PepsiCo Inc

Latest Results (14.07.2026):

PepsiCo Inc — Second quarter (Q2) 2026: PepsiCo reported solid top-line growth and much stronger GAAP profitability versus the prior year. Q2 net revenue rose 6.4% to $24,181 million (organic revenue +2.4%), GAAP diluted EPS was $2.18 (up 137%) and core EPS was $2.20 (up 4%). The company affirmed its full‑year 2026 guidance and highlighted volume strength across its global convenient foods and beverages businesses while continuing to focus on productivity and margin improvement.

Revenue and organic growth

Q2 net revenue: $24,181M (+6.4% year-over-year). Organic revenue growth (non‑GAAP) was +2.4% in Q2 and +2.5% year‑to‑date, driven by effective net pricing and contributions from organic volume.

Profitability (GAAP vs. core)

Q2 operating profit: $4,023M (+125%) and operating margin 16.6% (up 875 bps vs. Q2 2025). Core operating profit (non‑GAAP) was $4,067M (+4%) with a core operating margin of 16.8% (down 40 bps). The large GAAP margin improvement reflects prior-year impairment charges and other comparability items.

Earnings per share

Q2 diluted GAAP EPS was $2.18 (up 137% YoY). Q2 core EPS (non‑GAAP) was $2.20 (+4% YoY); core constant‑currency EPS rose 1% in Q2.

Volume, regional performance and product mix

PepsiCo reported strong organic volume growth globally (the highest year‑to‑date organic volume since 2022), with international businesses and certain portfolio choices (portion control, functional offerings, zero‑sugar varieties) cited as drivers. North America convenient foods gained volume market share but faced lower effective net pricing; beverages benefited from 2025 acquisitions plus organic growth.

Guidance and outlook

The company affirmed fiscal 2026 guidance: organic revenue growth of 2–4%; core constant‑currency EPS growth of 4–6%; core annual effective tax rate ≈22%; capital spending below 5% of net revenue; free cash flow conversion ≥80%; and total cash returns to shareholders of ≈$8.9B (≈$7.9B dividends and $1.0B share repurchases). Management expects roughly a 1 percentage‑point FX tailwind and ~1pp benefit from acquisitions to reported net revenue.

Cash flow and balance sheet highlights

For the 24 weeks ended June 13, 2026, net cash provided by operating activities was $2,365M; capital spending was $1,266M. Cash and cash equivalents were ~$10.3B at period end (reported balances: $10,303M cash & equivalents and restricted cash; cash-only $10,251M on the balance sheet).

Shareholder returns and capital deployment

YTD cash dividends paid were $3,914M and share repurchases were $479M. Full‑year cash return guidance totals ~ $8.9B (dividends ~$7.9B; repurchases ~$1.0B).

Comparability and non‑GAAP context

PepsiCo uses non‑GAAP measures (core, organic, constant currency) to describe performance. Q2 GAAP results benefited materially from the absence of prior‑year impairment charges (Rockstar and Be & Cheery), so core measures provide additional context on underlying trends.