||||||||||||
Selling, general and administrative expenses | ( | ( | ( | ||||||||||||||||||||||||||||||||
Interest and other expense, net | ( | ||||||||||||||||||||||||||||||||||
Commodity contracts - Cost of sales | ( | ( | |||||||||||||||||||||||||||||||||
Interest rate contracts - Interest and other expense, net | ( | ||||||||||||||||||||||||||||||||||
| Total | $ | $ | ( | $ | $ | ( | |||||||||||||||||||||||||||||
16 | | |||||||
Fair Value of Contingent Consideration
Contingent consideration liabilities, which reflect earn-out arrangements from business combinations, are recorded at fair value each period, with changes in fair value reported in earnings. The fair values of our contingent consideration liabilities were $111 million and $149 million as of September 30, 2026 and December 31, 2025, respectively. Contingent consideration liabilities are primarily recorded in other liabilities in the condensed consolidated balance sheets and changes in their fair values are primarily recorded in selling, general and administrative expenses in the condensed consolidated statements of earnings.
The estimated fair values of our contingent consideration liabilities were primarily determined using Monte Carlo simulations. Significant assumptions used in assessing the fair value of the liabilities include financial projections for net revenue, gross profit and EBITDA, as well as discount and volatility rates. Fair value measurements of contingent consideration liabilities are classified as Level 3 in the fair value hierarchy because they use significant unobservable inputs.
Contingent consideration arrangements include an earn-out related to the acquisition of Clif Bar & Company (“Clif Bar”) in 2022. The possible payments under that arrangement range from zero to a maximum total of $2.4 billion, with higher payouts requiring the achievement of targets that generate rates of returns in excess of our base financial projections for the business.
The following is a summary of our contingent consideration liability activity:
| For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
| Liability at beginning of period | $ | $ | $ | $ | |||||||||||||||||||
Changes in fair value | ( | ( | ( | ||||||||||||||||||||
Currency | |||||||||||||||||||||||
| Liability at end of period | $ | $ | $ | $ | |||||||||||||||||||
17 | | |||||||
Note 8. Benefit Plans
Pension Plans
Components of Net Periodic Pension (Benefit)/Cost
Net periodic pension (benefit)/cost consisted of the following:
| U.S. Plans | Non-U.S. Plans | ||||||||||||||||||||||
| For the Three Months Ended September 30, | For the Three Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
| Service cost | $ | $ | $ | $ | |||||||||||||||||||
| Interest cost | |||||||||||||||||||||||
| Expected return on plan assets | ( | ( | ( | ( | |||||||||||||||||||
Amortization of net loss and prior service cost | |||||||||||||||||||||||
| Settlement losses | |||||||||||||||||||||||
Net periodic pension cost/(benefit) | $ | $ | ( | $ | ( | $ | |||||||||||||||||
| U.S. Plans | Non-U.S. Plans | ||||||||||||||||||||||
| For the Nine Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
| Service cost | $ | $ | $ | $ | |||||||||||||||||||
| Interest cost | |||||||||||||||||||||||
| Expected return on plan assets | ( | ( | ( | ( | |||||||||||||||||||
Amortization of net loss and prior service cost | |||||||||||||||||||||||
| Settlement (gains)/losses | ( | ||||||||||||||||||||||
Net periodic pension (benefit)/cost | $ | ( | $ | $ | ( | $ | |||||||||||||||||
Employer Contributions
During the nine months ended September 30, 2026, we contributed $3 million and $61 million to our U.S. and non-U.S. pension plans, respectively. We make contributions to our pension plans in accordance with local funding arrangements and statutory minimum funding requirements. Discretionary contributions are made to the extent that they are tax deductible and do not generate an excise tax liability.
As of September 30, 2026, we plan to make no further contributions to our U.S. plans and further contributions of approximately $16 million to our non-U.S. plans for the remainder of 2026. However, our actual contributions may be different due to many factors, including changes in tax and other benefit laws, significant differences between expected and actual pension asset performance or changes in interest rates.
Mondelēz Global LLC Retirement Plan Settlement
During 2024, we entered into agreements with two third-party insurance companies to purchase buy-in annuity contracts to cover the liabilities associated with the Mondelēz Global LLC Retirement Plan ("MDLZ Global Plan"), the pension plan for U.S. salaried employees. The agreements provided us with the option to elect a buy-out conversion, at which time full responsibility of the MDLZ Global Plan obligations would transfer to the insurance companies. During the second quarter of 2025, we elected the buy-out conversion and recognized a non-cash pre-tax settlement loss of $282 million as a component of our net periodic pension cost.
Mondelez Canada Inc. - Trusteed Hourly Retirement Plan and Retirement Plan Settlement
During the third quarter of 2025, we entered into an agreement with a third-party insurance company to buy-out the retiree participants' obligations of the Mondelez Canada Inc. Trusteed Hourly Retirement Plan and Mondelez Canada Inc. Retirement Plan. The obligations were transferred to the insurance company and we recognized a non-cash pre-tax settlement loss of $54 million as a component of our net periodic pension cost.
18 | | |||||||
Multiemployer Pension Plans
On July 11, 2019, we received a withdrawal liability assessment from the Bakery and Confectionery Union and the Industry International Pension Fund requiring pro-rata monthly payments over 20 years and we recorded a discounted liability of $491 million at that time. In connection with the discounted long-term liability, we recorded accreted interest of $2 6 million and $7 million for the nine months ended September 30, 2026 and 2025, respectively, within interest and other expense, net in the condensed consolidated statements of earnings. As of September 30, 2026, the remaining discounted withdrawal liability was $281 million, with $17 million recorded in other current liabilities and $264 million recorded in other liabilities in the condensed consolidated balance sheets.
Postretirement and Postemployment Benefit Plans
Note 9. Commitments and Contingencies
Legal Proceedings
We routinely are involved in various pending or threatened legal proceedings, claims, disputes, regulatory matters and governmental inquiries, inspections or investigations arising in the ordinary course of or incidental to our business, including those noted below in this section. We record provisions in the consolidated financial statements for pending legal matters when we determine that an unfavorable outcome is probable, and the amount of the loss can be reasonably estimated. For matters we have not provided for that are reasonably possible to result in an unfavorable outcome, management is unable to estimate the possible loss or range of loss or such amounts have been determined to be immaterial. At present we believe that the ultimate outcome of these legal proceedings and regulatory and governmental matters, individually and in the aggregate, will not materially harm our financial position, results of operations or cash flows. However, legal proceedings and regulatory and governmental matters are subject to inherent uncertainties, and unfavorable rulings or other events could occur. Unfavorable resolutions could involve substantial fines, civil or criminal penalties, and other expenditures. In addition, in matters for which conduct remedies are sought, unfavorable resolutions could include an injunction or other order prohibiting us from selling one or more products at all or in particular ways, precluding particular business practices or requiring other equitable remedies. An unfavorable outcome might result in a material adverse impact on our business, results of operations or financial position.
On April 1, 2015, the U.S. Commodity Futures Trading Commission ("CFTC") filed a complaint against Kraft Foods Group and Mondelēz Global LLC (“Mondelēz Global”) in the U.S. District Court for the Northern District of Illinois (the "District Court") related to the trading of December 2011 wheat futures contracts that occurred prior to the spin-off of Kraft Foods Group. The complaint alleged that Mondelēz Global: (1) manipulated or attempted to manipulate the wheat markets during the fall of 2011; (2) violated position limit levels for wheat futures; and (3) engaged in non-competitive trades. On May 13, 2022, the District Court approved a settlement agreement between the CFTC and Mondelēz Global. The terms of the settlement, which are available in the District Court’s docket, had an immaterial impact on our financial position, results of operations and cash flows and did not include an admission by Mondelēz Global. Several class action complaints also were filed against Mondelēz Global in the District Court by investors who copied and expanded upon the CFTC allegations in a series of private claims for monetary damages as well as injunctive, declaratory, and other unspecified relief. In June 2015, these suits were consolidated in the United States District Court for the Northern District of Illinois as case number 15-cv-2937, Harry Ploss et al. v. Kraft Foods Group, Inc. and Mondelēz Global LLC. On January 3, 2020, the District Court granted plaintiffs' request to certify a class. On September 30, 2026, the District Court decertified the class, dismissed five of the eight named plaintiffs for lack of standing, and granted summary judgment to defendants on plaintiffs' Commodity Exchange Act claims as time barred. The three remaining plaintiffs' claims under the Sherman Act and for unjust enrichment, on which the District Court denied summary judgment, remain pending. On October 7, 2026, the District Court asked parties to confer on dates for a status hearing. On October 14, 2026, plaintiffs sought appellate review of the decertification ruling. It is not possible to predict the outcome of these matters even as narrowed by the recent rulings; however, based on our Separation and Distribution Agreement with Kraft Foods Group dated as of September 27, 2012, we expect to bear any monetary penalties or other payments in connection with the class action.
19 | | |||||||
Third-Party Guarantees
We enter into third-party guarantees primarily to cover long-term obligations of certain vendors. As part of these transactions, we guarantee that third parties will make contractual payments or achieve performance measures. As of September 30, 2026 and December 31, 2025, we had no material third-party guarantees recorded on our condensed consolidated balance sheets.
Tax Matters
We are a party to various tax matter proceedings incidental to our business. These proceedings are subject to inherent uncertainties, and unfavorable outcomes could subject us to additional tax liabilities and could materially adversely impact our business, results of operations or financial position.
Note 10. Shareholders' Equity
Stock Award Activity
Stock Options
Stock option activity is reflected below:
| Shares Subject to Option | Weighted- Average Exercise Price Per Share | Average Remaining Contractual Term | Aggregate Intrinsic Value | ||||||||||||||||||||
| Balance at January 1, 2026 | $ | $ | million | ||||||||||||||||||||
Granted | |||||||||||||||||||||||
Exercised (1) | ( | $ | million | ||||||||||||||||||||
Canceled | ( | ||||||||||||||||||||||
| Balance at September 30, 2026 | $ | million | |||||||||||||||||||||
(1)Cash received from options exercised was $27 million and $80 million in the three and nine months ended September 30, 2026, respectively. The excess income tax benefit from stock option exercises was $1 million and $4 million in the three and nine months ended September 30, 2026, respectively.
Performance Share Units ("PSU") and Deferred Stock Units ("DSU")
PSU and DSU activity is reflected below:
| Number of Shares | Weighted-Average Grant Date Fair Value Per Share (3) | Weighted-Average Aggregate Grant Date Fair Value | |||||||||||||||
| Balance at January 1, 2026 | $ | ||||||||||||||||
Units granted: | |||||||||||||||||
Performance share units (1) | |||||||||||||||||
Deferred stock units | |||||||||||||||||
Total units granted (1) | $ | million | |||||||||||||||
Vested (1) (2) | ( | $ | million | ||||||||||||||
Forfeited | ( | ||||||||||||||||
| Balance at September 30, 2026 | |||||||||||||||||
(1)Includes incremental PSUs issued over target.
(2)The income tax shortfall upon vesting of PSUs and DSUs was zero 2
20 | | |||||||
Share Repurchase Program
Effective January 1, 2025, our Board of Directors replaced our prior share repurchase program by approving a program authorizing the repurchase of up to $9.0 billion of our Common Stock through December 31, 2027. Repurchases under the program are determined by management and are wholly discretionary.
During the nine months ended September 30, 2026, we repurchased approximately 14 million shares of Common Stock at an average cost of $60.60 per share, or an aggregate cost of approximately $874 million, all of which was paid during the period except for approximately $50 million settled in October 2026. All share repurchases were funded through available cash and commercial paper issuances. As of September 30, 2026, we have approximately $5.8 billion in remaining share repurchase capacity.
21 | | |||||||
Note 11. Accumulated Other Comprehensive Earnings/(Losses)
The following table summarizes the changes in accumulated balances of each component of accumulated other comprehensive earnings/(losses) attributable to Mondelēz International. Amounts reclassified from accumulated other comprehensive earnings/(losses) to net earnings (net of tax) were net losses of $(39 ) million and $(60 ) million in the third quarter of 2026 and 2025, respectively, and $(77 ) million and $(391 ) million in the first nine months of 2026 and 2025, respectively.
| For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
| Currency Translation Adjustments: | |||||||||||||||||||||||
| Balance at beginning of period | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
| Currency translation adjustments | ( | ( | ( | ||||||||||||||||||||
| Tax effect | ( | ||||||||||||||||||||||
| Other comprehensive earnings/(losses) | ( | ( | ( | ||||||||||||||||||||
| less: other comprehensive (earnings)/loss attributable to noncontrolling interests | ( | ||||||||||||||||||||||
| Balance at end of period | ( | ( | ( | ( | |||||||||||||||||||
| Pension and Other Benefit Plans: | |||||||||||||||||||||||
| Balance at beginning of period | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
| Net actuarial gain/(loss) arising during period | ( | ||||||||||||||||||||||
| Tax effect on net actuarial gain/(loss) | ( | ||||||||||||||||||||||
| Losses/(gains) reclassified into net earnings: | |||||||||||||||||||||||
Amortization of net loss and prior service (1) | |||||||||||||||||||||||
Settlement losses/(gains) (1) | ( | ||||||||||||||||||||||
Tax expense/(benefit) on reclassifications (3) | ( | ( | ( | ( | |||||||||||||||||||
| Currency impact | ( | ||||||||||||||||||||||
| Other comprehensive earnings/(losses) | |||||||||||||||||||||||
| Balance at end of period | ( | ( | ( | ( | |||||||||||||||||||
| Derivative Cash Flow Hedges: | |||||||||||||||||||||||
| Balance at beginning of period | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
| Interest rate contracts gains/(losses) | ( | ( | ( | ( | |||||||||||||||||||
| Cross-currency swap contracts gains/(losses) | ( | ( | ( | ( | |||||||||||||||||||
| Other derivative gains/(losses) | ( | ( | ( | ||||||||||||||||||||
| Tax effect on net derivative gain/(loss) | |||||||||||||||||||||||
| Losses/(gains) reclassified into net earnings: | |||||||||||||||||||||||
Interest rate contracts (2) | |||||||||||||||||||||||
Cross-currency swap contracts (2) | |||||||||||||||||||||||
Tax expense/(benefit) on reclassifications (3) | ( | ( | ( | ||||||||||||||||||||
| Currency impact | ( | ||||||||||||||||||||||
| Other comprehensive earnings/(losses) | ( | ||||||||||||||||||||||
| Balance at end of period | ( | ( | ( | ( | |||||||||||||||||||
| Accumulated other comprehensive losses attributable to Mondelēz International: | |||||||||||||||||||||||
| Balance at beginning of period | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
| Total other comprehensive earnings/(losses) | ( | ( | |||||||||||||||||||||
| less: other comprehensive (earnings)/loss attributable to noncontrolling interests | ( | ||||||||||||||||||||||
| Other comprehensive earnings/(losses) attributable to Mondelēz International | ( | ||||||||||||||||||||||
| Balance at end of period | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
(1)These reclassified losses/(gains) are included in net periodic benefit costs disclosed in Note 8, Benefit Plans.
(2)These reclassified gains or losses are recorded within interest and other expense, net.
(3)Taxes reclassified to earnings are recorded within the provision for income taxes.
22 | | |||||||
Note 12. Restructuring
Beginning in the fourth quarter of 2025, we initiated new restructuring actions to reduce our cost structure and streamline our operations. Those restructuring actions, which were primarily undertaken by our Europe segment, included initiatives to optimize our supply chain network and reduce our overhead costs. We recorded restructuring charges related to those actions of $56 million and $115 million in the three and nine months ended September 30, 2026, respectively, which are classified within asset impairment and exit costs.
The activity for the liabilities related to these restructuring actions for the nine months ended September 30, 2026 was:
| Severance and related costs | Asset write-downs | Total | |||||||||||||||
| (in millions) | |||||||||||||||||
Liability balance, December 31, 2025 | $ | $ | $ | ||||||||||||||
| Charges | |||||||||||||||||
| Payments | ( | ( | |||||||||||||||
| Non-cash items | ( | ( | |||||||||||||||
| Currency | ( | ( | |||||||||||||||
Liability balance, September 30, 2026 | $ | $ | $ | ||||||||||||||
Note 13. Income Taxes
Our effective tax rate was 24.6 % for the third quarter of 2026 as compared to 19.7 % in the third quarter of 2025. The higher current quarter effective tax rate was driven by prior year tax benefits that did not recur in the current period, including benefits related to the provision for final tax return filings and the tax treatment of certain foreign pension assets. These items were partially offset by current period tax benefits from a legal entity reorganization and a more favorable jurisdictional mix of earnings, including mark-to-market gains and losses on commodity and foreign currency derivatives.
Our effective tax rate for the nine months ended September 30, 2026 was 23.1 % as compared to 24.9 % for the nine months ended September 30, 2025. The lower year-to-date effective tax rate was driven by current period tax benefits from legal entity reorganizations, an amended tax return filing in the U.S., and a more favorable jurisdictional mix of earnings, including mark-to-market gains and losses on commodity and foreign currency derivatives. These items were partially offset by prior year tax benefits that did not recur in the current period, including benefits related to the provision for final tax return filings, the tax treatment of certain foreign pension assets, and the release of liabilities for uncertain tax positions due to audit developments and statute of limitation expirations.
23 | | |||||||
Note 14. Earnings per Share
Basic and diluted earnings per share (EPS) were calculated as follows:
| For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| (in millions, except per share data) | |||||||||||||||||||||||
| Net earnings | $ | $ | $ | $ | |||||||||||||||||||
less: Noncontrolling interest earnings | ( | ( | ( | ( | |||||||||||||||||||
| Net earnings attributable to Mondelēz International | $ | $ | $ | $ | |||||||||||||||||||
| Weighted-average shares for basic EPS | |||||||||||||||||||||||
plus: Dilutive effect of outstanding stock awards | |||||||||||||||||||||||
| Weighted-average shares for diluted EPS | |||||||||||||||||||||||
Basic earnings per share attributable to Mondelēz International | $ | $ | $ | $ | |||||||||||||||||||
Diluted earnings per share attributable to Mondelēz International | $ | $ | $ | $ | |||||||||||||||||||
We exclude antidilutive Mondelēz International share-based payment awards from our calculation of weighted-average shares for diluted EPS. We excluded antidilutive stock options, deferred stock units and performance share units of 9.8 million and 8.1 million for the three months ended September 30, 2026 and 2025, respectively, and 9.5 million and 4.0 million for the nine months ended September 30, 2026 and 2025, respectively.
Note 15. Segment Reporting
We manufacture and market primarily snack food products, including chocolate, biscuits and baked snacks, as well as gum & candy, meals and beverages. We manage our global business and report operating results through geographic units. We manage our operations by region to leverage regional operating scale, manage different and changing business environments more effectively and pursue growth opportunities as they arise across our key markets. Our regional management teams have responsibility for the business, product categories and financial results in the regions.
Our operations and management structure are organized into four
• Latin America
• AMEA
• Europe
• North America
Our Chief Operating Decision Maker ("CODM") is our Chief Executive Officer. Our CODM uses segment operating income in the annual plan and forecasting process and considers actual versus plan variances in assessing the performance of the segments. The CODM also uses segment operating income as an input to the overall compensation measures for segment management under our incentive compensation plans. Segment operating income excludes certain mark-to-market impacts on commodity and foreign currency derivatives (which are primarily a component of cost of sales), general corporate expenses (which are a component of selling, general and administrative expenses), amortization of intangibles, gains and losses on divestitures and acquisition-related costs (which are a component of selling, general and administrative expenses) in all periods presented. We exclude these items from segment operating income in order to provide better transparency of our segment operating results. Furthermore, we centrally manage benefit plan non-service income and interest and other expense, net. Accordingly, we do not present these items by segment because they are excluded from the segment profitability measure that our CODM reviews. Additionally, assets for reportable segments are not disclosed as such information is not regularly reviewed by the Company's CODM.
24 | | |||||||
Our segment net revenue, significant segment expenses and operating income by reportable segment were as follows:
| Three Months Ended September 30, 2026 | |||||||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||
| Latin America | AMEA | Europe | North America | Total | |||||||||||||||||||||||||
Net revenues | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| Segment cost of sales | ( | ( | ( | ( | ( | ||||||||||||||||||||||||
Segment selling, general and administrative expenses (1) | ( | ( | ( | ( | ( | ||||||||||||||||||||||||
| Segment operating income | $ | $ | $ | $ | |||||||||||||||||||||||||
Mark-to-market gains from derivatives | |||||||||||||||||||||||||||||
| General corporate expenses | ( | ||||||||||||||||||||||||||||
| Amortization of intangible assets | ( | ||||||||||||||||||||||||||||
| Operating income | $ | ||||||||||||||||||||||||||||
| Three Months Ended September 30, 2025 | |||||||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||
| Latin America | AMEA | Europe | North America | Total | |||||||||||||||||||||||||
Net revenues | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| Segment cost of sales | ( | ( | ( | ( | ( | ||||||||||||||||||||||||
Segment selling, general and administrative expenses (1) | ( | ( | ( | ( | ( | ||||||||||||||||||||||||
| Segment operating income | $ | $ | $ | $ | |||||||||||||||||||||||||
Mark-to-market losses from derivatives | ( | ||||||||||||||||||||||||||||
| General corporate expenses | ( | ||||||||||||||||||||||||||||
| Amortization of intangible assets | ( | ||||||||||||||||||||||||||||
| Operating income | $ | ||||||||||||||||||||||||||||
| Nine Months Ended September 30, 2026 | |||||||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||
| Latin America | AMEA | Europe | North America | Total | |||||||||||||||||||||||||
Net revenues | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| Segment cost of sales | ( | ( | ( | ( | ( | ||||||||||||||||||||||||
Segment selling, general and administrative expenses (1) | ( | ( | ( | ( | ( | ||||||||||||||||||||||||
| Segment operating income | $ | $ | $ | $ | |||||||||||||||||||||||||
Mark-to-market gains from derivatives | |||||||||||||||||||||||||||||
| General corporate expenses | ( | ||||||||||||||||||||||||||||
| Amortization of intangible assets | ( | ||||||||||||||||||||||||||||
Gain on divestiture | |||||||||||||||||||||||||||||
| Operating income | $ | ||||||||||||||||||||||||||||
25 | | |||||||
| Nine Months Ended September 30, 2025 | |||||||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||
| Latin America | AMEA | Europe | North America | Total | |||||||||||||||||||||||||
Net revenues | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| Segment cost of sales | ( | ( | ( | ( | ( | ||||||||||||||||||||||||
Segment selling, general and administrative expenses (1) | ( | ( | ( | ( | ( | ||||||||||||||||||||||||
| Segment operating income | $ | $ | $ | $ | |||||||||||||||||||||||||
Mark-to-market losses from derivatives | ( | ||||||||||||||||||||||||||||
| General corporate expenses | ( | ||||||||||||||||||||||||||||
| Amortization of intangible assets | ( | ||||||||||||||||||||||||||||
| Operating income | $ | ||||||||||||||||||||||||||||
(1) SG&A for all reportable segments includes: Advertising & consumer expenses and overhead expenses.
Total depreciation expense and capital expenditures by segment, reflecting our current segment structure for all periods presented, were:
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
Depreciation expense (2): | |||||||||||||||||||||||
| Latin America | $ | $ | $ | $ | |||||||||||||||||||
| AMEA | |||||||||||||||||||||||
| Europe | |||||||||||||||||||||||
| North America | |||||||||||||||||||||||
Corporate | |||||||||||||||||||||||
| Total depreciation expense | $ | $ | $ | $ | |||||||||||||||||||
(2) Includes depreciation expense related to owned property, plant and equipment. Does not include amortization of intangible assets or leased assets. Refer to the condensed consolidated statements of cash flows for total depreciation and amortization expenses.
| Nine Months Ended September 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| (in millions) | |||||||||||
| Capital expenditures: | |||||||||||
| Latin America | $ | ( | $ | ( | |||||||
| AMEA | ( | ( | |||||||||
| Europe | ( | ( | |||||||||
| North America | ( | ( | |||||||||
Corporate | ( | ( | |||||||||
| Total capital expenditures | $ | ( | $ | ( | |||||||
26 | | |||||||
Disaggregation of Net Revenue
Net revenues by product category, reflecting our current segment structure for all periods presented, were:
| For the Three Months Ended September 30, 2026 | |||||||||||||||||||||||||||||
| Latin America | AMEA | Europe | North America | Total | |||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||
| Biscuits & Baked Snacks | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| Chocolate | |||||||||||||||||||||||||||||
| Gum & Candy | |||||||||||||||||||||||||||||
Beverages | |||||||||||||||||||||||||||||
Meals | |||||||||||||||||||||||||||||
| Total net revenues | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
For the Three Months Ended September 30, 2025 (3) | |||||||||||||||||||||||||||||
| Latin America | AMEA | Europe | North America | Total | |||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||
| Biscuits & Baked Snacks | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| Chocolate | |||||||||||||||||||||||||||||
| Gum & Candy | |||||||||||||||||||||||||||||
Beverages | |||||||||||||||||||||||||||||
Meals | |||||||||||||||||||||||||||||
Total net revenues | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| For the Nine Months Ended September 30, 2026 | |||||||||||||||||||||||||||||
| Latin America | AMEA | Europe | North America | Total | |||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||
| Biscuits & Baked Snacks | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| Chocolate | |||||||||||||||||||||||||||||
| Gum & Candy | |||||||||||||||||||||||||||||
| Beverages | |||||||||||||||||||||||||||||
Meals | |||||||||||||||||||||||||||||
Total net revenues | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
For the Nine Months Ended September 30, 2025 (3) | |||||||||||||||||||||||||||||
| Latin America | AMEA | Europe | North America | Total | |||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||
Biscuits & Baked Snacks | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
| Chocolate | |||||||||||||||||||||||||||||
| Gum & Candy | |||||||||||||||||||||||||||||
| Beverages | |||||||||||||||||||||||||||||
Meals | |||||||||||||||||||||||||||||
| Total net revenues | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
(3)During the first quarter of 2026, we realigned some of our products between our biscuits & baked snacks and chocolate categories in the North America segment; as such, we reclassified $11 30
27 | | |||||||
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
Overview of Business and Strategy
Our core business is making and selling chocolate, biscuits and baked snacks, with additional businesses in adjacent, locally relevant categories including gum & candy, meals and beverages around the world.
We aim to be the global leader in snacking. Our strategy is to drive long-term growth by focusing on four strategic priorities: accelerating consumer-centric growth, driving operational excellence, creating a winning growth culture and scaling sustainable snacking. We believe the successful implementation of our strategic priorities and leveraging of our attractive global footprint, strong core of iconic global and local brands, marketing, sales, distribution and cost excellence capabilities, and top talent with a growth mindset, will drive consistent top- and bottom-line growth, enabling us to continue to create long-term value for our shareholders.
Recent Developments and Significant Items
Macroeconomic environment
We continue to observe significant market and geopolitical uncertainty, inflationary pressures, supply constraints, trade and regulatory uncertainty and exchange rate volatility. In addition, consumer preferences continue to evolve in response to health and wellness trends. As a result, we experienced higher operating costs, including higher overall raw material, labor and energy costs. In particular, cocoa prices, while below prior year peak levels, are expected to remain elevated compared to historical levels in the near- and medium-term. Refer to Commodity Trends for additional information.
Our long-term outlook for future snacks revenue growth remains strong; however, we anticipate ongoing volatility. While we have responded to elevated raw material costs with price increases for certain of our products, the elasticity impacts from those pricing increases have adversely impacted consumer demand, particularly in Europe. We will continue to proactively manage our business in response to the evolving global economic environment, related uncertainty and business risks while also prioritizing and supporting our employees and customers. We continue to take steps to mitigate impacts to our supply chain, operations, technology and assets.
Trade and Regulatory Uncertainty
In many markets, including the United States, certain products or a portion of our products, including significant inputs, are imported from other jurisdictions. As the current geopolitical environment remains unpredictable, we continue to monitor and evaluate the impact of proposed and enacted tariffs, including proposed and enacted retaliatory tariffs or other trade restrictions. During the first quarter of 2026, the U.S. Supreme Court ruled that the tariffs imposed under the International Emergency Economic Powers Act ("IEEPA") were unlawful. Over the period in which these tariffs were in effect, we paid approximately $20 million of tariffs under the IEEPA, of which we have received refunds for approximately $14 million as of September 30, 2026. The timing and amount of any additional refunds of these tariffs remains uncertain at this stage. As such, we have not recorded any additional anticipated IEEPA tariff refunds as of September 30, 2026. Additionally, the U.S. administration has continued to impose new tariffs under other provisions in U.S. trade law and will likely continue to do so in the future. We are evaluating the potential impact of these developments as well as our ability to mitigate the impact, as they are expected to adversely impact our revenue and cost of goods sold. If additional tariff actions are implemented, we would expect those adverse impacts on our business operations and financial performance to be significant. For most products and materials imported to the United States from Mexico and Canada, we comply with the terms of the U.S.-Mexico-Canada Agreement and are therefore not subject to tariffs on most products and materials imported from those jurisdictions. However, the current trade environment continues to evolve rapidly and there can be no assurance that such products and materials will continue to be exempt. The implementation of additional protectionist trade measures, and any further retaliatory actions taken in response, could result in increased costs and pricing pressures, disrupt consumer spending patterns, and impact market stability and consumer confidence, any or all of which could adversely affect our operating results. For additional information, see the risk factors in our Annual Report on Form 10-K for the year ended December 31, 2025, including the risk entitled “We are subject to risks from changes to the trade policies and tariff and import/export regulations by the U.S. and/or other foreign governments.”
28 | | |||||||
War in Ukraine
The war in Ukraine continues to subject our business in the region to periodic disruptions, which may affect production, distribution and the safety of our employees. We continue to suspend new capital investments and advertising in Russia, but we have not ceased operations because we believe that we play a role in the continuity of the food supply. We continue to evaluate our ability to control our operating activities in Ukraine and Russia and comply with applicable international sanctions. We continue to consolidate both subsidiaries. During the third quarter of 2026, Ukraine generated 0.3% and Russia generated 3.1% of our consolidated net revenue.
Our operations in Russia are subject to risks, including the temporary or permanent loss of assets due to expropriation or further curtailment of our ability to conduct business operations in Russia, which could lead to the partial or full impairment of our Russian assets or deconsolidation of our Russian operations or the termination of and loss of revenue from those operations, based on actions taken by Russia, other parties or us. For additional information, see the risk factors in our Annual Report on Form 10-K for the year ended December 31, 2025, including the risk entitled “The war in Ukraine has impacted and could continue to impact our business operations, financial performance and results of operations.”
Developments in the Middle East
Escalation of military activity in the Middle East has affected, and may continue to affect, our operations in the region, including our manufacturing facility in Bahrain. Shipping disruptions in the Middle East and surrounding waterways have created, and may continue to create, logistical pressures, including reduced availability of certain shipping routes and increased shipping costs and transit times. While we have taken actions to divert our shipping routes, we may not be able to fully mitigate higher shipping rates, longer shipping routes and other adverse impacts in certain AMEA markets. However, to date, these developments have not had a material impact on our business, results of operations or financial condition. We continue to evaluate these developments and we cannot predict if they will have a significant impact in the future. During the third quarter of 2026, Middle Eastern countries impacted by the conflict generated approximately 1.0% of our consolidated net revenue.
Extreme Price Growth in Argentina and Other Currency-Related Items
During December 2023, the Argentinean peso significantly devalued. The peso's devaluation and potential resulting distortion on our non-GAAP Organic Net Revenue, Organic Net Revenue growth and other constant currency growth rate measures resulted in our decision to exclude the impact of pricing increases in excess of 26% year-over-year ("extreme pricing") in Argentina, from these measures beginning in the first quarter of 2024. The benchmark of 26% represents the minimum annual inflation rate for each year over a 3-year period which would result in a cumulative inflation rate in excess of 100%, the level at which an economy is considered hyperinflationary under U.S. GAAP. Throughout the following MD&A discussion, we exclude the impact of extreme pricing in Argentina from the net pricing impact of Organic Net Revenue and Organic Net Revenue growth and its related impact on our other non-GAAP financial constant currency growth measures. Additionally within this MD&A discussion, "currency-related items" reflect the impacts of extreme pricing and year-over-year currency translation rate changes. Refer to Non-GAAP financial measures for additional information.
Extreme pricing did not have a material impact on our non-GAAP financial measures for the three and nine months ended September 30, 2026.
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ERP System Implementation
In July 2024, our Board of Directors approved funding of $1.2 billion for a multi-year systems transformation program to upgrade our global ERP and supply chain systems (the “ERP System Implementation”). ERP System Implementation spending comprises both capital expenditures and operating expenses, of which a majority is expected to relate to operating expenses. The operating expenses associated with the ERP System Implementation represent incremental transformational costs above the normal ongoing level of spending on information technology to support operations.
During the quarter ended September 30, 2026, we completed the implementation of the new ERP system for our North America and Latin America segments, which was the first phase of our multi-phase global ERP implementation program. The new ERP systems for our remaining segments continue to be implemented in future phases, with expected completion by year-end 2028. Refer to Non-GAAP financial measures for additional information.
Taxes
We continue to monitor existing and potential future tax reform around the world. Numerous countries have enacted the Organization of Economic Cooperation and Development’s model rules on a global minimum tax, effective for 2024. The existing legislation does not have a material impact on our condensed consolidated financial statements. On January 5, 2026, the OECD Inclusive Framework members approved changes to the model rules, including the introduction of a “side by side” rule which would exempt U.S.-parented companies from certain aspects of the global minimum tax regime. The updated model rules will need to be incorporated into local tax legislation to be effective. We do not expect the new rules to have a material impact on our consolidated financial statements.
Non-GAAP Financial Measures
We use non-GAAP financial measures internally to make operating and strategic decisions, including the preparation of our annual operating plan, evaluation of business performance and as a factor in determining incentive compensation. We believe that non-GAAP financial measures, when used in connection with results reported in accordance with U.S. GAAP, provide additional information to facilitate comparisons of our historical operating results and to enable a more comprehensive understanding of trends in our underlying operating results. We also believe that presenting these measures allows investors to view our performance using the same measures that management and our Board of Directors use in evaluating our business performance and trends. However, non-GAAP financial measures should be considered in addition to, and not as substitutes for, financial information prepared in accordance with U.S. GAAP. In addition, our non-GAAP financial measures may not be the same as or comparable to similar non-GAAP measures presented by other companies. A limitation of these non-GAAP financial measures is they exclude items that have an impact on our U.S. GAAP reported results. The best way this limitation can be addressed is by evaluating our non-GAAP financial measures in combination with our U.S. GAAP reported results. We have provided the reconciliations between the GAAP and non-GAAP financial measures along with a discussion of our underlying GAAP results throughout our Management’s Discussion and Analysis of Financial Condition and Results of Operations in this Form 10-Q.
We also evaluate the operating performance of the company and its international subsidiaries on a constant currency basis. Our non-GAAP measures presented on a constant currency basis exclude the effects of currency translation rate changes and, beginning in the first quarter of 2024, extreme pricing increases in Argentina. For additional information, refer to Extreme Price Growth in Argentina and Other Currency-Related Items. We determine constant currency operating results by dividing or multiplying, as appropriate, the current-period local currency operating results by the currency exchange rates used to translate the financial statements in the comparable prior year period to determine what the current-period U.S. dollar operating results would have been if the currency exchange rates had not changed from the comparable prior year period.
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Our primary non-GAAP financial measures and corresponding metrics, listed below, reflect how we evaluate our current and prior year operating results. As new events or circumstances arise, these definitions could change. When our definitions change, we provide the updated definitions and present the related non-GAAP historical results on a comparable basis. When items no longer impact our current or future presentation of non-GAAP operating results, we remove these items from our non-GAAP definitions. For descriptions of the items excluded from our non-GAAP financial measures, refer to Items Affecting Comparability of Financial Results.
•“Organic Net Revenue” is defined as net revenues (the most comparable U.S. GAAP financial measure) excluding, when they occur, the impacts of acquisitions, divestitures and currency-related items. We believe that Organic net revenue reflects the underlying growth from the ongoing activities of our business and provides improved comparability of results. Organic Net Revenue growth is presented on a consolidated basis, for each of our segments and for our emerging markets and developed markets, and these underlying measures are also reconciled to the most comparable U.S. GAAP financial measures.
•Our emerging markets include the entire Latin America region; the AMEA region, excluding Australia, New Zealand and Japan; and the following countries from the Europe region: Russia, Ukraine, Türkiye, Kazakhstan, Georgia, Poland, Czech Republic, Slovak Republic, Hungary, Bulgaria, Romania, the Baltics and the East Adriatic countries.
•Our developed markets include the entire North America region; the Europe region excluding the countries included in the emerging markets definition; and Australia, New Zealand and Japan from the AMEA region.
•“Adjusted Operating Income” is defined as operating income (the most comparable U.S. GAAP financial measure) excluding, when they occur, the impacts of: restructuring charges; intangible asset impairment charges; divestiture-related items; acquisition-related items; remeasurement of net monetary position of highly inflationary countries; mark-to-market impacts from commodity and foreign currency derivative contracts economically hedging forecasted transactions; resolution of tax matters; incremental costs due to geopolitical conflicts and operating costs from the ERP System Implementation program. We also present Adjusted Operating Income margin, which is subject to the same adjustments as Adjusted Operating Income. We also evaluate growth in our Adjusted Operating Income on a constant currency basis.
•“Adjusted EPS” is defined as diluted EPS attributable to Mondelēz International (the most comparable U.S. GAAP financial measure) from continuing operations excluding, when they occur, the impacts of the items listed in the Adjusted Operating Income definition as well as pension participation changes, initial impacts from enacted tax law changes and gains or losses on equity method investment transactions. The tax impacts of the items excluded from our U.S. GAAP results were computed based on the facts and tax assumptions associated with each item, and such impacts have also been excluded from Adjusted EPS. We also evaluate growth in our Adjusted EPS on a constant currency basis.
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Items Affecting Comparability of Financial Results
The below table and subsequent commentary present income or (expense) items that affected the comparability of our results of operations and provides details of each item. Please refer to the notes to the condensed consolidated financial statements indicated below for additional information. These items are excluded from our non-GAAP earnings measures to better facilitate comparisons of our underlying operating performance across periods. We consider quantitative and qualitative factors in assessing whether to adjust for the impact of items that may be significant or that could affect an understanding of our ongoing financial and business performance and trends. We identify these items based on how management views the business; makes financial, operating and planning decisions; and evaluates ongoing performance. Refer to the Consolidated Results of Operations – Net Earnings and Earnings per Share Attributable to Mondelēz International table for the after-tax per share impacts of these items and to the Non-GAAP Financial Measures section for definitions of our non-GAAP financial measures.
| For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||||||||
| See Note | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||
Restructuring charges | Note 12 | $ | (55) | $ | 6 | $ | (111) | $ | 12 | ||||||||||||||||||||
| Intangible asset impairment charges | Note 4 | (64) | (33) | (64) | (33) | ||||||||||||||||||||||||
Mark-to-market gains/(losses) from derivatives (1) | Note 7 | 544 | (345) | 1,097 | (1,111) | ||||||||||||||||||||||||
Acquisition-related items | 42 | (18) | 35 | 11 | |||||||||||||||||||||||||
Divestiture-related items | — | — | 1 | 7 | |||||||||||||||||||||||||
Incremental costs due to geopolitical conflicts | (22) | — | (40) | (1) | |||||||||||||||||||||||||
ERP System Implementation costs | (66) | (41) | (174) | (111) | |||||||||||||||||||||||||
| Remeasurement of net monetary position | Note 1 | (4) | (9) | (20) | (24) | ||||||||||||||||||||||||
Pension participation changes (1) | Note 8 | (2) | (56) | (3) | (343) | ||||||||||||||||||||||||
Resolution of tax matters (1) | — | 32 | — | 32 | |||||||||||||||||||||||||
| Initial impacts from enacted tax law changes | — | 1 | 29 | 4 | |||||||||||||||||||||||||
| Gain/(loss) on equity method investment transactions | Note 5 | — | 169 | (2) | 169 | ||||||||||||||||||||||||
(1)Includes impacts recorded in operating income and interest expense and other, net in the condensed consolidated statements of earnings.
Restructuring charges – Beginning in the fourth quarter of 2025, we initiated new restructuring actions to reduce our cost structure and streamline our operations. The charges associated with those actions primarily relate to severance and other implementation costs. We completed our previous Simplify to Grow Program in 2024. Following the completion of that earlier restructuring program, any adjustments to the liabilities for previously recorded charges, which were immaterial for each period presented, continue to be reflected within this item.
Intangible asset impairment charges – Reflects non-cash impairments of certain of our brands in connection with our indefinite-life intangible asset impairment testing.
Mark-to-market impacts from derivatives – We exclude unrealized gains and losses (mark-to-market impacts) from commodity and foreign currency derivative contracts economically hedging forecasted transactions from our non-GAAP earnings measures. The mark-to-market impacts of those derivatives are excluded until the related gains or losses are realized. Since we purchase commodity and foreign currency derivative contracts to mitigate price volatility primarily for inventory requirements in future periods, we make this adjustment to remove the volatility of these future inventory purchases on current operating results to facilitate comparisons of our underlying operating performance across periods.
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Acquisition-related items – Includes acquisition-related costs, acquisition integration costs, contingent consideration adjustments, inventory step-ups and gains from acquisitions. Acquisition-related costs include third-party advisor, investment banking and legal fees. Acquisition integration costs include costs related to the integration of operations from acquisitions. Contingent consideration adjustments include any changes made to contingent compensation liabilities for earn-outs related to acquisitions that do not relate to recurring employee compensation expense. Refer to Note 7, Financial Instruments - Fair Value of Contingent Consideration for additional information. Other acquisition-related items include incremental costs from inventory step-ups associated with acquired companies related to the fair market valuation of the acquired inventory and acquisition gains from the remeasurement of an existing noncontrolling investment to fair value when the company acquires a controlling interest in the investee.
Divestiture-related items – Includes operating results from divestitures, divestiture-related costs and gains or losses on divestitures. Divestitures may include sales of businesses, exits of major product lines upon completion of a sale or licensing agreement, or sales of equity method investments. Divestiture-related costs include costs incurred in relation to the preparation and completion of divestiture transactions (including one-time costs such as severance related to the elimination of stranded costs) as well as costs incurred associated with publicly announced processes to sell businesses.
Incremental costs due to geopolitical conflicts – Reflects impacts related to the ongoing conflicts in the Middle East and Ukraine. Includes costs related to conflict-related destruction of inventory, transportation surcharges, evacuation costs and committed compensation.
ERP System Implementation costs – In July 2024, our Board of Directors approved funding of $1.2 billion for a multi-year systems transformation program to upgrade our global ERP and supply chain systems, which is comprised of both capital expenditures and operating expenses, of which a majority is expected to be operating expenses. The operating expenses associated with the ERP System Implementation represent incremental transformational costs above the normal ongoing level of spending on information technology to support operations. These expenses include third-party consulting fees, direct labor costs associated with the program, accelerated depreciation of our existing SAP financial systems and various other expenses, all associated with the implementation of our information technology upgrades. During the quarter ended September 30, 2026, we completed the implementation of the new ERP system for our North America and Latin America segments, which was the first phase of our multi-phase global ERP implementation program. The new ERP systems for our remaining segments continue to be implemented in future phases, with expected completion by year-end 2028.
Remeasurement of net monetary position of highly inflationary countries – Our operations in Argentina, Türkiye, Egypt and Nigeria are currently accounted for as highly inflationary. We exclude remeasurement gains and losses of the monetary assets and liabilities of our subsidiaries in highly inflationary economies and the realized gains and losses from derivatives that mitigate the foreign currency volatility related to the remeasurement of the respective monetary assets or liabilities from our non-GAAP earnings measures to facilitate comparisons of our underlying operating performance across periods.
Pension participation changes – Consists of the charges incurred, primarily gains or losses from pension curtailments and settlements, including settlement losses from the full or partial buy-out of our pension plans, as well as costs incurred when employee groups are withdrawn from multiemployer pension plans. We exclude these charges from our non-GAAP results because those amounts do not reflect our ongoing pension obligations.
Resolution of tax matters – Consists of the reversals and settlements of unusual and significant indirect tax matters. Due to the unique nature of these resolutions, we believe it to be infrequent and therefore exclude it from our non-GAAP earnings measures to better facilitate comparisons of our underlying operating performance across periods.
Initial impacts from enacted tax law changes – Initial impacts from enacted tax law changes include items such as the remeasurement of deferred tax balances and transition taxes from tax reforms. We exclude initial impacts from enacted tax law changes from our non-GAAP financial measures as they do not reflect our ongoing tax obligations under the enacted tax law.
Gains and losses on equity method investment transactions – We exclude gains and losses from partial or full sales of equity method investments, as well as impairments or other non-routine transactions related to those investments.
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Discussion and Analysis of Historical Results
Summary of Results
Net Revenues – increased 2.3% to $10.0 billion in the third quarter of 2026 and increased 4.9% to $29.4 billion in the first nine months of 2026 as compared to the same periods in the prior year.
–Net revenue growth in the third quarter of 2026 was driven by favorable volume/mix, higher net pricing and favorable currency-related items, as several currencies we operate in strengthened relative to the U.S. dollar, partially offset by lapping prior year net revenue from a divestiture.
–Net revenue growth in the first nine months of 2026 was driven by favorable currency-related items, as several currencies we operate in strengthened relative to the U.S. dollar, higher net pricing and favorable volume/mix, partially offset by lapping prior year net revenue from a divestiture.
Organic Net Revenue – Organic Net Revenue, a non-GAAP financial measure, increased 2.1% to $9.9 billion in the third quarter of 2026 and increased 2.4% to $28.7 billion in the first nine months of 2026 as compared to the same periods in the prior year. During both the third quarter and the first nine months of 2026 Organic Net Revenue grew due to higher net pricing and favorable volume/mix. Organic Net Revenue is reported on a constant currency basis and excludes revenue from acquisitions and divestitures. Refer to Non-GAAP Financial Measures for the definition of Organic Net Revenue and Consolidated Results of Operations for our reconciliation with net revenues.
Diluted EPS – Diluted EPS attributable to Mondelēz International increased 78.9% to $1.02 in the third quarter of 2026 and increased 94.2% to $2.66 in the first nine months of 2026 as compared to the same periods in the prior year.
–Diluted EPS increased in the third quarter of 2026, primarily driven by a favorable year-over-year change in mark-to-market impacts from commodity and foreign currency derivatives, a favorable year-over-year change in acquisition-related items and lapping prior year pension participation charges. These favorable items were partially offset by lapping a prior year gain on equity method investment transactions, higher restructuring charges, higher costs incurred for the ERP System Implementation program, higher intangible asset impairment charges, lapping a prior year favorable resolution of tax matters and incremental costs due to geopolitical conflicts.
–Diluted EPS increased in the first nine months of 2026, primarily driven by a favorable year-over-year change in mark-to-market impacts from commodity and foreign currency derivatives, lapping prior year pension participation charges, a favorable year-over-year change in acquisition-related items and favorable initial impacts from enacted tax law changes. These favorable items were partially offset by lapping a prior year gain on equity method investment transactions, higher restructuring charges, higher costs incurred for the ERP System Implementation program, incremental costs due to geopolitical conflicts, higher intangible asset impairment charges and lapping prior year favorable resolution of tax matters.
Adjusted EPS – Adjusted EPS, a non-GAAP financial measure, increased 6.8% to $0.78 in the third quarter of 2026 and decreased 0.9% to $2.18 in the first nine months of 2026 as compared to the same periods in the prior year. On a constant currency basis, Adjusted EPS increased 5.5% to $0.77 in the third quarter of 2026 and decreased 4.1% to $2.11 in the first nine months of 2026 as compared to the same periods in the prior year. Refer to Non-GAAP Financial Measures for the definition of Adjusted EPS and Consolidated Results of Operations for our reconciliation with diluted EPS.
–Adjusted EPS increased in the third quarter of 2026, driven by operating increases and fewer shares outstanding, partially offset by higher income tax, higher interest and other expense and lower equity method investment net earnings.
–Adjusted EPS decreased in the first nine months of 2026, driven by operating declines and higher income tax, partially offset by fewer shares outstanding, lower interest and other expense and higher benefit plan non-service income.
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Consolidated Results of Operations
Three Months Ended September 30
| For the Three Months Ended September 30, | |||||||||||||||||||||||
| 2026 | 2025 | $ Change | % Change | ||||||||||||||||||||
| (in millions, except per share data) | |||||||||||||||||||||||
| Net revenues | $ | 9,967 | $ | 9,744 | $ | 223 | 2.3 | % | |||||||||||||||
| Operating income | 1,758 | 744 | 1,014 | 136.3 | % | ||||||||||||||||||
Net earnings attributable to Mondelēz International | 1,305 | 743 | 562 | 75.6 | % | ||||||||||||||||||
Diluted earnings per share attributable to Mondelēz International | 1.02 | 0.57 | 0.45 | 78.9 | % | ||||||||||||||||||
Net Revenues – Net revenues increased $223 million (2.3%) to $9,967 million in the third quarter of 2026, and Organic Net Revenue (1) increased $207 million (2.1%) to $9,942 million. Emerging markets net revenues increased 4.9% and emerging markets Organic Net Revenue increased 4.1% (1). Developed markets net revenues increased 0.5% and developed markets Organic Net Revenue increased 0.8% (1). The underlying changes in net revenues and Organic Net Revenue are detailed below:
| Emerging Markets | Developed Markets | Mondelēz International | |||||||||||||||
| Three Months Ended September 30, 2026 | |||||||||||||||||
| Reported (GAAP) | $ | 4,072 | $ | 5,895 | $ | 9,967 | |||||||||||
Currency-related items | (30) | 5 | (25) | ||||||||||||||
| Organic (Non-GAAP) | $ | 4,042 | $ | 5,900 | $ | 9,942 | |||||||||||
| Three Months Ended September 30, 2025 | |||||||||||||||||
| Reported (GAAP) | $ | 3,881 | $ | 5,863 | $ | 9,744 | |||||||||||
| Divestitures | — | (9) | (9) | ||||||||||||||
| Organic (Non-GAAP) | $ | 3,881 | $ | 5,854 | $ | 9,735 | |||||||||||
| % Change | |||||||||||||||||
| Reported (GAAP) | 4.9 | % | 0.5 | % | 2.3 | % | |||||||||||
| Divestitures | — | 0.2 | 0.1 | ||||||||||||||
Currency-related items | (0.8) | 0.1 | (0.3) | ||||||||||||||
| Organic (Non-GAAP) | 4.1 | % | 0.8 | % | 2.1 | % | |||||||||||
| Vol/Mix | 2.2 pp | 1.5 pp | 1.8 pp | ||||||||||||||
| Pricing | 1.9 | (0.7) | 0.3 | ||||||||||||||
(1)Refer to the Non-GAAP Financial Measures section for additional information.
Net revenues increased 2.3%, driven by by Organic Net Revenue growth of 2.1% and favorable currency-related items, partially offset by lapping prior year net revenue from a divestiture. Organic Net Revenue growth reflected favorable volume/mix and higher net pricing. Favorable volume/mix was driven by growth across all regions and categories, except beverages. Higher net pricing was driven by the benefit of carryover pricing from 2025 as well as input cost-driven pricing actions taken during 2026, and was reflected across all regions except Europe. Currency-related items increased net revenues by $25 million, primarily due to the strength of most currencies relative to the U.S. dollar, including the Mexican peso, Chinese yuan, Brazilian real and Australian dollar. These favorable impacts were partially offset by the strength of the U.S. dollar relative to a few currencies, primarily the Indian rupee, euro and Argentinean peso.
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Operating Income – Operating income increased $1,014 million (136.3%) to $1,758 million in the third quarter of 2026. Adjusted Operating Income (1) increased $213 million (18.2%) to $1,384 million and Adjusted Operating Income on a constant currency basis (1) increased $199 million (17.0%) to $1,370 million due to the following:
| For the Three Months Ended September 30, | |||||||||||||||||||||||
| 2026 | 2025 | $ Change | % Change | ||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
| Operating Income | $ | 1,758 | $ | 744 | $ | 1,014 | 136.3 | % | |||||||||||||||
Restructuring charges | 55 | (6) | 61 | ||||||||||||||||||||
Intangible asset impairment charges | 64 | 33 | 31 | ||||||||||||||||||||
| Mark-to-market (gains)/losses from derivatives | (543) | 348 | (891) | ||||||||||||||||||||
Acquisition-related items | (42) | 18 | (60) | ||||||||||||||||||||
Incremental costs due to geopolitical conflicts | 22 | — | 22 | ||||||||||||||||||||
ERP System Implementation costs | 66 | 41 | 25 | ||||||||||||||||||||
Remeasurement of net monetary position | 4 | 9 | (5) | ||||||||||||||||||||
| Resolution of tax matters | — | (16) | 16 | ||||||||||||||||||||
Adjusted Operating Income (1) | $ | 1,384 | $ | 1,171 | $ | 213 | 18.2 | % | |||||||||||||||
Currency-related items | (14) | — | (14) | ||||||||||||||||||||
Adjusted Operating Income (constant currency) (1) | $ | 1,370 | $ | 1,171 | $ | 199 | 17.0 | % | |||||||||||||||
| Key Drivers of Adjusted Operating Income (constant currency) | $ Change | ||||||||||||||||||||||
Higher net pricing | $ | 31 | |||||||||||||||||||||
Lower input costs | 329 | ||||||||||||||||||||||
| Favorable volume/mix | 54 | ||||||||||||||||||||||
Higher selling, general and administrative expenses | (227) | ||||||||||||||||||||||
Lower amortization of intangible assets | 7 | ||||||||||||||||||||||
Lower fixed asset impairment charges | 5 | ||||||||||||||||||||||
Total change in Adjusted Operating Income (constant currency) (1) | $ | 199 | |||||||||||||||||||||
(1)Refer to the Non-GAAP Financial Measures section for additional information.
During the third quarter of 2026, we realized lower input costs, favorable volume/mix and higher net pricing. The decrease in input costs was driven by lower raw material costs and lower manufacturing costs driven by productivity. Lower raw material costs were primarily due to lower cocoa, dairy and sugar, as well as favorable year-over-year currency exchange impacts on imported materials, partially offset by higher packaging, nuts, edible oils, energy, grains and other ingredient costs. Overall, favorable volume/mix was driven by growth across all categories. Higher net pricing, which included the benefit of carryover pricing from 2025 as well as input cost-driven pricing actions taken during 2026, was reflected across all regions except Europe.
Total selling, general and administrative expenses increased $217 million from the third quarter of 2025, which included higher costs incurred for the ERP System Implementation program, lapping prior year favorable resolution of tax matters and unfavorable currency-related impacts to expenses, which were partially offset by favorable year-over-year change in acquisition integration costs. Excluding these factors, selling, general and administrative expenses increased $227 million from the third quarter of 2025. The increase was driven primarily by higher advertising and consumer promotion costs and higher other selling, general and administrative expenses.
Currency-related items increased operating income by $14 million due to favorable currency translation rate changes, as the impact of extreme pricing in Argentina was not material. Favorable currency translation rate changes were primarily due to the strength of several currencies relative to the U.S. dollar, including the Chinese yuan, Brazilian real, Australian dollar and Mexican peso, partially offset by the strength of the U.S. dollar relative to a few currencies, primarily the Indian rupee, the euro and the Turkish lira.
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Operating income margin increased from 7.6% in the third quarter of 2025 to 17.6% in the third quarter of 2026. The increase in operating income margin was driven primarily by a favorable year-over-year change in mark-to-market impacts from commodity and foreign currency derivatives, higher Adjusted Operating Income margin and a favorable year-over-year change in acquisition-related items, partially offset by higher restructuring charges, higher intangible asset impairment charges, incremental costs due to geopolitical conflicts and higher costs incurred for the ERP System Implementation program. Adjusted Operating Income margin increased from 12.0% for the third quarter of 2025 to 13.9% for the third quarter of 2026. The increase was driven primarily by lower raw material costs, lower manufacturing costs driven by productivity, higher net pricing and favorable volume/mix, partially offset by higher other selling, general and administrative expenses and higher advertising and consumer promotion costs.
Income Taxes – Our effective tax rate was 24.6% for the third quarter of 2026 as compared to 19.7% in the third quarter of 2025. The higher current quarter effective tax rate was driven by prior year tax benefits that did not recur in the current period, including benefits related to the provision for final tax return filings and the tax treatment of certain foreign pension assets. These items were partially offset by current period tax benefits from a legal entity reorganization and a more favorable jurisdictional mix of earnings, including mark-to-market gains and losses on commodity and foreign currency derivatives.
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Net Earnings and Earnings per Share Attributable to Mondelēz International – Net earnings attributable to Mondelēz International of $1,305 million increased by $562 million (75.6%) in the third quarter of 2026. Diluted EPS attributable to Mondelēz International was $1.02 in the third quarter of 2026, up $0.45 (78.9%) from the third quarter of 2025. Adjusted EPS (1) was $0.78 in the third quarter of 2026, up $0.05 (6.8%) as compared to the third quarter of 2025. Adjusted EPS on a constant currency basis (1) was $0.77 in the third quarter of 2026, up $0.04 (5.5%) from the third quarter of 2025.
| For the Three Months Ended September 30, | |||||||||||||||||||||||
| 2026 | 2025 | $ Change | % Change | ||||||||||||||||||||
| Diluted EPS attributable to Mondelēz International | $ | 1.02 | $ | 0.57 | $ | 0.45 | 78.9 | % | |||||||||||||||
| Restructuring charges | 0.04 | — | 0.04 | ||||||||||||||||||||
Intangible asset impairment charges | 0.04 | 0.02 | 0.02 | ||||||||||||||||||||
Mark-to-market (gains)/losses from derivatives | (0.34) | 0.21 | (0.55) | ||||||||||||||||||||
Acquisition-related items | (0.03) | 0.02 | (0.05) | ||||||||||||||||||||
| Incremental costs due to geopolitical conflicts | 0.01 | — | 0.01 | ||||||||||||||||||||
ERP System Implementation costs | 0.04 | 0.02 | 0.02 | ||||||||||||||||||||
Remeasurement of net monetary position | — | 0.01 | (0.01) | ||||||||||||||||||||
Pension participation changes | — | 0.03 | (0.03) | ||||||||||||||||||||
| Resolution of tax matters | — | (0.02) | 0.02 | ||||||||||||||||||||
Gain on equity method investment transactions | — | (0.13) | 0.13 | ||||||||||||||||||||
Adjusted EPS (1) | $ | 0.78 | $ | 0.73 | $ | 0.05 | 6.8 | % | |||||||||||||||
Currency-related items | (0.01) | — | (0.01) | ||||||||||||||||||||
Adjusted EPS (constant currency) (1) | $ | 0.77 | $ | 0.73 | $ | 0.04 | 5.5 | % | |||||||||||||||
| Key Drivers of Adjusted EPS (constant currency) | $ Change | ||||||||||||||||||||||
| Increase in operations | $ | 0.12 | |||||||||||||||||||||
| Change in interest and other expense, net | (0.01) | ||||||||||||||||||||||
| Change in equity method investment net earnings | (0.01) | ||||||||||||||||||||||
Change in income taxes | (0.07) | ||||||||||||||||||||||
| Change in shares outstanding | 0.01 | ||||||||||||||||||||||
Total change in Adjusted EPS (constant currency) (1) | $ | 0.04 | |||||||||||||||||||||
(1)Refer to the Non-GAAP Financial Measures section for additional information. The tax expense/(benefit) of each of the items excluded was as follows:
•For the three months ended September 30, 2026, taxes for the: restructuring charges were $(11) million, intangible asset impairment charges were $(16) million, mark-to-market gains from derivatives were $110 million, acquisition-related items were $(2) million, incremental costs due to geopolitical conflicts were $(4) million and ERP System Implementation program were $(17) million.
•For the three months ended September 30, 2025, taxes for the: intangible asset impairment charges were $(9) million, mark-to-market losses from derivatives were $(71) million, acquisition-related items were $5 million, ERP System Implementation program were $(10) million, remeasurement of net monetary position was zero, pension participation changes were $(14) million, resolution of tax matters was $10 million and gain on equity method investment transactions was zero.
38 | | |||||||
Nine Months Ended September 30:
| For the Nine Months Ended September 30, | |||||||||||||||||||||||
| 2026 | 2025 | $ Change | % Change | ||||||||||||||||||||
| (in millions, except per share data) | |||||||||||||||||||||||
| Net revenues | $ | 29,402 | $ | 28,041 | $ | 1,361 | 4.9 | % | |||||||||||||||
| Operating income | 4,512 | 2,596 | 1,916 | 73.8 | % | ||||||||||||||||||
Net earnings attributable to Mondelēz International | 3,413 | 1,786 | 1,627 | 91.1 | % | ||||||||||||||||||
Diluted earnings per share attributable to Mondelēz International | 2.66 | 1.37 | 1.29 | 94.2 | % | ||||||||||||||||||
Net Revenues – Net revenues increased $1,361 million (4.9%) to $29,402 million in the first nine months of 2026, and Organic Net Revenue (1) increased $684 million (2.4%) to $28,695 million. Emerging markets net revenues increased 7.9% and emerging markets Organic Net Revenue increased 4.9% (1). Developed markets net revenues increased 2.8% and developed markets Organic Net Revenue increased 0.8% (1). The underlying changes in net revenues and Organic Net Revenue are detailed below:
| Emerging Markets | Developed Markets | Mondelēz International | |||||||||||||||
| Nine Months Ended September 30, 2026 | |||||||||||||||||
| Reported (GAAP) | $ | 12,130 | $ | 17,272 | $ | 29,402 | |||||||||||
| Currency-related items | (334) | (373) | (707) | ||||||||||||||
| Organic (Non-GAAP) | $ | 11,796 | $ | 16,899 | $ | 28,695 | |||||||||||
| Nine Months Ended September 30, 2025 | |||||||||||||||||
| Reported (GAAP) | $ | 11,242 | $ | 16,799 | $ | 28,041 | |||||||||||
| Divestitures | — | (30) | (30) | ||||||||||||||
| Organic (Non-GAAP) | $ | 11,242 | $ | 16,769 | $ | 28,011 | |||||||||||
| % Change | |||||||||||||||||
| Reported (GAAP) | 7.9 | % | 2.8 | % | 4.9 | % | |||||||||||
| Divestitures | — | 0.2 | 0.1 | ||||||||||||||
Currency-related items | (3.0) | (2.2) | (2.6) | ||||||||||||||
| Organic (Non-GAAP) | 4.9 | % | 0.8 | % | 2.4 | % | |||||||||||
| Vol/Mix | 1.4 pp | 0.2 pp | 0.6 pp | ||||||||||||||
| Pricing | 3.5 | 0.6 | 1.8 | ||||||||||||||
(1)Refer to the Non-GAAP Financial Measures section above for additional information.
Net revenues increased 4.9%, driven by favorable currency-related items and Organic Net Revenue growth of 2.4%, partially offset by lapping prior year net revenue from a divestiture. Currency-related items increased net revenues by $707 million, primarily due to the strength of most currencies relative to the U.S. dollar, including the euro, Brazilian real, Mexican peso, Australian dollar, Chinese yuan, Russian ruble and British pound sterling, partially offset by the strength of the U.S. dollar relative to a few currencies, primarily the Indian rupee and Argentinean peso. Organic Net Revenue growth was driven by higher net pricing and favorable volume/mix. Higher net pricing reflected the carryover benefit of pricing actions taken in 2025, as well as input cost-driven pricing actions taken during the first nine months of 2026, and was reflected across all regions except Europe. Favorable volume/mix in AMEA and North America was partially offset by unfavorable volume/mix in Europe and Latin America, driven by pricing elasticity impacts.
39 | | |||||||
Operating Income – Operating income increased $1,916 million (73.8%) to $4,512 million in the first nine months of 2026. Adjusted Operating Income (1) decreased $40 million (1.0%) to $3,788 million and Adjusted Operating Income on a constant currency basis (1) decreased $140 million (3.7%) to $3,688 million due to the following:
| For the Nine Months Ended September 30, | |||||||||||||||||||||||
| 2026 | 2025 | $ Change | % Change | ||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
| Operating Income | $ | 4,512 | $ | 2,596 | $ | 1,916 | 73.8 | % | |||||||||||||||
| Restructuring charges | 111 | (12) | 123 | ||||||||||||||||||||
Intangible asset impairment charges | 64 | 33 | 31 | ||||||||||||||||||||
Mark-to-market (gains)/losses from derivatives | (1,097) | 1,110 | (2,207) | ||||||||||||||||||||
Acquisition-related items | (35) | (11) | (24) | ||||||||||||||||||||
Divestiture-related items | (1) | (8) | 7 | ||||||||||||||||||||
| Incremental costs due to geopolitical conflicts | 40 | 1 | 39 | ||||||||||||||||||||
ERP System Implementation costs | 174 | 111 | 63 | ||||||||||||||||||||
Remeasurement of net monetary position | 20 | 24 | (4) | ||||||||||||||||||||
| Resolution of tax matters | — | (16) | 16 | ||||||||||||||||||||
Adjusted Operating Income (1) | $ | 3,788 | $ | 3,828 | $ | (40) | (1.0) | % | |||||||||||||||
Currency-related items | (100) | — | (100) | ||||||||||||||||||||
Adjusted Operating Income (constant currency) (1) | $ | 3,688 | $ | 3,828 | $ | (140) | (3.7) | % | |||||||||||||||
| Key Drivers of Adjusted Operating Income (constant currency) | $ Change | ||||||||||||||||||||||
Higher net pricing | $ | 494 | |||||||||||||||||||||
Higher input costs | (168) | ||||||||||||||||||||||
| Favorable volume/mix | 12 | ||||||||||||||||||||||
Higher selling, general and administrative expenses | (513) | ||||||||||||||||||||||
Lower amortization of intangible assets | 31 | ||||||||||||||||||||||
Lower fixed asset impairment charges | 4 | ||||||||||||||||||||||
Total change in Adjusted Operating Income (constant currency) (1) | $ | (140) | |||||||||||||||||||||
(1)Refer to the Non-GAAP Financial Measures section above for additional information.
During the first nine months of 2026, we realized higher net pricing and favorable volume/mix, partially offset by higher input costs. Higher net pricing, which included the carryover impact of pricing actions taken in 2025 as well as the effects of input cost-driven pricing actions taken during the first nine months of 2026, was reflected across all regions, except Europe. Overall, favorable volume/mix was mainly driven by AMEA, partially offset by all other regions. The increase in input costs was driven by higher raw material costs, partially offset by lower manufacturing costs driven by productivity. Higher raw material costs were primarily due to higher packaging, nuts, edible oils, energy, grains and other ingredient costs, as well as unfavorable year-over-year currency exchange impacts on imported materials, partially offset by lower cocoa, dairy and sugar.
Total selling, general and administrative expenses increased $698 million from the first nine months of 2025, which included unfavorable currency-related impacts to expenses, higher costs incurred for the ERP System Implementation program and lapping prior year favorable resolution of tax matters. Excluding these unfavorable factors, selling, general and administrative expenses increased $513 million from the first nine months of 2025. The increase was driven primarily by higher other selling, general and administrative expenses and higher advertising and consumer promotion costs.
Currency-related items increased operating income by $100 million, primarily due to the strength of several currencies relative to the U.S. dollar, including the Brazilian real, Chinese yuan, the euro and the Mexican peso.
40 | | |||||||
Operating income margin increased from 9.3% in the first nine months of 2025 to 15.3% in the first nine months of 2026. The increase in operating income margin was driven primarily by a favorable year-over-year change in mark-to-market impacts from commodity and foreign currency derivatives and a favorable year-over-year change in acquisition-related items, partially offset by lower Adjusted Operating Income margin, higher restructuring charges, higher costs incurred for the ERP System Implementation program, higher incremental costs due to geopolitical conflicts and higher intangible asset impairment charges. Adjusted Operating Income margin decreased from 13.7% for the first nine months of 2025 to 12.9% for the first nine months of 2026. The decrease was driven primarily by higher raw material costs, higher other selling, general and administrative expenses and higher advertising and consumer promotion costs, partially offset by higher net pricing, lower manufacturing costs driven by productivity and lower amortization of intangible assets.
Income Taxes – Our effective tax rate for the nine months ended September 30, 2026 was 23.1% as compared to 24.9% for the nine months ended September 30, 2025. The lower year-to-date effective tax rate was driven by current period tax benefits from legal entity reorganizations, an amended tax return filing in the U.S., and a more favorable jurisdictional mix of earnings, including mark-to-market gains and losses on commodity and foreign currency derivatives. These items were partially offset by prior year tax benefits that did not recur in the current period, including benefits related to the provision for final tax return filings, the tax treatment of certain foreign pension assets, and the release of liabilities for uncertain tax positions due to audit developments and statute of limitation expirations.
41 | | |||||||
Net Earnings and Earnings per Share Attributable to Mondelēz International – Net earnings attributable to Mondelēz International of $3,413 million increased by $1,627 million (91.1%) in the first nine months of 2026. Diluted EPS attributable to Mondelēz International was $2.66 in the first nine months of 2026, up $1.29 (94.2%) from the first nine months of 2025. Adjusted EPS (1) was $2.18 in the first nine months of 2026, down $0.02 (0.9%) from the first nine months of 2025. Adjusted EPS on a constant currency basis (1) was $2.11 in the first nine months of 2026, down $0.09 (4.1%) from the first nine months of 2025.
| For the Nine Months Ended September 30, | |||||||||||||||||||||||
| 2026 | 2025 | $ Change | % Change | ||||||||||||||||||||
| Diluted EPS attributable to Mondelēz International | $ | 2.66 | $ | 1.37 | $ | 1.29 | 94.2 | % | |||||||||||||||
| Restructuring charges | 0.07 | (0.01) | 0.08 | ||||||||||||||||||||
Intangible asset impairment charges | 0.04 | 0.02 | 0.02 | ||||||||||||||||||||
| Mark-to-market (gains)/losses from derivatives | (0.68) | 0.68 | (1.36) | ||||||||||||||||||||
Acquisition-related items | (0.03) | 0.01 | (0.04) | ||||||||||||||||||||
| Incremental costs due to geopolitical conflicts | 0.03 | — | 0.03 | ||||||||||||||||||||
ERP System Implementation costs | 0.10 | 0.06 | 0.04 | ||||||||||||||||||||
Remeasurement of net monetary position | 0.01 | 0.02 | (0.01) | ||||||||||||||||||||
| Pension participation changes | — | 0.20 | (0.20) | ||||||||||||||||||||
| Resolution of tax matters | — | (0.02) | 0.02 | ||||||||||||||||||||
Initial impacts from enacted tax law changes | (0.02) | — | (0.02) | ||||||||||||||||||||
| Gain on equity method investment transactions | — | (0.13) | 0.13 | ||||||||||||||||||||
Adjusted EPS (1) | $ | 2.18 | $ | 2.20 | $ | (0.02) | (0.9) | % | |||||||||||||||
Currency-related items | (0.07) | — | (0.07) | ||||||||||||||||||||
Adjusted EPS (constant currency) (1) | $ | 2.11 | $ | 2.20 | $ | (0.09) | (4.1) | % | |||||||||||||||
| Key Drivers of Adjusted EPS (constant currency) | $ Change | ||||||||||||||||||||||
Decrease in operations | $ | (0.08) | |||||||||||||||||||||
| Change in benefit plan non-service income | 0.01 | ||||||||||||||||||||||
Change in interest and other expense, net | 0.02 | ||||||||||||||||||||||
Change in income taxes | (0.07) | ||||||||||||||||||||||
Change in shares outstanding | 0.03 | ||||||||||||||||||||||
Total change in Adjusted EPS (constant currency) (1) | $ | (0.09) | |||||||||||||||||||||
(1)Refer to the Non-GAAP Financial Measures section above for additional information. The tax expense/(benefit) of each of the items excluded was as follows:
•For the nine months ended September 30, 2026, taxes for the: restructuring charges were $(24) million, intangible asset impairment charges were $(16) million, mark-to-market gains from derivatives were $223 million, acquisition-related items were $1 million, incremental costs due to geopolitical conflicts were $(4) million, ERP System Implementation program were $(45) million, remeasurement of net monetary position was zero and initial impacts from enacted tax law changes were $(29) million.
•For the nine months ended September 30, 2025, taxes for the: restructuring charges were $3 million, intangible asset impairment charges were $(9) million, mark-to-market losses from derivatives were $(223) million, acquisition-related items were $19 million, ERP System Implementation program were $(28) million, remeasurement of net monetary position was zero, pension participation changes were $(87) million, resolution of tax matters were $10 million and gain on equity method investment transactions was zero.
42 | | |||||||
Results of Operations by Reportable Segment
Our operations and management structure are organized into four operating segments which are also our reportable segments:
•Latin America
•AMEA
•Europe
•North America
We manage our operations by region to leverage regional operating scale, manage different and changing business environments more effectively and pursue growth opportunities as they arise across our key markets. Our regional management teams have responsibility for the business, product categories and financial results in the regions. Refer to Note 15, Segment Reporting, for additional information on our segments and Items Affecting Comparability of Financial Results earlier in this section for items affecting our segment operating results.
Our reconciliation of segment net revenues and earnings to consolidated financial statement totals were:
| For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
| Net revenues: | |||||||||||||||||||||||
| Latin America | $ | 1,387 | $ | 1,238 | $ | 4,109 | $ | 3,635 | |||||||||||||||
| AMEA | 2,182 | 2,017 | 6,457 | 5,854 | |||||||||||||||||||
| Europe | 3,552 | 3,674 | 10,800 | 10,636 | |||||||||||||||||||
| North America | 2,846 | 2,815 | 8,036 | 7,916 | |||||||||||||||||||
| Net revenues | $ | 9,967 | $ | 9,744 | $ | 29,402 | $ | 28,041 | |||||||||||||||
| Segment operating income: | |||||||||||||||||||||||
| Latin America | $ | 170 | $ | 147 | $ | 485 | $ | 419 | |||||||||||||||
| AMEA | 372 | 199 | 952 | 813 | |||||||||||||||||||
| Europe | 339 | 275 | 1,015 | 1,251 | |||||||||||||||||||
| North America | 448 | 547 | 1,263 | 1,486 | |||||||||||||||||||
| Mark-to-market gains/(losses) from derivatives | 543 | (348) | 1,097 | (1,110) | |||||||||||||||||||
| General corporate expenses | (88) | (44) | (222) | (156) | |||||||||||||||||||
| Amortization of intangible assets | (26) | (32) | (79) | (107) | |||||||||||||||||||
Gain on divestiture | — | — | 1 | — | |||||||||||||||||||
| Operating income | $ | 1,758 | $ | 744 | $ | 4,512 | $ | 2,596 | |||||||||||||||
43 | | |||||||
Latin America
| For the Three Months Ended September 30, | |||||||||||||||||||||||
| 2026 | 2025 | $ Change | % Change | ||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
| Net revenues | $ | 1,387 | $ | 1,238 | $ | 149 | 12.0 | % | |||||||||||||||
| Segment operating income | 170 | 147 | 23 | 15.6 | % | ||||||||||||||||||
| For the Nine Months Ended September 30, | |||||||||||||||||||||||
| 2026 | 2025 | $ Change | % Change | ||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
| Net revenues | $ | 4,109 | $ | 3,635 | $ | 474 | 13.0 | % | |||||||||||||||
| Segment operating income | 485 | 419 | 66 | 15.8 | % | ||||||||||||||||||
Three Months Ended September 30:
Net revenues increased $149 million (12.0%), due to higher net pricing (6.1 pp), favorable impact of currency-related items (5.1 pp) and favorable volume/mix (0.8 pp). Higher net pricing was driven by input cost-driven pricing actions and reflected across all categories. Currency-related items were favorable due to the strength of most currencies relative to the U.S. dollar, including the Mexican peso, Brazilian real and Colombian peso, partially offset by the strength of the U.S. dollar relative to the Argentinean peso. Favorable volume/mix reflected volume growth in Argentina, partially offset by declines in Brazil and Mexico. Overall, favorable volume/mix was driven by gains in biscuits & baked snacks, gum & candy and meals, partially offset by chocolate and beverages.
Segment operating income increased $23 million (15.6%), primarily due to higher net pricing, favorable currency translation rate changes and lower manufacturing costs driven by productivity. These favorable items were partially offset by higher advertising and consumer promotion costs, higher raw material costs, higher other selling, general and administrative expenses, lapping prior year favorable resolution of tax matters and higher costs incurred for the ERP System Implementation program.
Nine Months Ended September 30:
Net revenues increased $474 million (13.0%), due to higher net pricing (7.4 pp) and favorable impact of currency-related items (6.2 pp), partially offset by unfavorable volume/mix (0.6 pp). Higher net pricing was driven by input cost-driven pricing actions and reflected across all categories. Currency-related items were favorable due to the strength of most currencies relative to the U.S. dollar, primarily the Brazilian real and Mexican peso, partially offset by the strength of the U.S. dollar relative to the Argentinean peso. Unfavorable volume/mix reflected pricing elasticity, mainly in Brazil. Overall, unfavorable volume/mix was driven by declines in chocolate and beverages, partially offset by gains in gum & candy, biscuits & baked snacks and meals.
Segment operating income increased $66 million (15.8%), primarily due to higher net pricing, favorable currency-related items and lower manufacturing costs driven by productivity. These favorable items were partially offset by higher raw material costs, higher other selling, general and administrative expenses, higher advertising and consumer promotion costs, higher costs incurred for the ERP System Implementation program, lapping prior year favorable resolution of tax matters and unfavorable volume/mix.
44 | | |||||||
AMEA
| For the Three Months Ended September 30, | |||||||||||||||||||||||
| 2026 | 2025 | $ Change | % Change | ||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
| Net revenues | $ | 2,182 | $ | 2,017 | $ | 165 | 8.2 | % | |||||||||||||||
| Segment operating income | 372 | 199 | 173 | 86.9 | % | ||||||||||||||||||
| For the Nine Months Ended September 30, | |||||||||||||||||||||||
| 2026 | 2025 | $ Change | % Change | ||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
| Net revenues | $ | 6,457 | $ | 5,854 | $ | 603 | 10.3 | % | |||||||||||||||
| Segment operating income | 952 | 813 | 139 | 17.1 | % | ||||||||||||||||||
Three Months Ended September 30:
Net revenues increased $165 million (8.2%), due to favorable volume/mix (5.5 pp), higher net pricing (2.2 pp) and favorable currency translation rate changes (0.5 pp). Favorable volume/mix reflected volume growth in all categories except beverages. Higher net pricing, driven by input cost-driven pricing actions, was reflected primarily in chocolate and biscuits & baked snacks. Favorable currency translation impacts were due to the strength of several currencies in the region relative to the U.S. dollar, including the Chinese yuan and Australian dollar, partially offset by the strength of U.S. dollar relative to a few currencies, primarily the Indian rupee.
Segment operating income increased $173 million (86.9%), primarily due to a favorable year-over-year change in acquisition-related items, higher net pricing, lower manufacturing costs driven by productivity and favorable volume/mix. These favorable items were partially offset by higher advertising and consumer promotion costs and higher other selling, general and administrative expenses.
Nine Months Ended September 30:
Net revenues increased $603 million (10.3%), due to favorable volume/mix (5.5 pp), higher net pricing (3.2 pp) and favorable currency translation rate changes (1.6 pp). Favorable volume/mix was reflected in all categories except for beverages. Higher net pricing, driven by input cost-driven pricing actions, was reflected primarily in chocolate and biscuits & baked snacks. Favorable currency translation impacts were due to the strength of several currencies in the region relative to the U.S. dollar, including the Australian dollar, Chinese yuan and South African rand, partially offset by the strength of the U.S. dollar relative to a few currencies, primarily the Indian rupee.
Segment operating income increased $139 million (17.1%), primarily due to higher net pricing, lower manufacturing costs driven by productivity, favorable year-over-year change in acquisition-related items, favorable volume/mix and favorable currency translation rate changes. These favorable items were partially offset by higher raw material costs, higher advertising and consumer promotion costs, higher other selling, general and administrative expenses and incremental costs due to geopolitical conflicts.
45 | | |||||||
Europe
| For the Three Months Ended September 30, | |||||||||||||||||||||||
| 2026 | 2025 | $ Change | % Change | ||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
| Net revenues | $ | 3,552 | $ | 3,674 | $ | (122) | (3.3) | % | |||||||||||||||
| Segment operating income | 339 | 275 | 64 | 23.3 | % | ||||||||||||||||||
| For the Nine Months Ended September 30, | |||||||||||||||||||||||
| 2026 | 2025 | $ Change | % Change | ||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
| Net revenues | $ | 10,800 | $ | 10,636 | $ | 164 | 1.5 | % | |||||||||||||||
| Segment operating income | 1,015 | 1,251 | (236) | (18.9) | % | ||||||||||||||||||
Three Months Ended September 30:
Net revenues decreased $122 million (3.3%), due to lower net pricing (3.7 pp) and unfavorable currency translation rate changes (1.2 pp), partially offset by favorable volume/mix (1.6 pp). Lower net pricing was primarily driven by the lapping of input cost-driven pricing actions taken in the prior year, partially offset by higher net pricing in gum & candy. Unfavorable currency translation impacts were due to the strength of the U.S. dollar relative to most currencies in the region, primarily the euro and the Turkish lira. Overall, favorable volume/mix was reflected across all categories, except for gum & candy and beverages.
Segment operating income increased $64 million (23.3%), primarily due to lower raw material costs, favorable volume/mix and lower manufacturing costs driven by productivity. These favorable items were partially offset by lower net pricing, higher restructuring charges, higher other selling, general and administrative expenses, higher intangible asset impairment charges, incremental costs due to geopolitical conflicts, higher advertising and consumer promotion costs and higher costs incurred for the ERP System Implementation program.
Nine Months Ended September 30:
Net revenues increased $164 million (1.5%), due to favorable currency translation rate changes (3.5 pp), partially offset by unfavorable volume/mix (1.2 pp) and lower net pricing (0.8 pp). Favorable currency translation rate changes reflected the strength of most currencies relative to the U.S. dollar, including the euro, Russian ruble and British pound. Unfavorable volume/mix reflected volume declines as the category continued to experience pricing elasticity effects from prior year pricing actions, partially offset by favorable product mix. Unfavorable volume/mix was primarily driven by declines in chocolate, gum & candy and beverages. Lower net pricing was reflected across all categories, except gum & candy.
Segment operating income decreased $236 million (18.9%), primarily due to higher restructuring charges, lower net pricing, higher other selling, general and administrative expenses, higher advertising and consumer promotion costs, higher costs incurred for the ERP System Implementation program, higher intangible asset impairment charges and higher incremental costs due to geopolitical conflicts. These unfavorable items were partially offset by lower raw material costs, lower manufacturing costs driven by productivity and favorable currency-related items.
46 | | |||||||
North America
| For the Three Months Ended September 30, | |||||||||||||||||||||||
| 2026 | 2025 | $ Change | % Change | ||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
| Net revenues | $ | 2,846 | $ | 2,815 | $ | 31 | 1.1 | % | |||||||||||||||
| Segment operating income | 448 | 547 | (99) | (18.1) | % | ||||||||||||||||||
| For the Nine Months Ended September 30, | |||||||||||||||||||||||
| 2026 | 2025 | $ Change | % Change | ||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
| Net revenues | $ | 8,036 | $ | 7,916 | $ | 120 | 1.5 | % | |||||||||||||||
| Segment operating income | 1,263 | 1,486 | (223) | (15.0) | % | ||||||||||||||||||
Three Months Ended September 30:
Net revenues increased $31 million (1.1%), due to higher net pricing (1.6 pp), partially offset by lapping prior year net revenue from a divestiture (0.3 pp) and unfavorable currency translation rate changes (0.2 pp). Higher net pricing was reflected across all categories, while volume/mix was flat. Unfavorable currency translation rate changes were due to the strength of the U.S. dollar relative to the Canadian dollar.
Segment operating income decreased $99 million (18.1%), primarily due to higher advertising and consumer promotion costs, higher raw material costs, higher intangible asset impairment charges and unfavorable acquisition-related items reflecting a lower year-over-year benefit from contingent consideration adjustments related to Clif Bar. These unfavorable items were partially offset by higher net pricing and lower manufacturing costs driven by productivity.
Nine Months Ended September 30:
Net revenues increased $120 million (1.5%), due to higher net pricing (1.6 pp), favorable volume/mix (0.2 pp) and favorable currency translation rate changes (0.1 pp), partially offset by lapping prior year net revenue from a divestiture (0.4 pp). Higher net pricing and favorable volume/mix were primarily driven by chocolate. Favorable currency translation rate changes were due to the strength of the Canadian dollar relative to the U.S. dollar.
Segment operating income decreased $223 million (15.0%), primarily due to higher raw material costs, higher advertising and consumer promotion costs, unfavorable acquisition-related items reflecting a lower year-over-year benefit from contingent consideration adjustments related to Clif Bar, unfavorable volume/mix, higher other selling, general and administrative expenses, higher intangible asset impairment charges and higher costs incurred for the ERP System Implementation program. These unfavorable items were partially offset by higher net pricing and lower manufacturing costs due to productivity.
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Liquidity and Capital Resources
We believe that cash from operations, our revolving credit facilities, short-term borrowings and long-term debt financing will continue to provide sufficient liquidity for our working capital needs, planned capital expenditures and future payments of our contractual, tax and benefit plan obligations and payments for acquisitions, share repurchases and quarterly dividends. We expect to continue to utilize our commercial paper program and international credit lines as needed. We continually evaluate long-term debt issuances to meet our short- and longer-term funding requirements. We also use intercompany loans with our international subsidiaries to improve financial flexibility. Overall, we do not expect negative effects to our funding sources that would have a material effect on our liquidity, and we continue to monitor our global operations including the impact of developments in Ukraine and the Middle East. To date, we have been successful in generating cash and raising financing as needed. However, if a serious economic or credit market crisis ensues or other adverse developments arise, it could have a material adverse effect on our liquidity, results of operations and financial condition.
Our most significant ongoing short-term cash requirements relate primarily to funding operations (including expenditures for raw materials, labor, manufacturing and distribution, trade and promotions, advertising and marketing, tax liabilities, benefit plan obligations and lease expenses) as well as periodic expenditures for acquisitions, shareholder returns (such as dividend payments and share repurchases), property, plant and equipment and any significant non-operating items.
Long-term cash requirements primarily relate to funding long-term debt repayments (refer to Note 6, Debt and Borrowing Arrangements), deferred taxes (refer to Note 16, Income Taxes, in our Annual Report on Form 10-K for the year ended December 31, 2025), long-term benefit plan obligations (refer to Note 8, Benefit Plans, in Item 1 herein and Note 10, Benefit Plans, in our Annual Report on Form 10-K for the year ended December 31, 2025) and commodity-related purchase commitments and derivative contracts (refer to Note 7, Financial Instruments).
We generally fund short- and long-term cash requirements with cash from operating activities as well as cash proceeds from short- and long-term debt financing (refer to Debt below). We generally do not use equity to fund our ongoing obligations.
Cash Flow
We believe our ability to generate substantial cash from operating activities and readily access capital markets and secure financing at competitive rates are key strengths and give us significant flexibility to meet our short- and long-term financial commitments. Our cash flow activity is noted below:
| For the Nine Months Ended September 30, | |||||||||||
2026 | 2025 | ||||||||||
| (in millions) | |||||||||||
Net cash provided by/(used in): | |||||||||||
| Operating activities | $ | 2,606 | $ | 2,117 | |||||||
| Investing activities | (1,163) | (930) | |||||||||
| Financing activities | (1,952) | (1,346) | |||||||||
Net Cash Provided by Operating Activities
The increase in net cash provided by operating activities was primarily due to favorable changes in working capital, partially offset by lower cash-basis net earnings.
Net Cash Used in Investing Activities
The increase in net cash used in investing activities was primarily driven by higher net payments for derivative settlements and higher capital expenditures in the current year versus the prior year. We continue to make capital expenditures primarily to modernize manufacturing facilities, implement new product manufacturing and support productivity initiatives. We expect 2026 capital expenditures to be up to $1.4 billion, including capital expenditures in connection with funding our strategic priorities. We expect to continue to fund these expenditures with cash from operations.
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Net Cash Used in Financing Activities
The increase in cash used in financing activities was primarily due to lower net proceeds from commercial paper and other short-term borrowings, lower proceeds from long-term debt issuances and higher dividends paid, partially offset by lower share repurchases and lower long-term debt repayments in the first nine months of 2026 compared to the same prior year period.
Dividends
We paid dividends of $1,927 million in the first nine months of 2026 and $1,842 million in the first nine months of 2025. The third quarter 2026 dividend of $0.52 per share, declared on July 28, 2026 for shareholders of record as of September 30, 2026, was paid on October 14, 2026. The declaration of dividends is subject to the discretion of our Board of Directors and depends on various factors, including our net earnings, financial condition, cash requirements, future prospects and other factors that our Board of Directors deems relevant to its analysis and decision making.
Guarantees
As discussed in Note 9, Commitments and Contingencies, we enter into third-party guarantees primarily to cover the long-term obligations of certain vendors. As part of these transactions, we guarantee that third parties will make contractual payments or achieve performance measures. As of September 30, 2026 and December 31, 2025, we had no material third-party guarantees recorded on our condensed consolidated balance sheets. Guarantees do not have, and we do not expect them to have, a material effect on our liquidity.
Debt
The nature and amount of our long-term and short-term debt and the proportionate amount of each varies as a result of current and expected business requirements, market conditions and other factors. As such, we may issue commercial paper or secure other forms of financing throughout the year to meet our short-term working capital or other financing needs.
At its December 2025 meeting, the Board of Directors approved a new $4 billion long-term financing authorization that replaced the prior long-term financing authorization of $4 billion. As of September 30, 2026, $2.9 billion of the long-term financing authorization remained available.
Our total debt was $21.7 billion as of September 30, 2026 and $21.2 billion as of December 31, 2025. Our debt-to-capitalization ratio was 0.45 at September 30, 2026 and 0.45 at December 31, 2025. At September 30, 2026, the weighted-average term of our outstanding long-term debt was 6.9 years. Our average daily commercial paper borrowings outstanding were $2.3 billion in the first nine months of 2026 and $2.2 billion in the first nine months of 2025.
One of our subsidiaries, Mondelez International Holdings Netherlands B.V. (“MIHN”), has outstanding debt. The operations held by MIHN generated approximately 75.2% (or $22.1 billion) of the $29.4 billion of consolidated net revenue for the nine months ended September 30, 2026. The operations held by MIHN represented approximately 97.8% (or $26.1 billion) of the $26.7 billion of consolidated net assets as of September 30, 2026.
Refer to Note 6, Debt and Borrowing Arrangements, for additional information on our debt and debt covenants.
Commodity Trends
We regularly monitor worldwide supply, commodity cost and currency trends so we can cost-effectively secure ingredients, packaging and fuel required for production. Throughout 2026 the market for cocoa has experienced price volatility, however, changes in market prices are not immediately reflected in our cost of goods sold due to our commodity hedging program and the timing of inventory consumption. Other drivers of the increase in our aggregate commodity costs during the first nine months of 2026 included higher packaging, nuts, edible oils, energy, grains and other ingredient costs, as well as unfavorable year-over-year currency exchange impacts on imported materials, partially offset by lower dairy and sugar costs. While the costs of our principal raw materials fluctuate, generally we believe there will continue to be an adequate supply of the raw materials we use and that they will broadly remain available.
A number of external factors such as the current macroeconomic environment, including global inflation, effects of geopolitical uncertainty, climate, weather and other conditions affecting plant health and crop yield, commodity, transportation and labor market conditions, exchange rate volatility and the effects of local and global regulations,
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including trade policies, governmental agricultural or other programs affect the availability and cost of raw materials and agricultural materials used in our products. In particular, the supply of cocoa is exposed to many of these factors, including climate change, weather and other events affecting plant health and crop yield, local regulations in cocoa-producing countries and global regulations such as the EU Deforestation Regulation (which requires companies to ensure that the products they place on the EU market or export from it are not associated with deforestation). These factors could impact the supply of cocoa, which could potentially limit our ability to produce our products and significantly impact our profitability.
During the first nine months of 2026, price volatility and the aggregate cost environment were impacted by international supply chain and labor market disruptions and generally higher commodity, transportation and labor costs. We expect these conditions to continue to impact our aggregate commodity costs. In particular, cocoa costs are lower compared to prior year but are expected to remain elevated compared to historical levels in the near- and medium-term due to these factors. It is possible that we may not be able to increase prices sufficiently to fully cover the incremental costs of cocoa prices in this environment and/or our hedging strategies may not protect us from increases in cocoa costs, which could result in a significant adverse impact on our profitability.
We address higher commodity costs and currency impacts primarily through hedging, higher pricing and manufacturing and overhead cost control. We use hedging techniques to limit the impact of fluctuations in the cost of our principal raw materials; however, we may not be able to fully hedge against commodity cost changes, such as dairy, where there is a limited ability to hedge, and our hedging strategies may not protect us from increases in specific raw material costs. Our commodity procurement practices are intended to mitigate price volatility and provide visibility to future costs, but also may potentially limit our ability to benefit from possible future price decreases. Additionally, our costs for major raw materials will not necessarily reflect market price fluctuations because of our forward purchasing and hedging practices. Due to competitive or market conditions, planned trade or promotional incentives, fluctuations in currency exchange rates or other factors, our pricing actions may also lag commodity cost changes temporarily.
Significant Accounting Estimates
We prepare our condensed consolidated financial statements in conformity with U.S. GAAP. The preparation of these financial statements requires the use of estimates, judgments and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the periods presented. Actual results could differ from those estimates and assumptions. Our significant accounting policies and estimates are described in Note 1 to our consolidated financial statements and Management’s Discussion and Analysis of Financial Condition and Results of Operations, respectively, in our Annual Report on Form 10-K for the year ended December 31, 2025. Also refer to Note 1, Basis of Presentation, in this report.
Forward-Looking Statements
This report contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). All statements other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws, including any projections of earnings, revenue or other financial items; any statements of the plans, strategies and objectives of management, including for future operations, capital expenditures or share repurchases; any statements concerning proposed new products, services, or developments; any statements regarding future economic conditions or performance; any statements of belief or expectation; and any statements of assumptions underlying any of the foregoing or other future events. Forward-looking statements may include, among others, the words, and variations of the words, “will,” “may,” “expect,” “would,” “could,” “might,” “intend,” “plan,” “believe,” “likely,” “estimate,” “anticipate,” “objective,” “predict,” “project,” “drive,” “seek,” “aim,” “target,” "remain," “potential,” “commitment,” “outlook,” “continue” or any other similar words.
Although we believe that the expectations reflected in any of our forward-looking statements are reasonable, actual results or outcomes could differ materially from those projected or assumed in any of our forward-looking statements. Our future financial condition and results of operations, as well as any forward-looking statements, are subject to change and to inherent risks and uncertainties, many of which are beyond our control and are amplified by ongoing macroeconomic volatility and uncertainty, including current and potential trade and tariff actions affecting the countries where we operate. Important factors that could cause our actual results or performance to differ
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materially from those contained in or implied by our forward-looking statements include, but are not limited to, the following:
•weakness and/or volatility in macroeconomic conditions in our markets, including as a result of inflation (and related monetary policy actions by governments in response to inflation) and the instability of certain financial institutions;
•risks from operating globally including geopolitical, trade, tariff and regulatory uncertainties affecting developed and emerging markets;
•volatility of cocoa and other commodity input costs, our ability to effectively hedge such costs and the availability of commodities;
•geopolitical uncertainty, including the impact of ongoing or new developments in Ukraine and the Middle East, related current and future sanctions imposed by governments and other authorities and related impacts, including on our business operations, employees, reputation, brands, financial condition and results of operations;
•competition and our response to channel shifts and pricing and other competitive pressures;
•pricing actions and customer and consumer responses to such actions;
•promotion and protection of our reputation and brand image;
•weakness in consumer spending and/or changes in consumer preferences and demand, including evolving health and wellness trends, and our ability to predict, identify, interpret and meet these changes;
•the outcome and effects on us of legal and tax proceedings and government investigations;
•use of information technology and third party service providers;
•unanticipated disruptions to our business, such as malware incidents, cyberattacks or other security breaches, and supply, commodity, labor and transportation constraints;
•our ability to identify, complete, manage and realize the full extent of the benefits, cost savings, efficiencies and/or synergies presented by strategic acquisitions and other transactions as well as other strategic initiatives, such as our ERP System Implementation program;
•our investments and our ownership interests in those investments;
•restructuring actions and other transformation initiatives not yielding the anticipated benefits;
•changes in the assumptions on which restructuring actions or other transformation initiatives are based;
•the impact of climate change on our supply chain and operations;
•global or regional health pandemics or epidemics;
•consolidation of retail customers and competition with retailer and other economy brands;
•changes in our relationships with customers, suppliers or distributors;
•management of our workforce and shifts in labor availability or labor costs;
•compliance with legal, regulatory, tax and benefit laws and related changes, claims or actions, including evolving and potentially inconsistent federal, state, local and foreign requirements regarding food ingredients, additives, labeling and marketing;
•perceived or actual product quality issues or product recalls, or changing consumer, media, governmental or scientific perceptions of our products or their ingredients;
•failure to maintain effective internal control over financial reporting or disclosure controls and procedures;
•our ability to protect our intellectual property and intangible assets;
•tax matters including changes in tax laws and rates, disagreements with taxing authorities and imposition of new taxes;
•changes in currency exchange rates, controls and restrictions;
•volatility of and access to capital or other markets, interest rates, the effectiveness of our cash management programs and our liquidity;
•pension costs;
•significant changes in valuation factors that may adversely affect our impairment testing of goodwill and intangible assets; and
•the risks and uncertainties, as they may be amended from time to time, set forth in our filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2025 and subsequent Quarterly Reports on Form 10-Q.
There may be other factors not presently known to us or which we currently consider to be immaterial that could cause our actual results to differ materially from those projected in any forward-looking statements we make. We disclaim and do not undertake any obligation to update or revise any forward-looking statement in this report except as required by applicable law or regulation. In addition, historical, current and forward-looking sustainability-related statements may be based on standards for measuring progress that are still developing, internal controls and processes that continue to evolve, and assumptions that are subject to change in the future.
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Item 3. Quantitative and Qualitative Disclosures about Market Risk.
As we operate globally, we are primarily exposed to currency exchange rate, commodity price and interest rate market risks. We monitor and manage these exposures as part of our overall risk management program. Our risk management program focuses on the unpredictability of financial markets and seeks to reduce the potentially adverse effects that the volatility of these markets may have on our operating results.
We principally utilize derivative instruments to reduce significant, unanticipated earnings fluctuations that may arise from volatility in currency exchange rates, commodity prices and interest rates. Additionally, we periodically use interest rate swaps and forward interest rate contracts to achieve a desired proportion of variable versus fixed rate debt based on current and projected market conditions. For additional information on our derivative activity and the types of derivative instruments we use to hedge our currency exchange, commodity price and interest rate exposures, see Note 7, Financial Instruments and for additional information on our debt activity, see Note 6, Debt and Borrowing Arrangements.
For additional information on our strategies, policies and practices on an ongoing basis, refer to our Annual Report on Form 10-K for the year ended December 31, 2025.
Item 4. Controls and Procedures.
Evaluation of Disclosure Controls and Procedures
We have established disclosure controls and procedures that are designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC, and such information is accumulated and communicated to our management, including our Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), as appropriate to allow timely decisions regarding required disclosure. Management, together with our CEO and CFO, evaluated the effectiveness of the Company’s disclosure controls and procedures as of September 30, 2026. Based on this evaluation, the CEO and CFO concluded that our disclosure controls and procedures were effective as of September 30, 2026.
Changes in Internal Control Over Financial Reporting
During the quarter ended September 30, 2026, we completed the implementation of a new ERP system for our North America and Latin America segments, which was the first phase of our ERP System Implementation described in Item 2, Management's Discussion and Analysis of Financial Condition and Results of Operations. The implementation was subject to various testing and review procedures prior to and after execution and we will continue to monitor and evaluate the ERP system and related controls during the post-implementation period. In connection with the implementation, we have updated our internal control over financial reporting, as necessary, to accommodate modifications to our business processes and accounting procedures. Management does not believe that the implementation has had an adverse effect on our internal control over financial reporting.
Management, together with our CEO and CFO, evaluated the changes in our internal control over financial reporting during the quarter ended September 30, 2026. Except with respect to the ERP System Implementation, described above, there were no material changes in our internal control over financial reporting during the quarter ended September 30, 2026, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
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PART II – OTHER INFORMATION
Item 1. Legal Proceedings.
Information regarding legal proceedings is available in Note 9, Commitments and Contingencies, to the condensed consolidated financial statements in this report.
Item 1A. Risk Factors.
There were no material changes to the risk factors disclosed in our Annual Report on Form 10-K for the year ended December 31, 2025.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
Our stock repurchase activity for each of the three months in the quarter ended September 30, 2026 was:
| Issuer Purchases of Equity Securities | |||||||||||||||||||||||
| Period | Total Number of Shares Purchased (1) | Average Price Paid per Share (1) | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2) (3) | Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs (2) (4) | |||||||||||||||||||
| July 1-31, 2026 | 4,305,665 | $ | 59.48 | 4,294,925 | $ | 6,237 | |||||||||||||||||
| August 1-31, 2026 | 1,180,201 | 63.13 | 1,178,966 | 6,162 | |||||||||||||||||||
| September 1-30, 2026 | 5,497,834 | 60.88 | 5,496,525 | 5,828 | |||||||||||||||||||
| For the Quarter Ended September 30, 2026 | 10,983,700 | 60.57 | 10,970,416 | ||||||||||||||||||||
(1)The total number of shares purchased (and the average price paid per share) reflects: (i) shares purchased pursuant to the repurchase program described in (2) below; and (ii) shares tendered to us by employees who used shares to exercise options and to pay the related taxes for grants of deferred stock that vested, totaling 10,740 shares, 1,235 shares and 1,309 shares for the months of July, August and September 2026, respectively.
(2)Effective January 1, 2025, our Board of Directors authorized a program for the repurchase of up to $9.0 billion of our Common Stock through December 31, 2027, excluding excise taxes. During the nine months ended September 30, 2026, we repurchased $874 million and, as of September 30, 2026, we had approximately $5.8 billion of share repurchase authorization remaining. See related information in Note 10, Shareholders' Equity.
(3)Any excise tax incurred on share repurchases is recognized as part of the cost basis of the shares acquired.
(4)Dollar values stated in millions.
Item 5. Other Information.
(c) Insider Trading Arrangements
On September 10, 2026 , Gustavo Valle , Executive Vice President and President, North America , adopted a trading plan intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) of the Exchange Act (the "10b5-1 Plan"). The 10b5-1 Plan provides for (i) the potential exercise of vested stock options and the associated sale of up to 69,520 shares of common stock and (ii) the sale of up to 15,000 shares of our common stock, in each case over a period ending on August 31, 2027 , subject to certain conditions.
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Item 6. Exhibits.
| Exhibit Number | Description | ||||||||||
| 31.1 | |||||||||||
| 31.2 | |||||||||||
| 32.1 | |||||||||||
| 101 | The following materials from Mondelēz International’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2026 are formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) the Condensed Consolidated Statements of Earnings, (ii) the Condensed Consolidated Statements of Comprehensive Earnings, (iii) the Condensed Consolidated Balance Sheets, (iv) the Condensed Consolidated Statements of Equity, (v) the Condensed Consolidated Statements of Cash Flows, (vi) Notes to Condensed Consolidated Financial Statements and (vii) Part II, Item 5. | ||||||||||
| 104 | The cover page from Mondelēz International’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2026, formatted in Inline XBRL (included as Exhibit 101). | ||||||||||
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Signature
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| MONDELĒZ INTERNATIONAL, INC. | ||
| By: /s/ AMIT BANATI | ||
| Amit Banati | ||
| Executive Vice President and | ||
| Chief Financial Officer | ||
| (Duly Authorized Officer) | ||
| October 29, 2026 | ||
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EXHIBIT 31.1
Certifications
I, Dirk Van de Put, certify that:
1.I have reviewed this quarterly report on Form 10-Q of Mondelēz International, Inc.;
2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
Date: October 29, 2026
| /s/ DIRK VAN DE PUT | ||
| Dirk Van de Put Chair and Chief Executive Officer | ||
EXHIBIT 31.2
Certifications
I, Amit Banati, certify that:
1.I have reviewed this quarterly report on Form 10-Q of Mondelēz International, Inc.;
2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
Date: October 29, 2026
| /s/ AMIT BANATI | ||
| Amit Banati Executive Vice President and Chief Financial Officer | ||
EXHIBIT 32.1
CERTIFICATIONS OF
CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER
PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
I, Dirk Van de Put, Chairman and Chief Executive Officer of Mondelēz International, Inc. (“Mondelēz International”), certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that Mondelēz International’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2026 (the "Report"), fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, Mondelēz International’s financial condition and results of operations.
| /s/ DIRK VAN DE PUT | ||
| Dirk Van de Put | ||
| Chair and Chief Executive Officer | ||
| October 29, 2026 | ||
I, Amit Banati, Executive Vice President and Chief Financial Officer of Mondelēz International, Inc. (“Mondelēz International”), certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that Mondelēz International’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2026 (the "Report"), fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, Mondelēz International’s financial condition and results of operations.
| /s/ AMIT BANATI | ||
| Amit Banati | ||
| Executive Vice President and | ||
| Chief Financial Officer | ||
| October 29, 2026 | ||
A signed original of these written statements required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to Mondelēz International, Inc. and will be retained by Mondelēz International, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.