What Mondelez International (MDLZ)'s Generative AI Cost-Cutting Move Means for Shareholders

• Last week, Mondelez International revealed its adoption of a generative AI tool developed with Accenture, aimed at reducing marketing production costs by up to 50% and accelerating content delivery across brands and regions.
• This move highlights Mondelez's efforts to boost cost efficiency through advanced technology, just as the company prepares for an earnings report amid evolving cocoa market dynamics and broader industry developments.
• We'll explore how Mondelez's use of generative AI to cut marketing expenses could influence its long-term earnings outlook and valuation case.

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Mondelez International Investment Narrative Recap

Mondelez International's investment case centers on its ability to manage input cost pressures while continuing to grow through strategic pricing, innovation, and expansion in emerging markets. The recent adoption of generative AI is unlikely to materially impact Mondelez’s most important near-term catalyst, its upcoming earnings report, which remains highly sensitive to cocoa price trends and volume mix recovery, nor does it fundamentally shift the main risk of elevated commodity costs pressuring margins. Instead, it signals a longer-term focus on cost efficiency rather than directly affecting immediate earnings volatility.

One relevant recent announcement is Mondelez’s Q3, 2025 earnings update, expected after the close today, with analysts projecting 5.5% revenue growth year-on-year to US$9.71 billion as the company navigates both recovery in global demand and continued input cost headwinds. While the AI investment may help offset some marketing expenses over time, the main near-term watchpoint is whether Mondelez can maintain pricing power and volumes in the face of soft consumer confidence and cost inflation.

But on the margin, with cocoa costs still elevated and pressure on net profits, investors should be mindful that...

Read the full narrative on Mondelez International (it's free!)

Mondelez International's narrative projects $42.7 billion revenue and $4.7 billion earnings by 2028. This requires 4.8% yearly revenue growth and a $1.1 billion increase in earnings from $3.6 billion today.

Uncover how Mondelez International's forecasts yield a $72.71 fair value, a 18% upside to its current price.

Exploring Other Perspectives

Private fair value estimates from the Simply Wall St Community range from US$69.83 to US$122.02 based on three independent analyses. As you consider these diverse views, remember that softer consumer confidence in key markets and rising input costs could play a critical role in Mondelez’s future outcomes, explore several viewpoints to see how other investors size up these challenges and opportunities.

Explore 3 other fair value estimates on Mondelez International - why the stock might be worth just $69.83!

Build Your Own Mondelez International Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Mondelez International research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Mondelez International research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Mondelez International's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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