Mondelēz International (MDLZ), the global snack-foods company, reported adjusted earnings of $0.78 a share for the third quarter of 2026, up 5.5% on a constant-currency basis, reversing a 2.7% constant-currency decline in the second quarter and a 14.9% decline in the first.

The company said the increase was driven by operating increases and fewer shares outstanding, partially offset by higher income tax, higher interest and other expense and lower equity method investment net earnings.

Reported diluted earnings were $1.02 a share, up 78.9% from a year earlier. Mondelēz attributed that jump primarily to a favorable year-over-year change in mark-to-market impacts from commodity and foreign-currency derivatives, a favorable change in acquisition-related items and lapping prior-year pension participation charges. Those items were partially offset by lapping a prior-year gain on equity-method investment transactions, higher restructuring charges, higher ERP System Implementation costs, higher intangible-asset impairment charges, lapping a prior-year favorable resolution of tax matters and incremental costs from geopolitical conflicts.

Organic net revenue growth slowed to 2.1% from 2.2% in the second quarter, after 3.0% in the first. Volume/mix accelerated to +1.8 percentage points from +0.7 and −0.5, while pricing’s contribution fell to 0.3 percentage points from 1.5. Reported net revenues were $9.97 billion, up 2.3% from a year earlier. The company said growth reflected organic expansion and favorable currency, partially offset by lapping prior-year net revenue from a divestiture.

Europe remained the drag. Organic net revenue there declined 2.1%, with volume/mix +1.6 percentage points and pricing −3.7. Latin America organic growth was 6.9% and Asia, Middle East and Africa 7.7%. North America organic net revenue rose 1.6%, with volume/mix unchanged and pricing +1.6. Emerging markets organic growth was 4.1%; developed markets organic growth was 0.8%.

Adjusted gross profit margin expanded 380 basis points to 34.2%, after a 20-basis-point increase to 34.0% in the second quarter. Adjusted gross profit rose $414 million at constant currency. The company cited lower raw-material costs, lower manufacturing costs from productivity, favorable volume/mix and higher net pricing.

Adjusted operating income margin expanded 190 basis points to 13.9%, reversing a 120-basis-point decline to 13.1% in the second quarter. Adjusted operating income increased $199 million at constant currency. Drivers included lower raw-material costs, lower manufacturing costs from productivity, higher net pricing and favorable volume/mix, partially offset by higher other selling, general and administrative expenses and higher advertising and consumer-promotion costs.

Reported gross profit margin was 39.4%, up 1,260 basis points from a year earlier. The company said the move was driven primarily by a favorable year-over-year change in mark-to-market commodity and foreign-currency derivative impacts and higher adjusted gross profit margin, partially offset by incremental geopolitical-conflict costs. Reported operating income margin was 17.6%, up 1,000 basis points. The company cited a favorable year-over-year change in mark-to-market derivative impacts, higher adjusted operating income margin and a favorable change in acquisition-related items, partially offset by higher restructuring charges, higher intangible-asset impairment charges, geopolitical-conflict costs and higher ERP System Implementation costs.

For the nine months ended September 30, cash provided by operating activities was $2.6 billion and free cash flow was $1.7 billion. The company returned $2.8 billion to shareholders in cash dividends and share repurchases through the third quarter.

During the quarter, Mondelēz completed the first phase of its multi-phase global ERP implementation for North America and Latin America, with remaining segments expected by year-end 2028.

The company reaffirmed 2026 organic net revenue growth of at least 2% and adjusted EPS growth of flat to 5% on a constant-currency basis, and expects 2026 free cash flow of approximately $3 billion. It estimates currency translation would increase 2026 net revenue growth by about 1.5% and adjusted EPS by $0.04.

Mondelēz also announced an agreement to acquire Undercover Snacks, a quinoa crisp line, which it said highlights continued expansion in the high-growth permissible indulgence segment.