Mondelez International (NASDAQ:MDLZ) Reports Mixed Q3 2025 Results, Stock Falls on Revenue Miss

MONDELEZ INTERNATIONAL INC-A (NASDAQ:MDLZ) reported financial results for the third quarter of 2025, delivering a mixed performance that fell short of analyst revenue expectations despite a slight beat on adjusted earnings per share. The market reaction was decisively negative, with the stock declining approximately 4.6% in after-hours trading following the announcement.

Earnings and Revenue Versus Estimates

The snack food giant's quarterly results presented a complex picture for investors. While the company managed to surpass the bottom-line estimate, its top-line performance failed to meet Wall Street's forecasts.

• Adjusted EPS: $0.73, slightly above the analyst consensus estimate of $0.7297.
• Revenue: $9.74 billion, missing the analyst estimate of $9.91 billion.

This revenue miss appears to be the primary driver behind the negative after-hours price action, suggesting investor concern over the company's sales performance in the face of economic challenges. The divergence between the EPS beat and the stock's decline indicates the market is placing greater emphasis on revenue growth and future outlook.

Quarterly Performance Summary

The third-quarter results were heavily influenced by significant cost inflation, particularly for cocoa, which the company identified as reaching peak levels for the year. The press release highlighted several key financial metrics that illustrate the challenging operating environment.

• Net Revenues: Increased 5.9% to $9.74 billion, driven by organic net revenue growth of 3.4%.
• Volume/Mix: Declined 4.6%, indicating that the revenue growth was primarily achieved through higher pricing rather than increased sales volume.
• Profitability: Gross profit margin contracted significantly to 26.8%, down 580 basis points, primarily due to higher raw material and transportation costs.
• Earnings: Diluted EPS decreased 9.5% to $0.57, while the non-GAAP Adjusted EPS of $0.73 represented a 24.2% decline on a constant currency basis.

Chairman and CEO Dirk Van de Put commented on the quarter, stating, "We delivered solid top-line growth despite the impact of record-high cocoa cost inflation, with the third quarter representing peak costs of the year." He also noted encouraging signs of moderation in cocoa prices and a promising outlook for the upcoming cocoa crop.

Updated 2025 Outlook and Analyst Comparisons

The company provided an updated financial outlook for the full year 2025, which offers a point of comparison against existing analyst estimates.

• Mondelēz expects: Organic Net Revenue growth of 4%+ and Adjusted EPS to decline approximately 15% on a constant currency basis.
• Analysts estimate: Full-year 2025 revenue of approximately $39.24 billion and EPS of $3.08.

The company's projection of an Adjusted EPS decline contrasts with the analyst consensus, which implies a significantly different earnings trajectory. This guidance likely contributed to the negative market sentiment, as it signals continued profitability headwinds. The company maintained its expectation for Free Cash Flow of $3+ billion.

Market Reaction and Investor Sentiment

The immediate sell-off following the earnings release suggests investors are focusing on the combination of the revenue miss, substantial margin compression, and a cautious full-year earnings outlook. The market's reaction indicates that the slight beat on adjusted EPS was not enough to offset concerns about the company's ability to navigate cost inflation and return to stronger volume growth.

For a detailed look at historical earnings, future estimates, and analyst projections for MONDELEZ INTERNATIONAL INC-A (NASDAQ:MDLZ), you can review more information on its earnings and estimates page.

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