PepsiCo Inc

Latest Results (02.06.2026):

PepsiCo, Inc. reported results for first-quarter 2026 (Q1 2026). Net revenue was $19,443 million, up 8.5% year-over-year, driven by a 3.4‑percentage‑point foreign‑exchange translation tailwind, 2.6% organic revenue growth and a 2.5‑point benefit from acquisitions/divestitures. GAAP diluted EPS was $1.70, up 27%, and core EPS was $1.61, up 9% (core constant‑currency EPS +5%). The company affirmed its full‑year 2026 guidance and its planned shareholder returns.

Top‑line and organic growth

Net revenue rose 8.5% to $19.44 billion. Organic revenue performance was +2.6%, with effective net pricing the main contributor and a modest improvement in organic volume (including sequential improvement in North America convenient foods and beverage volumes). Foreign exchange added about 3.4 percentage points and acquisitions/divestitures added ~2.5 points to reported growth.

Profitability and EPS

Operating profit increased 24% to $3,213 million and operating margin expanded 210 basis points to 16.5%. Core operating profit was $3,050 million (+9%) and core operating margin was 15.7% (+10 bps). GAAP diluted EPS was $1.70 (+27%); core EPS was $1.61 (+9%) and core constant‑currency EPS increased 5%.

Drivers of results

Core profit gains were driven by productivity savings, net revenue growth and favorable mark‑to‑market commodity derivative impacts; these were partially offset by certain operating cost increases. FX translation provided a meaningful tailwind to reported results.

Regional performance

North America showed sequential acceleration in reported and organic revenue growth—PepsiCo Foods delivered volume growth aided by innovation and affordability initiatives and PepsiCo Beverages saw improving volume trends. International segments also accelerated, with strong showings in Asia Pacific Foods, EMEA and the International Beverages Franchise; Latin America Foods remained resilient.

Cash flow and balance sheet highlights

Net cash provided by operating activities improved to $41 million for the quarter (vs. a use of $973 million prior year). Capital spending was $447 million. Cash and cash equivalents and restricted cash ended the quarter at $10,551 million (up from $8,319 million a year earlier). Total debt and liquidity items are reflected on the balance sheet with long‑term debt of $42,577 million.

Guidance and shareholder returns

The company affirmed its 2026 guidance: organic revenue growth of 2–4%, core constant‑currency EPS growth of 4–6%, core annual effective tax rate ~22%, capex <5% of net revenue, free cash flow conversion ≥80%, and total cash returns to shareholders of about $8.9 billion (≈$7.9B dividends and $1.0B share repurchases). PepsiCo also reiterated a previously announced 4% increase in the annualized dividend beginning June 2026 (its 54th consecutive annual increase).