PepsiCo Q1 2026: Revenue +9%, margin expands 210bp to 16.5% on FX tailwinds and productivity

Filed April 16, 2026 · Period ending March 21, 2026 · Compared to 10-Q Apr 24, 2025 · ~1 min read

Key Changes

• high

  Operating margin expanded 210 basis points to 16.5% as operating profit surged 24% to $3.2B, driven by productivity savings, favorable commodity derivative marks, and FX tailwinds reversing prior-year headwinds.

  MD&A: Operating Performance verify on EDGAR →
• high

  Foreign exchange swung from 3-point headwind to 3-point tailwind (Mexican peso, Russian ruble, euro appreciation), contributing materially to 9% revenue growth and margin expansion.

  MD&A: FX Impact verify on EDGAR →
• high

  Supreme Court invalidated certain tariffs, creating uncertainty around potential refunds while Administration initiated new tariffs—introduces both upside (refunds) and downside (new levies) for input costs.

  MD&A: Tariff Uncertainty verify on EDGAR →