Mondelez (MDLZ) Stock Forecast & Price Target

Mondelez International is projected to achieve 3% organic sales growth in FY27, supported by over 2% volume contributions, and benefitting from steady performance in emerging markets alongside developed market initiatives. The firm experienced a notable 9.3% year-over-year increase in net revenues, totaling $10.496 billion, exceeding previous estimates and indicating strong top-line momentum. Robust pricing strategies, particularly following a cumulative 35% increase since 2021, combined with anticipated reductions in raw cocoa costs, position Mondelez for improved earnings growth and continued market share gains, especially given its significant footprint in both emerging and developed markets.

Mondelez International is experiencing a negative outlook primarily due to lowered earnings per share (EPS) estimates for 2026, reflecting a decrease of $0.09 from previous projections and expected modest constant currency growth of only 1.5%. The company's operations have been adversely impacted by disappointing EBIT margins in key regions like Europe and North America, leading to a decrease in gross margin by 100 basis points year-over-year to 30.5%, exacerbated by higher raw material costs, particularly cocoa. Additionally, the firm is facing significant headwinds from inventory costs and volume declines, with anticipated organic sales growth of just over 0.5% for the year, demonstrating ongoing challenges in volume/mix dynamics.