Mondelez (MDLZ) Stock Forecast & Price Target

Mondelez International is projected to achieve 3% organic sales growth in FY27, supported by over 2% volume contribution despite a slight increase in pricing, indicating robust demand particularly in developed markets. The company has experienced cumulative pricing increases exceeding 35% since 2021, but with declining cocoa costs anticipated, there is potential for volume growth to rebound in the latter half of 2026. With a strong presence in emerging markets generating approximately 40% of sales, a healthy balance sheet with leverage around 3x, and competitive valuation, Mondelez is positioned for continued upward momentum.

Mondelez International's financial outlook is negatively impacted by a projected decline in earnings per share (EPS) for 2026, now estimated at $3.03, reflecting a $0.09 reduction attributed to unfavorable cocoa costs and lower pricing realization. The firm anticipates a 60 basis points contraction in gross margins for fiscal year 2026, driven by significant EBIT margin deterioration in Europe and North America, alongside expected volume declines of nearly 1% offset by price increases. Additionally, the company is facing substantial inventory costing headwinds in the first half of 2026, projected to be around $500 million, which is expected to add considerable pressure to EPS during this period.