Q3 2026 Press Release

• Net revenue increased 5.6% and 6.7%, respectively

• Organic revenue2 increased 3.1% and 2.7%, respectively

• Earnings per share (EPS) increased 17% and 47%, respectively

• Core2 EPS increased 2% and 5%, respectively

• Core constant currency2 EPS increased 1.5% and 2%, respectively

  Guidance

• Company updates fiscal 2026 financial guidance2

  PURCHASE, N.Y. - October 8, 2026 - PepsiCo, Inc. (NASDAQ: PEP) today reported results for third-quarter 2026.

  "Our third-quarter results featured strong net revenue growth, an acceleration in organic revenue growth with organic volume growth across both global beverages and convenient foods. The results reflect the scale and resilience of the international business, the ongoing evolution of the global portfolio and an improved presence in underpenetrated channels and occasions," said Chairman and CEO Ramon Laguarta.

  Laguarta continued, "Looking ahead, we remain focused on building upon the strength of the International business while acting with urgency to sustainably improve our performance in North America through more investments in innovation, effective brand building, and sharper marketplace execution by channel. Additional structural cost reduction actions are being identified and will be implemented in the coming months to help fund investments that aim to accelerate organic revenue growth and mitigate the impacts of rising input cost inflation."

  Third-Quarter Year-to-Date

  ($ in millions, except EPS)	Q3 2026	Q3 2025	Change	Q3 2026	Q3 2025	Change
  Net revenue	$25,274	$23,937	5.6%	$68,898	$64,582	6.7%
  Organic revenue performance			3.1%			2.7%
  Operating profit	$4,260	$3,569	19%	$11,496	$7,941	45%
  Operating margin	16.9%	14.9%	195 bps	16.7%	12.3%	440 bps
  Core operating profit	$4,277	$4,137	3%	$11,394	$10,837	5%
  Core operating margin	16.9%	17.3%	(35) bps	16.5%	16.8%	(25) bps
  EPS	$2.23	$1.90	17%	$6.10	$4.15	47%
  Core EPS	$2.34	$2.29	2%	$6.15	$5.88	5%
  Core constant currency EPS			1.5%			2%

  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 36 weeks ended September 5, 2026 (Q3 2026 Form 10-Q) filed with the Securities and Exchange Commission (SEC) for additional information regarding PepsiCo's financial results.

  Third-Quarter Results Discussion

• Net revenue increased 5.6% due to 3.1% organic revenue growth, a 1.7-percentage-point net benefit from acquisitions and divestitures and a 0.7-percentage-point benefit from foreign exchange translation. Organic revenue growth reflects the benefits associated with effective net pricing and a contribution from organic volume growth.

  • In North America, convenient foods net revenue trends improved sequentially, reflecting savory snacks volume growth and volume market share improvement, offset by lower effective net pricing. The beverages business delivered 5 percent net revenue growth, primarily reflecting the benefits of acquisitions made in 2025.

  • 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 Latin America Foods.

• Operating profit increased 19% and operating margin expanded 195 basis points, primarily reflecting a favorable net impact of acquisition and divestiture-related charges/ credits and a favorable impact of net mark-to-market gains on commodity derivatives. Core operating profit increased 3%, with core operating margin contracting 35 basis points. The core operating profit performance reflects productivity savings, effective net pricing and a 4-percentage-point favorable impact of tariff refunds. These impacts were partially offset by certain operating cost increases and higher advertising and marketing expenses.

• EPS increased 17% and core EPS increased 2%, primarily driven by operating profit growth.

  Year-to-Date Results Discussion

• Net revenue increased 6.7% due to 2.7% organic revenue growth, a 2.0-percentage-point benefit from foreign exchange translation and a 2.0-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 convenient foods, organic volume and volume market share increased aided by innovation and affordability initiatives. Convenient foods net revenue reflects organic volume growth and the benefits of an acquisition, offset by lower effective net pricing. The beverages business delivered 7 percent net revenue growth, primarily reflecting the benefits of acquisitions made in 2025 with organic revenue growth increasing 1 percent.

  • 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 EMEA.

• Operating profit increased 45% and operating margin expanded 440 basis points, primarily reflecting prior-year impairment charges related to the Rockstar and Be & Cheery brands and a favorable net impact of acquisition and divestiture-related charges/ credits. Core operating profit increased 5%, with core operating margin contracting 25 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 47% and core EPS increased 5%, primarily driven by operating profit growth.

Revenue Volume(a)

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.

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."

Revenue Volume(a)

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 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.

   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."

   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. PepsiCo's current and previous fiscal 2026 outlook is summarized below.

   Fiscal 2026 Guidance (changes are bolded & italicized below)

   	Current	Previous
   Organic Revenue	Approximately +3%	+2% to +4%
   Foreign Exchange Translation (a)	Approximately +1.5% to net revenue and core EPS growth	Approximately +1% to net revenue and core EPS growth
   Acquisitions, net of Divestitures (b)	Approximately +1.5% to net revenue growth	Approximately +1% to net revenue growth
   Net Revenue	Approximately +6%	+4% to +6%
   Core Annual Effective Tax Rate (c)	Approximately 21%	Approximately 22%
   Core Constant Currency EPS	+1% to +2%	Low-end of +4% to +6%
   Core EPS	+2.5% to +3.5%	Low-end of +5% to +7%
   Capital Spending	Below 5% of net revenue	Below 5% of net revenue
   Free Cash Flow Conversion Ratio	At least 80 percent	At least 80 percent
   Cash Returns to Shareholders (d)	$8.9 billion	$8.9 billion

   1. Assumptions are based on current foreign exchange rates, as we are unable to predict the impact of exchange translation rates.

   2. Refers to acquisitions, net of divestitures, that occurred in 2025.

   3. Includes the anticipated impact of global minimum tax regulations.

   4. Comprised of dividends of $7.9 billion and share repurchases of $1.0 billion.

At approximately 6:00 a.m. (Eastern time) on October 8, 2026, the Company will post prepared management remarks (in pdf format) regarding its third quarter results and business update, including its outlook for 2026, at https://www.pepsico.com/investors. At 8:15 a.m. (Eastern time) on October 8, 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 investor@pepsico.com pepsicomediarelations@pepsico.com