Mondelez reported adjusted earnings per share of $0.72 for the fourth quarter of 2025, surpassing the consensus estimate of $0.70. Revenue for the period rose 7% year-over-year to approximately $10.3 billion, driven by double-digit growth in Emerging Markets and mid-single-digit gains in North America and Europe. On a constant currency basis, organic revenue expanded by 8%, reflecting strong pricing execution across biscuit and chocolate portfolios.

GAAP net income for the quarter fell sharply to $665 million, down from $1.75 billion in the year-ago period. The decline was largely attributed to a $400 million adverse impact from higher cocoa and ingredient costs, which outpaced the company’s hedging gains and cost-saving initiatives. Non-GAAP operating margin contracted by 250 basis points to 13.5%, as planned marketing investments and channel mix shifts weighed on profitability.

For fiscal 2026, Mondelez forecasts revenue growth of 3% to 5% on a reported basis and 5% to 7% organically, falling short of Wall Street’s mid-single-digit consensus. Adjusted operating margin is expected to decline by up to 100 basis points due to continued commodity headwinds, with EPS guidance in the range of $2.85 to $2.95. Management flagged ongoing cost inflation in cocoa and logistics as key headwinds that will constrain margin expansion in the first half of the year.

During the call, CEO Dirk Van de Put highlighted a $350 million annualized run rate of productivity savings achieved through supply-chain optimization and overhead reductions. The company plans to reinvest half of these savings into targeted marketing campaigns for core brands such as Oreo, Cadbury Dairy Milk, and Ritz. Additionally, Mondelez announced a 5% increase in its capital allocation for digital e-commerce capabilities, aiming to grow its direct-to-consumer business by 20% in 2026.