Results
Third-Quarter and Year-to-Date Results 1
Net revenue increased 5.6% and 6.7%, respectively
Organic revenue 2 increased 3.1% and 2.7%, respectively
Earnings per share (EPS) increased 17% and 47%, respectively
Core 2 EPS increased 2% and 5%, respectively
Core constant currency 2 EPS increased 1.5% and 2%, respectively
Outlook
Guidance
Company updates fiscal 2026 financial guidance 2
Management commentary
“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.”
Outlook
1 Versus the prior year.
Third-Quarter Results Discussion
Results
8Net 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.
7Operating 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.
6The 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.
5The 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.
Summary Third-Quarter 2026 Performance
Summary Year-to-Date 2026 Performance
Outlook
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)
CurrentPrevious
Organic RevenueApproximately +3%+2% to +4%
4Foreign Exchange Translation (a)Approximately +1.5% to net revenue and core EPS growthApproximately +1% to net revenue and core EPS growth
3Acquisitions, net of Divestitures (b)Approximately +1.5% to net revenue growthApproximately +1% to net revenue growth
Net RevenueApproximately +6%+4% to +6%
Core Annual Effective Tax Rate (c)Approximately 21%Approximately 22%
1Core Constant Currency EPS+1% to +2%Low-end of +4% to +6%Guidance lowered
2Core EPS+2.5% to +3.5%Low-end of +5% to +7%Guidance lowered
Capital SpendingBelow 5% of net revenueBelow 5% of net revenue
Free Cash Flow Conversion RatioAt least 80 percentAt least 80 percentGuidance reaffirmed
Capital return
Cash Returns to Shareholders (d)$8.9 billion$8.9 billion
Corporate events
(b) Refers to acquisitions, net of divestitures, that occurred in 2025.
Outlook
(c) Includes the anticipated impact of global minimum tax regulations.
Capital return
(d) Comprised of dividends of $7.9 billion and share repurchases of $1.0 billion.
Outlook
PepsiCo, Inc. and Subsidiaries
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