Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Mondelez International (MDLZ) reported FY2025 revenue growth of 5.8% to $38.5B, but profitability was severely pressured by a 24.4% surge in cost of revenue, causing gross margin to collapse by ~10.7 percentage points and net income to fall nearly 47% to $2.45B.
Revenue
$38.54B
+5.75% YoY
EPS (Diluted)
$1.89
-44.74% YoY
Gross Margin
28.4%
-10.7 pts YoY
Operating Income
$3.55B
-44.08% YoY
Source: SEC XBRL
Mondelez International (MDLZ) reported FY2025 revenue of $38.54B, up 5.8% year over year. Operating margin was 9.2%, down 8.2 points from 17.4% a year earlier. Operating cash flow was $4.51B, down 8.1% year over year.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 0.73 | 0.69 | Beat +5.2% |
| Mar 2026 | 0.67 | 0.62 | Beat +8.1% |
| Dec 2025This filing | 0.72 | 0.71 | Beat +1.3% |
| Sep 2025 | 0.73 | 0.73 | Beat +0.2% |
Reported EPS of $0.72 versus the $0.71 analyst consensus — a +1.3% beat for Dec 2025.
Compiled by AI from this SEC filing
MDLZ grew total revenue by 5.8% YoY to $38.54B in FY2025 (vs. $36.44B in FY2024), suggesting the company maintained top-line momentum likely through pricing actions and/or volume gains, even as the broader consumer staples environment remained challenging.
Source: 10-K Income Statement, Financial Data
Cost of revenue surged 24.4% YoY to $27.60B, far outpacing revenue growth of 5.8%, resulting in gross profit declining 23.3% to $10.94B. Gross margin compressed dramatically from 39.1% to 28.4%, a ~10.7 percentage point deterioration, likely driven by elevated commodity costs (notably cocoa) and supply chain pressures.
Source: 10-K Income Statement, Financial Data
Operating income fell 44.1% to $3.55B (from $6.35B), and net income dropped 46.8% to $2.45B (from $4.61B). Operating margin compressed from 17.4% to 9.2%, reflecting the inability to offset input cost inflation through pricing or SG&A reductions alone.
Source: 10-K Income Statement, Financial Data
SG&A expenses declined 3.6% YoY to $7.17B (from $7.44B), demonstrating management's effort to control discretionary spending. However, this reduction was insufficient to compensate for the $5.4B increase in cost of revenue.
Source: 10-K Income Statement, Financial Data
Despite the sharp drop in net income, operating cash flow remained relatively resilient at $4.51B (down only 8.1% from $4.91B), indicating strong underlying cash generation. The company continued returning capital to shareholders via $2.49B in dividends and $2.39B in share buybacks.
Source: 10-K Cash Flow Statement, Financial Data
Compiled by AI from this SEC filing · 3 high, 2 medium, 0 low
The 24.4% surge in cost of revenue strongly suggests extreme commodity cost inflation, most likely driven by historically elevated cocoa prices, which are a core input for Mondelez's chocolate-heavy portfolio. If commodity prices remain elevated or rise further, margins could face continued or worsening pressure. MDLZ's ability to pass through costs via pricing is limited by consumer price sensitivity and competitive dynamics.
Source: 10-K Income Statement, Financial Data
Gross margin fell from 39.1% in FY2024 to 28.4% in FY2025, a ~10.7 percentage point decline that represents a significant structural shift in profitability. If input costs do not normalize, the company may need to undertake major restructuring or accept a permanently lower margin profile. This level of margin compression is unusual for a large-cap consumer staples company and signals acute input cost vulnerability.
Source: 10-K Income Statement, Financial Data
The current ratio stands at only 0.59x, meaning current liabilities ($21.86B) significantly exceed current assets ($12.95B), indicating potential short-term liquidity pressure. Total liabilities grew 9.8% to $45.60B while stockholders' equity declined 4.1% to $25.84B, pushing the debt-to-equity ratio to 1.76x. Continued capital returns (dividends + buybacks of ~$4.87B) amid declining earnings could further strain the balance sheet.
Source: 10-K Balance Sheet and Cash Flow Statement, Financial Data
Basic EPS fell 45.1% YoY to $1.89 (from $3.44), a dramatic decline that may erode investor confidence and put pressure on the stock's valuation multiple. Sustained EPS compression could also affect the company's ability to maintain its dividend growth trajectory, which increased 5.9% to $2.49B in FY2025.
Source: 10-K Income Statement and Cash Flow Statement, Financial Data
Investing cash flow swung from a positive $526M in FY2024 to negative $1.20B in FY2025, a $1.72B reversal, suggesting increased capital expenditures or acquisitions. This shift, combined with declining profitability, reduces financial flexibility and could limit the company's ability to invest in growth or manage debt obligations.
Source: 10-K Cash Flow Statement, Financial Data
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 38.54 $B | 36.44 $B | +5.75% |
Cost of Revenue $B | 27.60 $B | 22.18 $B | +24.42% |
Gross Profit $B | 10.94 $B | 14.26 $B | -23.30% |
Operating Income $B | 3.55 $B | 6.35 $B | -44.08% |
Net Income $B | 2.45 $B | 4.61 $B | -46.84% |
EPS (Basic) $ | 1.89 $ | 3.44 $ | -45.06% |
EPS (Diluted) $ | 1.89 $ | 3.42 $ | -44.74% |
R&D Expense $M | 400.00 $M | 400.00 $M | 0.00% |
SG&A Expense $B | 7.17 $B | 7.44 $B | -3.58% |
Answers draw on this SEC filing and the data on this page
MDLZ reported 4.1% reported revenue growth to $9.4B and a 144.9% increase in diluted EPS to $1.20 in 2026-Q2, but underlying profitability weakened as constant-currency adjusted operating income fell 6.1%, reflecting higher input and selling costs. Source: 10-Q Item 2 MD&A, pp.32-34
Mondelez International (MDLZ) delivered strong Q1 FY2026 results with revenue up 8.2% YoY to $10.08B and net income surging 39.3% to $560M, though operating cash flow dropped sharply by 57.2% to $467M and the current ratio remains well below 1.0, signaling near-term liquidity pressure.
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