Q1 revenue up 8.2% but Adjusted EPS falls 14.9% on cocoa costs and margin compression

Filed April 28, 2026 · Period ending March 31, 2026 · Compared to 10-Q Apr 29, 2025 · ~2 min read

Key Changes

• high

  Adjusted Operating Income margin compressed 310 basis points to 11.7% (from 14.8% prior year) on elevated cocoa costs, unfavorable product mix, and higher advertising spend, despite productivity gains and pricing actions.

  MD&A: Operating Income margin verify on EDGAR →
• high

  Adjusted EPS declined 14.9% constant-currency to $0.63, driven by margin compression and higher taxes, partially offset by lower mark-to-market derivative losses ($274M vs. $673M prior year) and fewer shares outstanding.

  MD&A: Adjusted EPS verify on EDGAR →
• high

  Operating cash flow fell 57% to $467M (from $1,092M prior year) on lower cash-basis earnings and unfavorable working capital movements, while commercial paper borrowings doubled to $3.4B average daily balance.

  MD&A: Cash Flow verify on EDGAR →