PEP 8-K: Smart Summary

PepsiCo reported first-quarter 2026 results for the 12 weeks ended March 21, 2026, with net revenue of $19.4B, up 8.5% versus the prior year. EPS increased 27% to $1.70 and core EPS increased 9% to $1.61. The company affirmed its fiscal 2026 financial guidance, including organic revenue growth of 2–4% and core constant currency EPS growth of 4–6%.

• Net revenue: $19,443M vs. $17,919M prior year, +8.5% YoY (includes 3.4pp FX translation benefit, 2.6% organic revenue growth, and 2.5pp net benefit from acquisitions/divestitures)
• Organic revenue growth: +2.6% YoY
• Operating profit: $3,213M vs. $2,583M prior year, +24% YoY
• Operating margin: 16.5% vs. 14.4% prior year, +210 bps YoY
• Core operating profit: $3,050M vs. $2,789M prior year, +9% YoY; core operating margin 15.7% vs. 15.6%, +10 bps
• Net income attributable to PepsiCo: $2,327M vs. $1,834M prior year
• EPS (diluted): $1.70 vs. $1.33 prior year, +27% YoY
• Core EPS: $1.61 vs. $1.48 prior year, +9% YoY; core constant currency EPS +5%
• Net cash provided by/(used for) operating activities: $41M vs. ($973M) prior year

• PepsiCo Foods North America (PFNA): Reported net revenue $6,332M (+2% YoY); organic revenue +1%; core constant currency operating profit -5%; volume +2% (convenient foods)
• PepsiCo Beverages North America (PBNA): Reported net revenue $6,391M (+9% YoY); organic revenue +2%; core constant currency operating profit +7%; volume -2.5%
• International Beverages Franchise (IB Franchise): Reported net revenue $824M (+9% YoY); organic revenue +5%; core constant currency operating profit +14%; volume +0.5%
• Europe, Middle East and Africa (EMEA): Reported net revenue $2,823M (+18% YoY); organic revenue +7%; core constant currency operating profit +17%; convenient foods volume +9%, beverages volume +2%
• Latin America Foods (LatAm Foods): Reported net revenue $1,934M (+16% YoY); organic revenue +3%; core constant currency operating profit +7%; volume -2%
• Asia Pacific Foods: Reported net revenue $1,139M (+11% YoY); organic revenue +7%; core constant currency operating profit +30%; volume +9%

• Total cash returns to shareholders for fiscal 2026: approximately $8.9B, comprised of dividends of $7.9B and share repurchases of $1B
• Cash dividends paid in Q1 2026: $1,966M vs. $1,882M in Q1 2025
• Share repurchases in Q1 2026: $182M vs. $183M in Q1 2025
• Annualized dividend per share to increase 4% beginning with the June 2026 payment, representing the 54th consecutive annual increase
• Cash and cash equivalents at end of Q1 2026: $10,475M vs. $9,159M at fiscal year-end 12/27/2025
• Long-term debt obligations: $42,577M at 3/21/2026 vs. $42,321M at 12/27/2025
• Short-term debt obligations: $10,151M at 3/21/2026 vs. $6,861M at 12/27/2025
• Proceeds from issuances of long-term debt in Q1 2026: $2,964M; payments of long-term debt: $1,629M

• Ramon Laguarta, Chairman and CEO
  • "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."
  • "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."

• Organic revenue growth: between 2 and 4% for fiscal 2026
• Core constant currency EPS growth: between 4 and 6% for fiscal 2026
• Implied reported net revenue growth: within a range of 4 to 6% for fiscal 2026
• Implied core EPS growth: approximately 5 to 7% for fiscal 2026 (includes anticipated impact of global minimum tax regulations)
• Core annual effective tax rate: approximately 22%
• Capital spending: below 5% of net revenue
• Free cash flow conversion ratio: at least 80%
• Foreign exchange translation: approximately 1 percentage point tailwind to reported net revenue and core EPS growth based on current rates
• Acquisitions net of divestitures (from 2025 activity): expected to contribute 1 percentage point to reported net revenue growth in 2026