AI Takeaway
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.
Revenue
$10.08B
++8.24% YoY
EPS (Basic)
$0.44
++41.94% YoY
Gross Margin
27.8%
++1.71% YoY
Operating Income
$808M
++18.82% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Revenue grew 8.2% YoY from $9.31B to $10.08B in Q1 FY2026, suggesting strong pricing power and/or volume gains across Mondelez's global snacking portfolio. This top-line momentum outpaced cost of revenue growth of 5.7%, contributing to gross profit expansion.
Source: Source: 10-Q Income Statement Data
Gross margin improved by approximately 1.7 percentage points YoY to 27.8%, as revenue growth of 8.2% outpaced cost of revenue growth of 5.7%. This indicates improved operating leverage or easing input cost pressures relative to the prior year period.
Source: Source: 10-Q Income Statement & Key Ratios Data
SG&A expenses rose 12.0% YoY to $1.916B, growing faster than revenue (8.2%), which may reflect increased marketing investment, higher compensation costs, or integration expenses. Despite this, operating income still grew 18.8% to $808M.
Source: Source: 10-Q Income Statement Data
2 more insights available
Upgrade to unlockMDLZ's current ratio stands at just 0.54, meaning current liabilities of $23.5B significantly exceed current assets of $12.7B. Current liabilities grew 11.9% YoY while current assets were essentially flat (+0.1%), widening this gap materially. This raises near-term liquidity concerns and may require refinancing or credit facility utilization.
Source: Source: 10-Q Balance Sheet Data
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $0.67 versus the $0.62 analyst consensus — a +8.1% beat for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $10.08B | $9.31B | +8.24% |
Cost of Revenue | $7.28B | $6.88B | +5.72% |
Gross Profit | $2.8B | $2.43B | +15.35% |
Operating Income | $808M | $680M | +18.82% |
Net Income | $560M | $402M | +39.30% |
EPS (Basic) | $0.44 | $0.31 | +41.94% |
EPS (Diluted) | $0.44 | $0.31 | +41.94% |
SG&A Expense | $1.92B | $1.71B | +11.98% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $71.12B | $68.93B | +3.18% |
Current Assets | $12.74B | $12.73B | +0.12% |
Total Liabilities | $45.32B | $43.1B | +5.14% |
Current Liabilities | $23.5B | $21B | +11.89% |
Stockholders' Equity | $25.75B | $25.79B | -0.14% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $467M | $1.09B | -57.23% |
Investing Cash Flow | $-422M | $-251M | -68.13% |
Financing Cash Flow | $-604M | $-704M | +14.20% |
Dividends Paid | $644M | $623M | +3.37% |
Share Buybacks | $0 | $1.52B | -100.00% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 27.8% | 26.1% | +1.71% |
Operating Margin | 8.0% | 7.3% | +0.71% |
Net Margin | 5.6% | — | — |
ROE | 2.2% | — | — |
ROA | 0.8% | — | — |
Current Ratio | $0.542 | — | — |
Debt to Equity | $1.76 | — | — |
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Mondelez International reported strong Q1 FY2026 results with revenue of $10.08B (up 8.2% YoY) and net income of $560M (up 39.3% YoY). EPS came in at $0.44, up 41.9% from $0.31 in the prior year period.
MDLZ's operating cash flow fell 57.2% YoY to just $467M in Q1 FY2026, despite net income of $560M, suggesting significant working capital headwinds or timing differences in cash collections and payments. This is a key concern because the company paid $644M in dividends during the same period, meaning free cash flow was insufficient to cover the dividend.
Yes, Mondelez suspended share repurchases entirely in Q1 FY2026, with $0 in buybacks compared to $1.522B in the prior year period — a 100% decline. The company continued paying dividends of $644M, suggesting capital is being redirected toward balance sheet management rather than buybacks.
The most pressing risks highlighted by Q1 FY2026 data are the very low current ratio of 0.54 (current liabilities of $23.5B far exceed current assets of $12.7B) and the sharp drop in operating cash flow to $467M. Additionally, debt-to-equity of 1.76x and SG&A growing faster than revenue (12.0% vs. 8.2%) are concerns for future profitability.
Yes, MDLZ's gross margin improved to 27.8% in Q1 FY2026 from 26.1% in the prior year period, a gain of approximately 1.7 percentage points. This improvement was driven by revenue growing 8.2% while cost of revenue grew at a slower pace of 5.7%, suggesting easing input cost pressures or stronger pricing power.