PepsiCo reports stronger first-quarter 2026 results and reaffirms full-year guidance

PepsiCo Inc. (NASDAQ: PEP), a leading global food and beverage company with a portfolio that includes iconic brands such as Pepsi, Lay’s, Gatorade, Quaker, and Doritos has reported results for first-quarter 2026.

Ramon Laguarta, Chairman and CEO of PepsiCo:

"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."

First-Quarter Results Discussion

• Net revenue increased 8.5% due to a 3.4-percentage-point benefit from foreign exchange translation, 2.6% organic revenue growth, and a 2.5-percentage-point net benefit from acquisitions and divestitures. Organic revenue growth reflects the benefits associated with effective net pricing and a slight contribution from organic volume growth.
  •  In North America, PepsiCo Foods and PepsiCo Beverages delivered a sequential acceleration in reported net revenue and organic revenue growth. PepsiCo Foods delivered volume growth as innovation and affordability initiatives began to take hold. PepsiCo Beverages volume trends also improved sequentially and versus the prior year.
  • The international businesses performed well with each segment delivering a sequential acceleration in net revenue growth. Organic revenue growth was aided by good performance in Asia Pacific Foods; Europe, Middle East and Africa; and International Beverages Franchise while Latin America Foods remained resilient.
• Operating profit increased 24% and operating margin expanded 210 basis points. This reflects a core operating profit increase of 9%, with core operating margin expansion of 10 basis points, a favorable impact of net mark-to-market gains on commodity derivatives and a favorable net impact of acquisition and divestiture-related charges/ credits. Core operating profit performance was primarily driven by productivity savings, net revenue growth and a 4-percentage-point benefit from foreign exchange translation, partially offset by certain operating cost increases.
• EPS increased 27% and core EPS increased 9%, primarily driven by the operating profit growth.

Summary First-Quarter 2026 Performance