Business
PepsiCo : Q2 2026 Press Release
PepsiCo : Q2 2026 Press
About this update from Pepsico, Inc.
PepsiCo Reports Second-Quarter 2026 Results Second-Quarter and Year-to-Date Results 1 Net revenue increased 6.4% and 7.3%, respectively Organic revenue 2 increased 2.4% and 2.5%, respectively Earnings per share (EPS) increased 137% and 72%, respectively Core 2 EPS increased 4% and 6%, respectively Core constant currency 2 EPS increased 1% and 3%, respectively Guidance Company affirms fiscal 2026 financial guidance 2 PURCHASE, N.Y. - July 9, 2026 - PepsiCo, Inc. (NASDAQ: PEP) today reported results for second-quarter 2026. "Our second quarter results featured strong organic volume and net revenue growth for the global convenient foods and global beverages businesses. Year-to-date, PepsiCo's global organic volume has increased at the highest rate since 2022 - aided by the strength of the international business and the continued evolution of the portfolio to offer more choices through portion control varieties, diverse ingredients, functional benefits such as hydration, protein and fiber, energy and zero sugar beverage varieties," said Chairman and CEO, Ramon Laguarta. Laguarta continued, "Looking ahead, we will continue to execute on our strategic priorities with a focus on accelerating top line growth - including the restaging of certain global brands, innovating with emerging, functional and permissible offerings and investing in certain affordability initiatives. We are also elevating productivity across the organization to improve operating leverage." Second-Quarter Year-to-Date ($ in millions, except EPS) Q2 2026 Q2 2025 Change Q2 2026 Q2 2025 Change Net revenue $24,181 $22,726 6.4% $43,624 $40,645 7.3% Organic revenue performance 2.4% 2.5% Operating profit $4,023 $1,789 125% $7,236 $4,372 65% Operating margin 16.6% 7.9% 875 bps 16.6% 10.8% 585 bps Core operating profit $4,067 $3,911 4% $7,117 $6,700 6% Core operating margin 16.8% 17.2% (40) bps 16.3% 16.5% (15) bps EPS $2.18 $0.92 137% $3.88 $2.25 72% Core EPS $2.20 $2.12 4% $3.81 $3.59 6% Core constant currency EPS 1% 3% 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 and 24 weeks ended June 13, 2026 (Q2 2026 Form 10-Q) filed with the Securities and Exchange Commission (SEC) for additional information regarding PepsiCo's financial results. Second-Quarter Results Discussion Net revenue increased 6.4% due to 2.4% organic revenue growth, a 2.2-percentage-point benefit from foreign exchange translation and a 1.8-percentage-point net benefit from acquisitions and divestitures. Organic revenue growth reflects the benefits associated with effective net pricing and a contribution from organic volume growth. In North America, the convenient foods business gained volume market share aided by innovation and affordability initiatives. Convenient foods net revenue declined and primarily reflects lower effective net pricing. The beverages business delivered strong net revenue growth, primarily reflecting the benefits of acquisitions made in 2025 and organic growth. The international businesses performed well with each segment delivering strong net revenue growth - aided by organic volume growth within Asia Pacific Foods, International Beverages Franchise and Europe, Middle East and Africa and a sequential improvement in organic volume trends in Latin America Foods. Operating profit increased 125% and operating margin expanded 875 basis points, reflecting prior-year impairment charges related to the Rockstar and Be & Cheery brands, lower restructuring charges and a favorable net impact of acquisition and divestiture-related charges/credits. Core operating profit increased 4%, with core operating margin contracting 40 basis points. The core operating profit performance was primarily driven by productivity savings and effective net pricing, partially offset by certain operating cost increases. EPS increased 137% and core EPS increased 4%, primarily driven by operating profit growth. Year-to-Date Results Discussion Net revenue increased 7.3% due to a 2.7-percentage-point benefit from foreign exchange translation, 2.5% organic revenue growth and a 2.1-percentage-point net benefit from acquisitions and divestitures. Organic revenue growth reflects the benefits associated with effective net pricing and a contribution from organic volume growth. In North America, organic volume and volume market share increased for the convenient foods business aided by innovation and affordability initiatives. Convenient foods net revenue grew slightly, reflecting organic volume growth and benefits of an acquisition, offset by lower effective net pricing. The beverages business delivered strong net revenue growth, primarily reflecting acquisitions made in 2025 and organic growth. The international businesses performed well with each segment delivering strong net revenue growth - aided by organic volume growth within Asia Pacific Foods, Europe, Middle East and Africa and International Beverages Franchise. Operating profit increased 65% and operating margin expanded 585 basis points, reflecting prior-year impairment charges related to the Rockstar and Be & Cheery brands, a favorable net impact of acquisition and divestiture-related charges/credits and lower restructuring charges. Core operating profit increased 6%, with core operating margin contracting 15 basis points. The core operating profit performance was primarily driven by productivity savings and effective net pricing, partially offset by certain operating cost increases. EPS increased 72% and core EPS increased 6%, primarily driven by operating profit growth. Summary Second-Quarter 2026 Performance Revenue Volume (a) GAAP Reported % Change Percentage Point Impact Organic % Change % Change Foreign Exchange Translation Acquisitions and Divestitures Convenient Foods Beverages PepsiCo Foods North America (PFNA) (2) - - (2) - PepsiCo Beverages North America (PBNA) 7 - (6) 1 (4) International Beverages Franchise (IB Franchise) 11 (2) - 9 5 Europe, Middle East and Africa (EMEA) 10 (3) - 6 4 1 Latin America Foods (LatAm Foods) 15 (11) - 4 - Asia Pacific Foods 12 (3) - 9 10 Total 6 (2) (2) 2 3 2 Operating Profit and EPS GAAP Reported % Change Percentage Point Impact Core Constant Currency % Change Items Affecting Comparability Foreign Exchange Translation PFNA (3.5) (4.5) - (8) PBNA n/m n/m - - IB Franchise 19 - (2) 17 EMEA 103 (86) (3) 14 LatAm Foods 16 (2) (13) 1 Asia Pacific Foods n/m n/m (3) 41 Corporate unallocated expenses 23 (10) - 12 Total 125 (121) (3) 1 EPS 137 (133) (3) 1 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. n/m - Not meaningful due to the impact of prior-year impairment and other charges. 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." Summary Year-to-Date 2026 Performance Revenue Volume (a) GAAP Reported % Change Percentage Point Impact Organic % Change % Change Foreign Exchange Translation Acquisitions and Divestitures Convenient Foods Beverages PFNA - - - (0.5) 1 PBNA 8 - (6) 1 (3) IB Franchise 10 (3) - 8 3 EMEA 13 (6) - 6 6 1 LatAm Foods 16 (12) - 4 (1) Asia Pacific Foods 12 (3) - 8 10 Total 7 (3) (2) 2.5 3 1 Operating Profit and EPS GAAP Reported % Change Percentage Point Impact Core Constant Currency % Change Items Affecting Comparability Foreign Exchange Translation PFNA (5) (1) - (6) PBNA n/m n/m - 2.5 IB Franchise 18 0.5 (3) 16 EMEA 74 (54) (5) 15 LatAm Foods 19 (2) (14) 3 Asia Pacific Foods 103 (64) (5) 34 Corporate unallocated expenses (15) 17 - 2 Total 65 (59) (3) 3 EPS 72 (66) (3) 3 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 BCS and 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. n/m - Not meaningful due to the impact of prior-year impairment and other charges. 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. Prepared Management Remarks and Live Question and Answer Webcast At approximately 6:00 a.m. (Eastern time) on July 9, 2026, the Company will post prepared management remarks (in pdf format) regarding its first quarter results and business update, including its outlook for 2026, at https://www.pepsico.com/investors . At 8:15 a.m. (Eastern time) on July 9, 2026, the Company will host a live question and answer session with investors and financial analysts. Further details will be accessible on the Company's website at https://www.pepsico.com/investors . Contacts: Investor Relations Communications [email protected] [email protected]