What changed in this filing

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Item 2. Management’s Discussion and Analysis

2026-07-28 compared with 2026-04-28 · 337 added, 145 removed, 379 unchanged (56% of the section changed)

8 unchanged sentences

Macroeconomic environment

We continue to observe significant market and geopolitical uncertainty, fluctuating consumer demand, inflationary pressures, supply constraints, trade and regulatory uncertainty and exchange rate volatility.

As a result, we experienced higher operating costs, including higher overall raw material, labor and energy costs that have continued to rise.

In particular, cocoa prices are lower compared to prior year but are expected to remain elevated compared to historical levels in the near- and medium-term.

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.

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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 the United States and 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.

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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.

The timing and amount of any refunds of these tariffs remains uncertain at this stage.

As such, we have not recorded any anticipated IEEPA tariff refund as of March 31, 2026.

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 $6 million as of June 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 June 30, 2026.

Additionally, the U.S.

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War in Ukraine

In February 2022, following the Russian military invasion of Ukraine, we stopped production and closed our facilities in Ukraine;

since then, we have taken steps to protect the safety of our employees and to restore operations at our two manufacturing facilities, which were significantly damaged in March 2022.

We have suspended new capital investments and our advertising spending in Russia, but as a food company with more than 2,500 employees in the country, we have not ceased operations because we believe that we play a role in the continuity of the food supply.

We continue to evaluate the situation in Ukraine and Russia and our ability to control our operating activities and businesses on an ongoing basis and comply with applicable international sanctions.

We continue to consolidate both our Ukrainian and Russian subsidiaries.

During the first quarter of 2026, Ukraine generated 0.4% and Russia generated 3.1% of our consolidated net revenue.

We cannot predict if the recent strength in our Russian business will continue in the future.

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.

In the event this were to occur, this could lead to the partial or full impairment of our Russian assets or deconsolidation of our Russian operations in future periods, or the termination of and loss of revenue from our business operations, based on actions taken by Russia, other parties or us.

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 second quarter of 2026, Ukraine generated 0.4% and Russia generated 3.8% 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

On February 28, 2026, the United States and Israel launched military strikes on Iran and the situation remains highly uncertain.

Following the military strikes, we briefly stopped production within our manufacturing facility in Bahrain and that facility is now operating with reduced capacity.

As a result of this conflict, recent shipping disruptions in the Middle East and surrounding waterways have created logistical pressures, including impacts to the availability of certain shipping routes, resulting in increased shipping costs and time.

While we have taken actions to divert our shipping routes to minimize impacts on our business, we may not be able to fully mitigate the impact of higher shipping rates, longer shipping routes and other adverse impacts related to this conflict in certain AMEA markets.

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 the impacts of these developments, including evolving geopolitical dynamics, on our business and we cannot predict if they will have a significant impact in the future.

During the first quarter of 2026, Middle Eastern countries impacted by the conflict generated approximately 1.0% of our consolidated net revenue.

We continue to evaluate these developments and we cannot predict if they will have a significant impact in the future.

During the second quarter of 2026, Middle Eastern countries impacted by the conflict generated less than 1.0% of our consolidated net revenue.

Extreme Price Growth in Argentina and Other Currency-Related Items

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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 months ended March 31, 2026.

Extreme pricing did not have a material impact on our non-GAAP financial measures for the three and six months ended June 30, 2026.

ERP System Implementation

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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.

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.

The ERP System Implementation program is being implemented by region in several phases with spending occurring over the next three years, with expected completion by year-end 2028.

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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 rate had not changed from the comparable prior-year period.

dollar operating results would have been if the currency exchange rates had not changed from the comparable prior year period.

Our primary non-GAAP financial measures and corresponding metrics, listed below, reflect how we evaluate our current and prior year operating results.

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restructuring charges;

gains or losses (including non-cash impairment charges) on goodwill and intangible assets;

goodwill and intangible asset impairment charges;

divestiture-related items;

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We also evaluate growth in our Adjusted Operating Income on a constant currency basis.

We believe these measures provide improved comparability of underlying operating results.

• “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 and gains or losses on equity method investment transactions.

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.

We also evaluate growth in our Adjusted EPS on a constant currency basis.

We believe Adjusted EPS provides improved comparability of underlying operating results.

Items Affecting Comparability of Financial Results

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Please refer to the notes to the condensed consolidated financial statements indicated below for additional information.

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.

These items are excluded from our non-GAAP earnings measures to better facilitate comparisons of our underlying operating performance across periods.

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

June 30, For the Six Months Ended

See Note 2026 2025 2026 2025

(in millions, except percentages)

(in millions)

Restructuring charges

Note 11 $ (9) $ 4 $ (56) $ 6

Mark-to-market losses from derivatives (1)

Mark-to-market gains/(losses) from derivatives (1)

Note 6 827 (93) 553 (766)

Acquisition-related items

(13) 21 (7) 29

Divestiture-related items

Incremental costs due to geopolitical conflicts

(11) (1) (18) (1)

ERP System Implementation costs

(59) (37) (108) (70)

Remeasurement of net monetary position Note 1 (11) (8) (16) (15)

Pension participation changes (1)

Note 7 (2) (285) (1) (287)

Initial impacts from enacted tax law changes 30 1 29 3

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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.

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.

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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 charges and credits related to unusual and significant indirect tax matters.

Due to the unique nature of these resolutions, we believe them to be infrequent and therefore exclude them 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.

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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.

In addition, we also exclude from our non-GAAP financial measures any gains or losses realized on economic hedges of sales proceeds from our equity method investment transactions.

Discussion and Analysis of Historical Results

Summary of Results

Net Revenues – increased 8.2% to $10.1 billion in the first quarter of 2026 as compared to the same period in the prior year.

Net revenue growth in the first quarter of 2026 was driven by higher net pricing and favorable currency-related items, as several currencies we operate in strengthened relative to the U.S.

dollar compared to exchange rates in the prior year, partially offset by unfavorable volume/mix and lapping prior-year net revenue from a divestiture.

Organic Net Revenue – Organic Net Revenue, a non-GAAP financial measure, increased 3.0% to $9.6 billion in the first quarter of 2026 as compared to the same period in the prior year due to higher net pricing, partially offset by unfavorable volume/mix.

Net Revenues – increased 4.1% to $9.4 billion in the second quarter of 2026 and increased 6.2% to $19.4 billion in the first six months of 2026 as compared to the same periods in the prior year.

Net revenue growth in both the second quarter and first six 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 2.2% to $9.2 billion in the second quarter of 2026 and increased 2.6% to $18.8 billion in the first six months of 2026 as compared to the same periods in the prior year.

During both the second quarter and the first six 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 41.9% to $0.44 in the first quarter of 2026 as compared to the same period in the prior year.

The increase was primarily driven by a favorable year-over-year change in mark-to-market impacts from commodity and foreign currency derivatives.

This favorable item was partially offset by a decrease in Adjusted EPS, higher restructuring charges and higher costs incurred for the ERP System Implementation program.

Adjusted EPS – Adjusted EPS, a non-GAAP financial measure, decreased 9.5% to $0.67 in the first quarter of 2026 as compared to the same period in the prior year.

On a constant currency basis, Adjusted EPS decreased 14.9% to $0.63 in the first quarter of 2026 as compared to the same period in the prior year.

Diluted EPS – Diluted EPS attributable to Mondelēz International increased 144.9% to $1.20 in the second quarter of 2026 and increased 105.0% to $1.64 in the first six months of 2026 as compared to the same periods in the prior year.

Diluted EPS increased in both the second quarter and first six months of 2026, primarily driven by a favorable year-over-year change in mark-to-market impacts from commodity and foreign currency derivatives, lower pension participation charges and initial impacts from enacted tax law changes.

These favorable items were partially offset by higher acquisition-related items, higher costs incurred for the ERP System Implementation program and higher incremental costs due to geopolitical conflicts.

The first six months of 2026 also reflected higher restructuring charges.

Adjusted EPS – Adjusted EPS, a non-GAAP financial measure, was flat at $0.73 in the second quarter of 2026 and decreased 4.8% to $1.40 in the first six months of 2026 as compared to the same periods in the prior year.

On a constant currency basis, Adjusted EPS decreased 2.7% to $0.71 in the second quarter of 2026 and decreased 8.8% to $1.34 in the first six 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.

The decrease in Adjusted EPS was driven by operating declines and higher income taxes, partially offset by lower interest and other expense, favorable currency-related items and fewer shares outstanding.

– Adjusted EPS was flat in the second quarter of 2026, as operating declines and higher interest and other expense were offset by lower income tax and favorable currency-related items.

– Adjusted EPS decreased in the first six months of 2026, driven by operating declines, partially offset by favorable currency-related items, lower interest and other expense, higher benefit plan non-service income and fewer shares outstanding.

Consolidated Results of Operations

Three Months Ended March 31

Three Months Ended June 30

For the Three Months Ended

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1.20 0.49 0.71 144.9 %

Net Revenues – Net revenues increased $767 million (8.2%) to $10,080 million in the first quarter of 2026, and Organic Net Revenue (1) increased $279 million (3.0%) to $9,581 million.

Net Revenues – Net revenues increased $371 million (4.1%) to $9,355 million in the second quarter of 2026, and Organic Net Revenue (1) increased $198 million (2.2%) to $9,172 million.

Emerging markets net revenues increased 7.4% and emerging markets Organic Net Revenue increased 4.4% (1) .

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International

Three Months Ended March 31, 2026

Three Months Ended June 30, 2026

Reported (GAAP) $ 3,909 $ 5,446 $ 9,355

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Organic (Non-GAAP) $ 3,798 $ 5,374 $ 9,172

Three Months Ended March 31, 2025

Three Months Ended June 30, 2025

Reported (GAAP) $ 3,638 $ 5,346 $ 8,984

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(1) Refer to the Non-GAAP Financial Measures section for additional information.

Net revenue increase of 8.2% was driven by our underlying Organic Net Revenue growth of 3.0% and favorable currency-related items, partially offset by lapping prior-year net revenue from a divestiture.

Organic Net Revenue growth was driven by higher net pricing, partially offset by unfavorable volume/mix.

Higher net pricing was due to the benefit of carryover pricing from 2025 as well as the effects of input cost-driven pricing actions taken during 2026.

Higher net pricing was reflected in all regions.

Unfavorable volume/mix was experienced in Europe, Latin America and North America, driven by volume declines reflecting pricing elasticity impacts in Europe and Latin America, as well as soft biscuits & baked snacks consumption in North America.

Currency-related items increased net revenues by $499 million, primarily driven by favorable currency translation rate changes, due to the strength of most currencies relative to the U.S.

dollar, including the euro, British pound sterling, Mexican peso, Brazilian real, Russian ruble, Australian dollar and Chinese yuan.

Net revenues increase of 4.1%, driven by Organic Net Revenue growth of 2.2% and favorable currency-related items, partially offset by lapping prior year net revenue from a divestiture.

Organic Net Revenue growth reflected higher net pricing and favorable volume/mix.

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.

Favorable volume/mix was driven by growth across most regions and categories, partially offset by Europe where chocolate volume declines are moderating following elevated pricing actions taken in the prior year.

Currency-related items increased net revenues by $183 million, primarily due to the strength of most currencies relative to the U.S.

dollar, including the Brazilian real, Mexican peso, euro, Chinese yuan, Australian dollar and Russian ruble.

These favorable impacts were partially offset by the strength of the U.S.

dollar relative to a few currencies, primarily the Argentinean peso, Indian rupee and Turkish lira.

Operating Income – Operating income increased $128 million (18.8%) to $808 million in the first quarter of 2026.

dollar relative to a few currencies, primarily the Indian rupee and Argentinean peso.

Operating Income – Operating income increased $774 million (66.0%) to $1,946 million in the second quarter of 2026.

Adjusted Operating Income (1) decreased $61 million (4.8%) to $1,222 million and Adjusted Operating Income on a constant currency basis (1) decreased $78 million (6.1%) to $1,205 million due to the following:

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Restructuring charges

Mark-to-market losses from derivatives

273 669 (396)

Mark-to-market (gains)/losses from derivatives (827) 93 (920)

Acquisition-related items

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Higher input costs

Unfavorable volume/mix (54)

Favorable volume/mix 11

Higher selling, general and administrative expenses

Lower amortization of intangible assets

Higher fixed asset impairment charges

Total change in Adjusted Operating Income (constant currency) (1)

(1) Refer to the Non-GAAP Financial Measures section for additional information.

During the first quarter of 2026, we realized higher net pricing, which was more than offset by increased input costs and unfavorable volume/mix.

Higher net pricing, which included the carryover impact of pricing actions taken in 2025, was reflected across all regions.

During the second quarter of 2026, we realized higher net pricing and favorable volume/mix, which was partially offset by increased input costs.

Higher net pricing, which included the carryover impact of pricing actions taken in 2025, was reflected across all regions except Europe.

The increase in input costs was driven by higher raw material costs, partially offset by lower manufacturing costs driven by productivity.

While there were declines in cocoa market prices during the first quarter of 2026, those declines did not translate into lower costs due to our existing hedge positions and sales of higher cost inventory that we held at the beginning of the period, Higher raw material costs were also driven by higher packaging, edible oils, nuts, energy, dairy and other ingredient costs, as well as unfavorable year-over-year currency exchange transaction costs on imported materials, partially offset by lower sugar and grain costs.

Overall, unfavorable volume/mix was experienced in Europe, Latin America and North America, reflecting pricing elasticity impacts as well as biscuits & baked snacks category softness in North America.

Total selling, general and administrative expenses increased $205 million from the first quarter of 2025, which was net of several unfavorable factors noted in the table above, including in part, an unfavorable currency-related impacts to expenses and higher costs incurred for the ERP System Implementation program.

Excluding these factors, selling, general and administrative expenses increased $104 million from the first quarter of 2025.

The increase was driven primarily by higher advertising and consumer promotion costs and higher other selling, general and administration expenses.

While cocoa prices moderated from prior year levels, the benefit was limited as existing hedge positions continue to reflect previously contracted prices.

Higher raw material costs were also driven by higher packaging, nuts, energy, edible oils, 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.

Overall, favorable volume/mix was driven by growth across most regions and categories, partially offset by Europe where chocolate volume declines are moderating following elevated pricing actions taken in the prior year.

Total selling, general and administrative expenses increased $276 million from the second quarter of 2025, which included unfavorable currency-related impacts to expenses, an unfavorable year-over-year change in acquisition-related items and higher costs incurred for the ERP System Implementation program.

Excluding these unfavorable factors, selling, general and administrative expenses increased $182 million from the second quarter 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 $17 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 euro, British pound sterling, Russian ruble, Brazilian real, Chinese yuan and Mexican peso, partially offset by the strength of the U.S.

dollar relative to several currencies, including the Swiss franc and Indian rupee.

Operating income margin increased from 7.3% in the first quarter of 2025 to 8.0% in the first 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, partially offset by lower Adjusted Operating Income margin, higher restructuring charges and higher costs incurred for the ERP System Implementation program.

Adjusted Operating Income margin decreased from 14.8% for the first quarter of 2025 to 11.7% for the first quarter of 2026.

The decrease was driven primarily by higher raw material costs, unfavorable product mix, higher advertising and consumer promotion costs and general and administrative expenses, partially offset by higher pricing and lower manufacturing costs driven by productivity.

Income Taxes – In the first quarter of 2026, our effective tax rate was 29.4% as compared to 28.3% in the first quarter of 2025.

The lower effective tax rate in the prior year was mainly driven by releases of liabilities for uncertain tax positions due to audit developments in the first quarter of 2025.

Net Earnings and Earnings per Share Attributable to Mondelēz International – Net earnings attributable to Mondelēz International of $560 million increased by $158 million (39.3%) in the first quarter of 2026.

Diluted EPS attributable to Mondelēz International was $0.44 in the first quarter of 2026, up $0.13 (41.9%) from the first quarter of 2025.

Adjusted EPS (1) was $0.67 in the first quarter of 2026, down $0.07 (9.5%) from the first quarter of 2025.

Adjusted EPS on a constant currency basis (1) was $0.63 in the first quarter of 2026, down $0.11 (14.9%) from the first quarter of 2025.

dollar, including the Brazilian real, Mexican peso and Chinese yuan, partially offset by the strength of the U.S.

dollar relative to a few currencies, primarily the Egyptian pound and Indian rupee.

Operating income margin increased from 13.0% in the second quarter of 2025 to 20.8% in the second 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, partially offset by lower Adjusted Operating Income margin, an unfavorable year-over-year change in acquisition-related items, higher costs incurred for the ERP System Implementation program, higher restructuring charges and incremental costs due to geopolitical conflicts.

Adjusted Operating Income margin decreased from 14.3% for the second quarter of 2025 to 13.1% for the second quarter 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 and lower manufacturing costs driven by productivity.

Income Taxes – Our effective tax rate was 19.2% for the second quarter of 2026 as compared to 26.9% in the second quarter of 2025.

The decrease in our effective tax rate was driven by our jurisdictional mix of earnings, in particular the impact of mark-to-market gains and losses on commodity and foreign currency derivatives on a year over year basis, as well as tax benefits recorded in the current quarter related to a legal entity reorganization and a U.S.

amended tax return filing.

Net Earnings and Earnings per Share Attributable to Mondelēz International – Net earnings attributable to Mondelēz International of $1,548 million increased by $907 million (141.5%) in the second quarter of 2026.

Diluted EPS attributable to Mondelēz International was $1.20 in the second quarter of 2026, up $0.71 (144.9%) from the second quarter of 2025.

Adjusted EPS (1) was $0.73 in the second quarter of 2026, flat as compared to the second quarter of 2025.

Adjusted EPS on a constant currency basis (1) was $0.71 in the second quarter of 2026, down $0.02 (2.7%) from the second quarter of 2025.

For the Three Months Ended

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Diluted EPS attributable to Mondelēz International $ 1.20 $ 0.49 $ 0.71 144.9 %

Restructuring charges 0.03 — 0.03

Mark-to-market losses from derivatives

Mark-to-market (gains)/losses from derivatives

(0.51) 0.06 (0.57)

Acquisition-related items

0.01 (0.01) 0.02

Incremental costs due to geopolitical conflicts 0.01 — 0.01

ERP System Implementation costs

0.03 0.02 0.01

Remeasurement of net monetary position

Pension participation changes

— 0.16 (0.16)

Initial impacts from enacted tax law changes

(0.02) — (0.02)

Adjusted EPS (1)

8 unchanged sentences

Change in income taxes

Change in shares outstanding 0.01

Total change in Adjusted EPS (constant currency) (1)

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GAAP results was computed based on the facts and tax assumptions associated with each item, and such impacts have also been excluded from Adjusted EPS.

• For the three months ended March 31, 2026, taxes for the:

restructuring charges were $(9) million, mark-to-market losses from derivatives were $(59) million and ERP System Implementation program were $(13) million.

• For the three months ended March 31, 2025, taxes for the:

mark-to-market losses from derivatives were $(136) million and ERP System Implementation program were $(8) million.

• For the three months ended June 30, 2026, taxes for the:

mark-to-market gains from derivatives were $172 million, ERP System Implementation program were $(15) million and initial impacts from enacted tax law changes were $(30) million.

• For the three months ended June 30, 2025, taxes for the:

mark-to-market losses from derivatives were $(16) million, acquisition-related items were $9 million, ERP System Implementation program were $(10) million, pension participation changes were $(73) million and initial impacts from enacted tax law changes were $(1) million.

Six Months Ended June 30:

For the Six Months Ended

2026 2025 $ Change

(in millions, except per share data)

Net revenues $ 19,435 $ 18,297 $ 1,138 6.2 %

Operating income 2,754 1,852 902 48.7 %

Net earnings attributable to

Mondelēz International

2,108 1,043 1,065 102.1 %

Diluted earnings per share attributable to

Mondelēz International

1.64 0.80 0.84 105.0 %

Net Revenues – Net revenues increased $1,138 million (6.2%) to $19,435 million in the first six months of 2026, and Organic Net Revenue (1) increased $477 million (2.6%) to $18,753 million.

Emerging markets net revenues increased 9.5% and emerging markets Organic Net Revenue increased 5.3% (1) .

Developed markets net revenues increased 4.0% and developed markets Organic Net Revenue increased 0.8% (1) .

The underlying changes in net revenues and Organic Net Revenue are detailed below:

Markets Developed

Markets Mondelēz

International

Six Months Ended June 30, 2026

Reported (GAAP) $ 8,058 $ 11,377 $ 19,435

Currency-related items

(304) (378) (682)

Organic (Non-GAAP) $ 7,754 $ 10,999 $ 18,753

Six Months Ended June 30, 2025

Reported (GAAP) $ 7,361 $ 10,936 $ 18,297

Divestitures — (21) (21)

Organic (Non-GAAP) $ 7,361 $ 10,915 $ 18,276

Reported (GAAP) 9.5 % 4.0 % 6.2 %

Divestitures — 0.2 0.1

Currency-related items

(4.2) (3.4) (3.7)

Organic (Non-GAAP) 5.3 % 0.8 % 2.6 %

Vol/Mix 1.0 pp (0.5)pp 0.1 pp

Pricing 4.3 1.3 2.5

(1) Refer to the Non-GAAP Financial Measures section above for additional information.

Net revenues increase of 6.2%, driven by favorable currency-related items and Organic Net Revenue growth of 2.6%, partially offset by lapping prior year net revenue from a divestiture.

Currency-related items increased net revenues by $682 million, primarily due to the strength of most currencies relative to the U.S.

dollar, including the euro, Brazilian real, Mexican peso, Russian ruble, Australian dollar, British pound sterling and Chinese yuan, 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, while volume/mix was essentially flat.

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 six months of 2026, and was reflected across regions.

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.

Operating Income – Operating income increased $902 million (48.7%) to $2,754 million in the first six months of 2026.

Adjusted Operating Income (1) decreased $253 million (9.5%) to $2,404 million and Adjusted Operating Income on a constant currency basis (1) decreased $339 million (12.8%) to $2,318 million due to the following:

For the Six Months Ended

2026 2025 $ Change % Change

(in millions)

Operating Income $ 2,754 $ 1,852 $ 902 48.7 %

Restructuring charges 56 (6) 62

Mark-to-market (gains)/losses from derivatives

(554) 762 (1,316)

Acquisition-related items

Divestiture-related items

Incremental costs due to geopolitical conflicts 18 1 17

ERP System Implementation costs

Remeasurement of net monetary position

Adjusted Operating Income (1)

$ 2,404 $ 2,657 $ (253) (9.5) %

Currency-related items

Adjusted Operating Income (constant currency) (1)

$ 2,318 $ 2,657 $ (339) (12.8) %

Key Drivers of Adjusted Operating Income (constant currency) $ Change

Higher net pricing

Higher input costs

Unfavorable volume/mix (43)

Higher selling, general and administrative expenses

Lower amortization of intangible assets

Higher fixed asset impairment charges

Total change in Adjusted Operating Income (constant currency) (1)

(1) Refer to the Non-GAAP Financial Measures section above for additional information.

During the first six months of 2026, we realized higher net pricing, which was more than offset by increased input costs and unfavorable volume/mix.

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 six months of 2026, was reflected across all regions.

The increase in input costs was driven by higher raw material costs, partially offset by lower manufacturing costs driven by productivity.

While cocoa prices moderated from prior year levels, those declines did not translate into lower costs as our existing hedge positions continue to reflect previously contracted prices.

Higher raw material costs were also driven by 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.

Overall, unfavorable volume/mix was experienced across all regions except AMEA, reflecting pricing elasticity impacts.

Total selling, general and administrative expenses increased $481 million from the first six months of 2025, which included unfavorable currency-related impacts to expenses, an unfavorable year-over-year change in acquisition-related items and higher costs incurred for the ERP System Implementation program.

Excluding these unfavorable factors, selling, general and administrative expenses increased $286 million from the first six 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 $86 million, primarily due to the strength of several currencies relative to the U.S.

dollar, including the euro, Brazilian real, Chinese yuan, Mexican peso and Russian ruble.

Operating income margin increased from 10.1% in the first six months of 2025 to 14.2% in the first six 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, partially offset by lower Adjusted Operating Income margin, higher restructuring charges, higher costs incurred for the ERP System Implementation program, an unfavorable year-over-year change in acquisition-related items and incremental costs due to geopolitical conflicts.

Adjusted Operating Income margin decreased from 14.5% for the first six months of 2025 to 12.4% for the first six months of 2026.

The decrease was driven primarily by higher raw material costs, higher other selling, general and administrative expenses, higher advertising and consumer promotion costs and unfavorable product mix, partially offset by higher net pricing and lower manufacturing costs driven by productivity.

Income Taxes – Our effective tax rate for the six months ended June 30, 2026, was 22.1% as compared to 27.4% for the six months ended June 30, 2025.

The decrease in our year-to-date effective tax rate was driven by our jurisdictional mix of earnings, in particular the impact of mark-to-market gains and losses on commodity and foreign currency derivatives on a year over year basis, as well as tax benefits related to a legal entity reorganization and a U.S.

amended tax return filing in the six months ended June 30, 2026, partially offset by tax benefits from releases of liabilities for uncertain tax positions due to audit developments in the six months ended June 30, 2025.

Net Earnings and Earnings per Share Attributable to Mondelēz International – Net earnings attributable to Mondelēz International of $2,108 million increased by $1,065 million (102.1%) in the first six months of 2026 .

Diluted EPS attributable to Mondelēz International was $1.64 in the first six months of 2026, up $0.84 (105.0%) from the first six months of 2025.

Adjusted EPS (1) was $1.40 in the first six months of 2026, down $0.07 (4.8%) from the first six months of 2025.

Adjusted EPS on a constant currency basis (1) was $1.34 in the first six months of 2026, down $0.13 (8.8%) from the first six months of 2025.

For the Six Months Ended

2026 2025 $ Change % Change

Diluted EPS attributable to Mondelēz International $ 1.64 $ 0.80 $ 0.84 105.0 %

Restructuring charges 0.03 — 0.03

Mark-to-market (gains)/losses from derivatives (0.34) 0.47 (0.81)

Acquisition-related items

0.01 (0.01) 0.02

Incremental costs due to geopolitical conflicts 0.01 — 0.01

ERP System Implementation costs

0.06 0.04 0.02

Remeasurement of net monetary position

Pension participation changes — 0.16 (0.16)

Initial impacts from enacted tax law changes

(0.02) — (0.02)

Adjusted EPS (1)

$ 1.40 $ 1.47 $ (0.07) (4.8) %

Currency-related items

(0.06) — (0.06)

Adjusted EPS (constant currency) (1)

$ 1.34 $ 1.47 $ (0.13) (8.8) %

Key Drivers of Adjusted EPS (constant currency) $ Change

Decrease in operations

Change in benefit plan non-service income 0.01

Change in interest and other expense, net

Change in shares outstanding

Total change in Adjusted EPS (constant currency) (1)

(1) Refer to the Non-GAAP Financial Measures section above for additional information.

The tax expense/(benefit) of each of the pre-tax items excluded from our U.S.

GAAP results was computed based on the facts and tax assumptions associated with each item, and such impacts have also been excluded from Adjusted EPS.

• For the six months ended June 30, 2026, taxes for the:

restructuring charges were $(13) million, mark-to-market gains from derivatives were $113 million, acquisition-related items were $3 million, ERP System Implementation program were $(28) million and initial impacts from enacted tax law changes were $(29) million.

• For the six months ended June 30, 2025, taxes for the:

mark-to-market losses from derivatives were $(152) million, acquisition-related items were $14 million, ERP System Implementation program were $(18) million and impact from pension charges were $(73) million.

Results of Operations by Reportable Segment

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For the Three Months Ended

June 30, For the Six Months Ended

2026 2025 2026 2025

(in millions)

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Latin America $ 166 $ 133 $ 315 $ 272

AMEA 254 271 580 614

Europe 382 514 676 976

North America 431 454 815 939

Mark-to-market losses from derivatives

Mark-to-market gains/(losses) from derivatives 827 (93) 554 (762)

General corporate expenses (88) (69) (134) (112)

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Segment operating income 166 133 33 24.8 %

Three Months Ended March 31:

Net revenues increased $145 million (12.1%), due to higher net pricing (8.1 pp) and a favorable impact of currency-related items (7.0 pp), partially offset by unfavorable volume/mix (3.0 pp).

Higher net pricing was driven by input cost-driven pricing actions and reflected across all categories, primarily in Argentina, Brazil and Mexico.

Currency-related items were favorable primarily due to currency translation rate changes, reflecting the strength of most currencies relative to the U.S.

dollar, including the Mexican peso, Brazilian real and Colombian peso.

These favorable impacts were partially offset by the strength of the U.S.

dollar relative to a few currencies, primarily the Argentinean peso.

Unfavorable volume/mix reflected volume declines due to pricing elasticity impacts across most markets, primarily in Argentina and Mexico.

Overall, unfavorable volume/mix was driven by declines in all categories except gum.

Segment operating income increased $10 million (7.2%), primarily due to higher pricing, lower manufacturing costs driven by productivity and favorable currency translation rate changes.

These favorable items were partially offset by higher raw materials, unfavorable volume/mix, higher other selling, general and administrative expenses and higher costs incurred for the ERP System Implementation program.

For the Six Months Ended

2026 2025 $ Change

(in millions)

Net revenues $ 2,722 $ 2,397 $ 325 13.6 %

Segment operating income 315 272 43 15.8 %

Three Months Ended June 30:

Net revenues increased $180 million (15.1%), due to higher net pricing (7.9 pp), favorable impact of currency-related items (6.7 pp) and favorable volume/mix (0.5 pp).

Higher net pricing was driven by input cost-driven pricing actions and reflected across all categories, primarily in Brazil and Argentina.

Currency-related items were favorable due to the strength of most currencies relative to the U.S.

dollar, including the Brazilian real and Mexican peso, partially offset by the strength of the U.S.

dollar relative to the Argentinean peso.

Favorable volume/mix reflected volume growth in Mexico and Argentina, partially offset by declines in Brazil.

Overall, favorable volume/mix driven by gains in gum & candy, biscuits & baked snacks and meals, partially offset by chocolate and beverages.

Segment operating income increased $33 million (24.8%), primarily due to higher net pricing, lower manufacturing costs driven by productivity, favorable currency translation rate changes and favorable volume/mix.

These favorable items were partially offset by higher raw material costs, higher other selling, general and administrative expenses, higher advertising and consumer promotion costs and higher restructuring charges.

Six Months Ended June 30:

Net revenues increased $325 million (13.6%), due to higher net pricing (8.0 pp) and favorable impact of currency-related items (6.9 pp), partially offset by unfavorable volume/mix (1.3 pp).

Higher net pricing was driven by input cost-driven pricing actions and reflected across all categories, primarily in Brazil, Argentina and Mexico.

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 Argentina and Brazil.

Overall, unfavorable volume/mix was driven by declines in chocolate and beverages, partially offset by gains in gum & candy, meals and biscuits & baked snacks.

Segment operating income increased $43 million (15.8%), primarily due to higher net pricing, lower manufacturing costs driven by productivity and favorable currency-related items.

These favorable items were partially offset by higher raw material costs, higher other selling, general and administrative expenses, unfavorable volume/mix, higher costs incurred for the ERP System Implementation program and higher advertising and consumer promotion costs.

For the Three Months Ended

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Segment operating income 254 271 (17) (6.3) %

Three Months Ended March 31:

For the Six Months Ended

2026 2025 $ Change

(in millions)

Net revenues $ 4,275 $ 3,837 $ 438 11.4 %

Segment operating income 580 614 (34) (5.5) %

Three Months Ended June 30:

Net revenues increased $150 million (8.2%), due to favorable volume/mix (5.2 pp), higher net pricing (1.9 pp) and favorable currency translation rate changes (1.1 pp).

Favorable volume/mix reflected volume growth in all categories except beverages.

Higher net pricing, driven by input cost-driven pricing actions, was reflected in all categories except candy.

Favorable currency translation impacts were due to the strength of most currencies in the region relative to the U.S.

dollar, including the Australian dollar, Chinese yuan, South African rand and the Malaysian ringgit, partially offset by the strength of a few currencies relative to the U.S.

dollar, primarily the Indian rupee.

Segment operating income decreased $17 million (5.0%), primarily due to higher raw material costs, higher advertising and consumer promotion costs and incremental costs due to geopolitical conflicts.

These unfavorable items were partially offset by higher net pricing, lower manufacturing costs driven by productivity, favorable volume/mix impact, favorable currency translation rate changes and lower acquisition-related items.

Higher net pricing, driven by input cost-driven pricing actions, was reflected primarily in chocolate and biscuits & baked snacks, partially offset by beverages and meals.

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 decreased $17 million (6.3%), primarily due to higher raw material costs, higher other selling, general and administrative expenses, higher advertising and consumer promotion costs and incremental costs due to geopolitical conflicts.

These unfavorable items were partially offset by lower manufacturing costs driven by productivity, higher net pricing and favorable volume/mix.

Six Months Ended June 30:

Net revenues increased $438 million (11.4%), due to favorable volume/mix (5.5 pp), higher net pricing (3.8 pp) and favorable currency translation rate changes (2.1 pp).

Favorable volume/mix was reflected across all geographies, except certain markets in Africa, and was favorable in all categories except for beverages.

Higher net pricing, driven by input cost-driven pricing actions, was reflected in chocolate, biscuits & baked snacks and meals, partially offset by beverages and gum & candy.

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 decreased $34 million (5.5%), primarily due to higher raw material costs, higher other selling, general and administrative expenses, higher advertising and consumer promotion costs and incremental costs due to geopolitical conflicts.

These unfavorable items were partially offset by higher net pricing, lower manufacturing costs driven by productivity, favorable volume/mix and favorable currency translation rate changes.

For the Three Months Ended

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Segment operating income 382 514 (132) (25.7) %

Three Months Ended March 31:

Net revenues increased $321 million (9.0%), due to favorable currency translation rate changes (9.6 pp) and higher net pricing (2.6 pp), partially offset by unfavorable volume/mix (3.2pp).

For the Six Months Ended

2026 2025 $ Change

(in millions)

Net revenues $ 7,248 $ 6,962 $ 286 4.1 %

Segment operating income 676 976 (300) (30.7) %

Three Months Ended June 30:

Net revenues decreased $35 million (1.0%), due to unfavorable volume/mix (2.1 pp), and lower net pricing (1.4 pp), partially offset by favorable currency translation rate changes (2.5 pp).

Unfavorable volume/mix reflected continued pricing elasticity impacts from prior year pricing actions, primarily driven by declines in chocolate.

Lower net pricing was primarily due to chocolate and biscuits & baked snacks, partially offset by higher net pricing in beverages and gum & candy.

Favorable currency translation rate changes reflected the strength of most currencies relative to the U.S.

dollar, primarily the euro, British pound sterling, Russian ruble, Polish zloty, Swedish krona and Norwegian krone, partially offset by the strength of the U.S.

dollar relative to a few currencies, primarily the Turkish lira.

Higher net pricing, driven by input cost-driven pricing actions, was reflected primarily in chocolate, biscuits & baked snacks, gum and candy.

Unfavorable volume/mix reflected volume declines due to pricing elasticity impacts and was driven by declines in chocolate, candy and beverages, partially offset by gains in meals, biscuits & baked snacks and gum.

Segment operating income decreased $168 million (36.4%), primarily due to higher raw material costs, higher restructuring charges, unfavorable volume/mix and higher advertising and consumer promotion and other selling, general and administrative expenses.

These unfavorable items were partially offset by higher net pricing, favorable currency translation rate changes and by lower manufacturing costs driven by productivity.

dollar, primarily the euro and Russian ruble.

Segment operating income decreased $132 million (25.7%), primarily due to lower net pricing, higher other selling, general and administrative expenses, higher advertising and consumer promotion costs, unfavorable volume/mix, higher costs incurred for the ERP System Implementation program and higher restructuring charges.

These unfavorable items were partially offset by favorable currency-related items.

Six Months Ended June 30:

Net revenues increased $286 million (4.1%), due to favorable currency translation rate changes (6.1 pp) and higher net pricing (0.7 pp), partially offset by unfavorable volume/mix (2.7 pp ) .

Favorable currency translation rate changes reflected strength of most currencies relative to the U.S.

dollar, including the euro, Russian ruble and British pound.

Higher net pricing was driven by the benefit of carryover pricing from 2025, and was reflected across all categories except biscuits & baked snacks and meals.

Overall, 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.

Segment operating income decreased $300 million (30.7%), primarily due to higher raw material costs, unfavorable volume/mix, higher restructuring charges, higher other selling, general and administrative expenses, higher advertising and consumer promotion costs and higher costs incurred for the ERP System Implementation program.

These unfavorable items were partially offset by higher net pricing, favorable currency-related items and lower manufacturing costs driven by productivity.

North America

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Segment operating income 431 454 (23) (5.1) %

Three Months Ended March 31:

Net revenues increased $13 million (0.5%), due to higher net pricing (0.9 pp) and favorable currency translation rate changes (0.4 pp), partially offset by unfavorable volume/mix (0.4 pp) and lapping prior-year net revenue from a divestiture (0.4 pp).

Higher net pricing, driven by input cost-driven pricing actions, was reflected in all categories except candy.

For the Six Months Ended

2026 2025 $ Change

(in millions)

Net revenues $ 5,190 $ 5,101 $ 89 1.7 %

Segment operating income 815 939 (124) (13.2) %

Three Months Ended June 30:

Net revenues increased $76 million (3.0%), due to higher net pricing (2.2 pp) and favorable volume/mix (1.2 pp), partially offset by lapping prior year net revenue from a divestiture (0.4 pp).

Higher net pricing was due to the benefit of carryover pricing from 2025 and was reflected across all categories.

Favorable volume/mix was primarily driven by gains in biscuits & baked snacks due to favorable product mix.

Segment operating income decreased $23 million (5.1%), primarily due to unfavorable acquisition-related items reflecting a lower year-over-year benefit from contingent consideration adjustments related to Clif Bar, higher advertising and consumer promotion costs, higher raw material costs and higher other selling, general and administrative expenses.

These unfavorable items were partially offset by higher net pricing and lower manufacturing costs driven by productivity.

Six Months Ended June 30:

Net revenues increased $89 million (1.7%), due to higher net pricing (1.6 pp), favorable volume/mix (0.4 pp) and favorable currency translation rate changes (0.2 pp), partially offset by lapping prior year net revenue from a divestiture (0.5 pp).

Higher net pricing was driven by the benefit of carryover pricing from 2025 and was reflected across all categories.

Overall, favorable volume/mix was primarily driven by gains in biscuits & baked snacks.

Favorable currency translation rate changes were due to the strength of the Canadian dollar relative to the U.S.

Unfavorable volume/mix was primarily driven by declines in biscuits & baked snacks due to soft consumption in the U.S.

Segment operating income decreased $101 million (20.8%), primarily due to higher raw material costs, unfavorable volume/mix, higher advertising and consumer promotions and other selling, general and administrative expenses, higher costs incurred for the ERP System Implementation program, 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 lower manufacturing costs due to productivity and higher net pricing.

Segment operating income decreased $124 million (13.2%), primarily due to higher raw material costs, unfavorable acquisition-related items reflecting a lower year-over-year benefit from contingent consideration adjustments related to Clif Bar, higher advertising and consumer promotion costs, unfavorable volume/mix, higher other selling, general and administrative expenses 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.

Liquidity and Capital Resources

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Our cash flow activity is noted below:

For the Three Months Ended

For the Six Months Ended

(in millions)

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Net Cash Provided by Operating Activities

The reduction in net cash provided by operating activities was primarily due to lower cash-basis net earnings, combined with unfavorable year-over-year working capital movements.

The reduction in net cash provided by operating activities was primarily due to lower cash-basis net earnings.

Net Cash Used in Investing Activities

The increase in net cash used in investing activities was primarily driven by net payments for derivative settlements in the current year versus net proceeds in the prior year, and higher capital expenditures in the current year.

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.

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Net Cash Used in Financing Activities

The reduction in cash used in financing activities was primarily due to lower share repurchases in the current year, partially offset by higher debt repayments, lower proceeds from debt issuances and higher dividends paid in the first three months of 2026 compared to the same prior year period.

We paid dividends of $644 million in the first three months of 2026 and $623 million in the first three months of 2025.

The first quarter 2026 dividend of $0.50 per share, declared on February 12, 2026 for shareholders of record as of March 31, 2026, was paid on April 14, 2026.

The increase in cash used in financing activities was primarily due to higher net debt repayments, lower proceeds from debt issuances in the current year and higher dividends paid, partially offset by lower share repurchases in the six months of 2026 compared to the same prior year period.

We paid dividends of $1,287 million in the first six months of 2026 and $1,233 million in the first six months of 2025.

The second quarter 2026 dividend of $0.50 per share, declared on May 20, 2026 for shareholders of record as of June 30, 2026, was paid on July 14, 2026.

On July 28, 2026, the Audit Committee, with authorization delegated from our Board of Directors, declared a quarterly cash dividend of $0.52 per share of Class A Common Stock, an increase of 4%.

This dividend is payable on October 14, 2026, to shareholders of record as of September 30, 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.

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As part of these transactions, we guarantee that third parties will make contractual payments or achieve performance measures.

As of March 31, 2026 and December 31, 2025, we had no material third-party guarantees recorded on our condensed consolidated balance sheets.

As of June 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.

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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 March 31, 2026, $4 billion of the long-term financing authorization remained available.

On April 10, 2026, we issued three Swiss franc-denominated notes with an aggregate principal amount of Fr.850 (USD $1,074 ) , which reduced our long-term financing authorization by a corresponding amount.

Our total debt was $21.0 billion as of March 31, 2026 and $21.2 billion as of December 31, 2025.

Our debt-to-capitalization ratio was 0.45 at March 31, 2026 and 0.45 at December 31, 2025.

At March 31, 2026, the weighted-average term of our outstanding long-term debt was 7.1 years.

Our average daily commercial paper borrowings outstanding were $3.4 billion in the first three months of 2026 and $1.7 billion in the first three months of 2025.

As of June 30, 2026, $2.9 billion of the long-term financing authorization remained available.

Our total debt was $21.5 billion as of June 30, 2026 and $21.2 billion as of December 31, 2025.

Our debt-to-capitalization ratio was 0.45 at June 30, 2026 and 0.45 at December 31, 2025.

At June 30, 2026, the weighted-average term of our outstanding long-term debt was 6.8 years.

Our average daily commercial paper borrowings outstanding were $1.5 billion in the first six months of 2026 and $2.0 billion in the first six months of 2025.

One of our subsidiaries, Mondelez International Holdings Netherlands B.V.

(“MIHN”), has outstanding debt.

The operations held by MIHN generated approximately 76.2% (or $7.7 billion) of the $10.1 billion of consolidated net revenue for the three months ended March 31, 2026.

The operations held by MIHN represented approximately 97.7% (or $25.2 billion) of the $25.8 billion of consolidated net assets as of March 31, 2026.

The operations held by MIHN generated approximately 75.8% (or $14.7 billion) of the $19.4 billion of consolidated net revenue for the six months ended June 30, 2026.

The operations held by MIHN represented approximately 96.3% (or $25.7 billion) of the $26.7 billion of consolidated net assets as of June 30, 2026.

Refer to Note 5, Debt and Borrowing Arrangements, for additional information on our debt and debt covenants.

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We regularly monitor worldwide supply, commodity cost and currency trends so we can cost-effectively secure ingredients, packaging and fuel required for production.

Other drivers of the increase in our aggregate commodity costs during the first three months of 2026 included higher packaging, edible oils, nuts, energy, dairy and other ingredient costs, as well as unfavorable year-over-year currency exchange transaction costs on imported materials, partially offset by lower sugar and grain costs.

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 six 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.

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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 three months of 2026, price volatility and the higher aggregate cost environment increased due to international supply chain and labor market disruptions and generally higher commodity, transportation and labor costs.

During the first six months of 2026, price volatility and the higher aggregate cost environment increased due to 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.

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Additionally, our costs for major raw materials will not necessarily reflect market price fluctuations because of our forward purchasing and hedging practices.

For example, our hedging positions resulted in our current period costs not fully reflecting the decline in cocoa market prices during the first quarter of 2026.

For example, our hedging positions resulted in our current period costs not fully reflecting the decline in cocoa market prices during the period.

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.

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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 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.

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.

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• promotion and protection of our reputation and brand image;

• weakness in consumer spending and/or changes in consumer preferences and demand and our ability to predict, identify, interpret and meet these changes;

• 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;

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• 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;

• perceived or actual product quality issues or product recalls;

• 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;

11 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis