Pepsi Publish Q1 2026 Results

PepsiCo Reports First-Quarter 2026 Results¹

• Net revenue increased 8.5% and organic revenue² increased 2.6%
• Earnings per share (EPS) increased 27%
• Core² EPS increased 9%
• Core constant currency² EPS increased 5%
• Company affirms fiscal 2026 financial guidance²

PURCHASE, N.Y. – April 16, 2026 – PepsiCo, Inc. (NASDAQ: PEP) today reported results for first-quarter 2026.

“We are pleased with our first-quarter results, which featured an acceleration in both net revenue and organic revenue growth – with a notable improvement in convenient foods organic volume. An extensive commercial agenda, which includes the restaging of large global brands, innovation activity and certain affordability initiatives, is being executed well and business performance improved,” said Chairman and CEO, Ramon Laguarta.

Laguarta continued, “We are encouraged with the resilience of the International business while North America continued to make progress in the first quarter. As we look ahead, we aim to successfully execute our commercial plans and tightly manage costs to help fund investments to accelerate growth. Therefore, we are affirming fiscal 2026 financial guidance and expected cash returns to shareholders – including the previously announced 4 percent increase in the annualized dividend per share beginning with the June 2026 payment, which will represent our 54th consecutive annual increase.”

First-Quarter Results Discussion

($ in millions, except EPS)	Q1 2026	Q1 2025	Change
Net revenue	$19,443	$17,919	8.5%
Organic revenue performance			2.6%
Operating profit	$3,213	$2,583	24%
Operating margin	16.5%	14.4%	210 bps
Core operating profit	$3,050	$2,789	9%
Core operating margin	15.7%	15.6%	10 bps
EPS	$1.70	$1.33	27%
Core EPS	$1.61	$1.48	9%
Core constant currency EPS			5%

1 Versus the prior year.

2 Please refer to the reconciliation of generally accepted accounting principles (GAAP) and non-GAAP information in the attached exhibits and to the Glossary for the definitions of non-GAAP financial measures, including “Organic revenue performance,” “Core” and “Constant currency,” and to “Guidance and Outlook” for additional information regarding PepsiCo’s full-year 2026 financial guidance. PepsiCo provides guidance on a non-GAAP basis as we cannot predict certain elements which are included in reported GAAP results, including the impact of foreign exchange and commodity mark-to-market net impacts. Please refer to PepsiCo’s Quarterly Report on Form 10-Q for the 12 weeks ended March 21, 2026 (Q1 2026 Form 10-Q) filed with the Securities and Exchange Commission (SEC) for additional information regarding PepsiCo’s financial results.

• Net revenue increased 8.5% due to a 3.4-percentage-point benefit from foreign exchange translation, 2.6% organic revenue growth, and a 2.5-percentage-point net benefit from acquisitions and divestitures. Organic revenue growth reflects the benefits associated with effective net pricing and a slight contribution from organic volume growth.
  • In North America, PepsiCo Foods and PepsiCo Beverages delivered a sequential acceleration in reported net revenue and organic revenue growth. PepsiCo Foods delivered volume growth as innovation and affordability initiatives began to take hold. PepsiCo Beverages volume trends also improved sequentially and versus the prior year.
  • The international businesses performed well with each segment delivering a sequential acceleration in net revenue growth. Organic revenue growth was aided by good performance in Asia Pacific Foods; Europe, Middle East and Africa; and International Beverages Franchise while Latin America Foods remained resilient.

• Operating profit increased 24% and operating margin expanded 210 basis points. This reflects a core operating profit increase of 9%, with core operating margin expansion of 10 basis points, a favorable impact of net mark-to-market gains on commodity derivatives and a favorable net impact of acquisition and divestiture-related charges/ credits. Core operating profit performance was primarily driven by productivity savings, net revenue growth and a 4-percentage-point benefit from foreign exchange translation, partially offset by certain operating cost increases.

• EPS increased 27% and core EPS increased 9%, primarily driven by the operating profit growth.

Summary First-Quarter 2026 Performance

	GAAP Reported % Change	Revenue Percentage Point Impact		Organic % Change	Volume(a) % Change
		Foreign Exchange Translation	Acquisitions & Divestitures		Convenient Foods	Beverages
PepsiCo Foods North America (PFNA)	2	–	(1)	1	2	–
PepsiCo Beverages North America (PBNA)	9	–	(7)	2	–	(2.5)
International Beverages Franchise (IB Franchise)	9	(4)	–	5	–	0.5
Europe, Middle East and Africa (EMEA)	18	(12)	–	7	9	2
Latin America Foods (LatAm Foods)	16	(13)	–	3	(2)	–
Asia Pacific Foods	11	(4)	–	7	9	–
Total	9	(3)	(2.5)	3	4	–

	GAAP Reported % Change	Operating Profit & EPS Percentage Point Impact		Core Constant Currency % Change
		Items Affecting Comparability	Foreign Exchange Translation
PFNA	(7)	2.5	–	(5)
PBNA	60	(53)	–	7
IB Franchise	16	2	(4)	14
EMEA	27	3	(12)	17
LatAm Foods	24	(1)	(16)	7
Asia Pacific Foods	36	(1)	(6)	30
Corporate unallocated expenses	(53)	45	–	(8)
Total	24	(15)	(4)	5
EPS	27	(18)	(4)	5

(a) Excludes the impact of acquisitions and divestitures. In certain instances, the volume change shown here differs from the impact of organic volume change on net revenue performance disclosed in the Organic Revenue Performance table on page A-7, due to the impacts of product mix, nonconsolidated joint venture volume, and, for our franchise beverage businesses, temporary timing differences between bottler case sales (BCS) and concentrate shipments and equivalents (CSE). We report net revenue from our franchise beverage businesses based on CSE. The volume sold by our nonconsolidated joint ventures has no direct impact on our net revenue.

Note: Amounts may not sum due to rounding.

Organic revenue and core constant currency results are non-GAAP financial measures. Please refer to the reconciliation of GAAP and non-GAAP information in the attached exhibits and to the Glossary for definitions of “Organic revenue performance,” “Core” and “Constant currency.”

Fiscal 2026 Guidance and Outlook

The Company provides guidance on a non-GAAP basis as we cannot predict certain elements which are included in reported GAAP results, including the impact of foreign exchange translation and commodity mark-to-market net impacts.

For 2026, the Company continues to expect:

• Organic revenue to increase between 2 and 4 percent;
• Core constant currency EPS to increase between 4 and 6 percent;
• A core annual effective tax rate of approximately 22 percent;
• Capital spending to be below 5 percent of net revenue;
• A free cash flow conversion ratio of at least 80 percent; and
• Total cash returns to shareholders of approximately $8.9 billion, comprised of dividends of $7.9 billion and share repurchases of $1.0 billion.

The Company also continues to expect a foreign exchange translation tailwind of approximately 1 percentage point to benefit reported net revenue and core EPS growth, based on current foreign exchange rates. In addition, acquisitions, net of divestitures, that occurred in 2025 are expected to contribute 1 percentage point to reported net revenue growth in 2026.

The assumptions and the guidance above imply net revenue growth within a range of 4 to 6 percent and core EPS growth of approximately 5 to 7 percent in fiscal 2026, which includes the anticipated impact of global minimum tax regulations.