Mondelez International (MDLZ) appears broadly stable in Q4 with little sign of sequential improvement or deterioration despite ongoing macro pressures, while the fiscal 2026 setup appears more constructive, RBC Capital Markets said in a research note Friday.

The brokerage said US scanner data points to Q4 sales growth of about 0.7%, driven by stronger pricing that offset weaker volumes. Category trends were mixed, with improvement in crackers and non-chocolate candy balanced by slower growth in cookies and snack bars.

The investment firm noted that Mondelez delivered roughly 8% pricing in chocolate in Q3 to offset cocoa inflation. While RBC remains cautious given a fragile consumer backdrop, it said falling cocoa prices should help ease some pressure over time.

Cocoa prices have continued to trend lower, with spot prices approaching $4,000 per metric ton, representing a meaningful year-over-year improvement for Q4. RBC does not expect a material near-term margin benefit but said the decline supports a more favorable setup for fiscal 2026.

The company is likely to guide to high-single-digit EPS growth in fiscal 2026 and should be able to manage emerging-market headwinds through its revenue growth management capabilities and global footprint, according to the note.

The firm expects Mondelez to report Q4 net sales of about $10.28 billion and adjusted earnings of $0.70 per share, broadly in line with consensus.

RBC has an outperform rating on the company's stock with a $66 price target.

Shares of Mondelez were up nearly 2% in recent trading.

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