NASDAQ: PEP PEPSICO INC 8-K

PepsiCo reports Q2 2026 revenue up 6.4%, affirms full-year guidance

Filed July 9, 2026 · Period ending July 9, 2026 · ~1 min read

Key Changes

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Q2 net revenue rose 6.4% to $24.2B on 2.4% organic growth, 2.2-pt FX benefit, and 1.8-pt net acquisition contribution; core EPS up 4% to $2.20 on productivity gains and pricing, partially offset by operating cost increases.

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North American convenient foods gained volume share through innovation and affordability but saw net revenue decline on lower effective pricing; beverages delivered strong growth from 2025 acquisitions and organic gains.

Item 2.02 — Results of Operations and Financial Condition verify on EDGAR →
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International segments posted strong net revenue growth with organic volume gains in Asia Pacific Foods, International Beverages, Europe/Middle East/Africa, and sequential improvement in Latin America Foods.

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Affirmed fiscal 2026 guidance: 2-4% organic revenue growth, 4-6% core constant currency EPS growth, and $8.9B total shareholder returns ($7.9B dividends, $1.0B buybacks).

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CEO outlined strategic priorities to accelerate top-line growth through brand restaging, innovation in functional offerings, affordability initiatives, and elevated productivity to improve operating leverage.

Item 2.02 — Results of Operations and Financial Condition verify on EDGAR →

Summary

PepsiCo reported second-quarter 2026 results showing 6.4% net revenue growth to $24.2 billion, driven by 2.4% organic growth, favorable foreign exchange translation, and net acquisition benefits. Core earnings per share increased 4% to $2.20, reflecting productivity savings and effective pricing that partially offset operating cost pressures.

The company's North American convenient foods business gained volume market share through innovation and affordability initiatives, though net revenue declined due to lower effective pricing. The beverages segment delivered strong growth, aided by 2025 acquisitions.

International operations performed well across all regions, with organic volume gains in Asia Pacific, International Beverages, and Europe/Middle East/Africa, plus sequential improvement in Latin America. PepsiCo affirmed its full-year 2026 guidance, projecting 2-4% organic revenue growth and 4-6% core constant currency EPS growth. The company expects to return $8.9 billion to shareholders through $7.9 billion in dividends and $1.0 billion in share repurchases, while maintaining capital spending below 5% of net revenue and free cash flow conversion of at least 80%. Management outlined strategic priorities focused on accelerating top-line growth through brand restaging, innovation in emerging and functional offerings, and affordability initiatives, while elevating productivity to improve operating leverage. The quarter marked the company's highest global organic volume growth rate since 2022.

Section-by-Section Diff

Event · Item 2.02 — Results of Operations and Financial Condition

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PepsiCo disclosed Q2 2026 financial results for the 12 and 24 weeks ended June 13, 2026 via press release.

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Attached as Exhibit 99.1 and incorporated by reference into this Item 2.02 is a copy of the press release issued by PepsiCo, Inc. (“PepsiCo”), dated July 9, 2026, reporting PepsiCo’s financial results for the 12 and 24 weeks ended June 13, 2026.

PepsiCo announced its second quarter 2026 financial results covering the 12-week and 24-week periods ended June 13, 2026. The actual financial metrics are contained in the press release attached as Exhibit 99.1, which is furnished but not filed under Item 2.02.

Event · Exhibit 99.1

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Net revenue $24,181 $22,726 6.4% $43,624 $40,645 7.3% Organic revenue performance 2.4% 2.5% Operating profit $4,023 $1,789 125% $7,236 $4,372 65% Operating margin 16.6% 7.9% 875 bps 16.6% 10.8% 585 bps Core operating profit $4,067 $3,911 4% $7,117 $6,700 6% Core operating margin 16.8% 17.2% (40) bps 16.3% 16.5% (15) bps EPS $2.18 $0.92 137% $3.88 $2.25 72% Core EPS $2.20 $2.12 4% $3.81 $3.59 6%

PepsiCo reported second-quarter 2026 net revenue of $24.2 billion, up 6.4% year-over-year, driven by 2.4% organic revenue growth, a 2.2-percentage-point benefit from foreign exchange translation, and a 1.8-percentage-point net benefit from acquisitions and divestitures. Operating profit increased 125% to $4.0 billion, primarily due to prior-year impairment charges related to the Rockstar and Be & Cheery brands. Core EPS increased 4% to $2.20, reflecting productivity savings and effective net pricing, partially offset by certain operating cost increases. Year-to-date results showed similar trends with 7.3% net revenue growth and 6% core EPS growth.

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In North America, the convenient foods business gained volume market share aided by innovation and affordability initiatives. Convenient foods net revenue declined and primarily reflects lower effective net pricing. The beverages business delivered strong net revenue growth, primarily reflecting the benefits of acquisitions made in 2025 and organic growth. ... 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 Europe, Middle East and Africa and a sequential improvement in organic volume trends in Latin America Foods.

North American convenient foods gained volume market share through innovation and affordability initiatives, though net revenue declined due to lower effective net pricing. The North American beverages business delivered strong net revenue growth, primarily from 2025 acquisitions and organic growth. International segments performed well, with strong net revenue growth across Asia Pacific Foods, International Beverages Franchise, Europe/Middle East/Africa, and Latin America Foods, driven by organic volume growth.

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Looking ahead, we will continue to execute on our strategic priorities with a focus on accelerating top line growth – including the restaging of certain global brands, innovating with emerging, functional and permissible offerings and investing in certain affordability initiatives. We are also elevating productivity across the organization to improve operating leverage.

CEO Ramon Laguarta outlined strategic priorities focused on accelerating top-line growth through brand restaging, innovation in emerging and functional offerings, and affordability initiatives. The company is also elevating productivity across the organization to improve operating leverage. These initiatives aim to sustain growth momentum following the highest global organic volume growth rate since 2022.

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For 2026, the Company continues to expect: •Organic revenue to increase between 2 and 4 percent; •Core constant currency EPS to increase between 4 and 6 percent; •A core annual effective tax rate of approximately 22 percent; •Capital spending to be below 5 percent of net revenue; •A free cash flow conversion ratio of at least 80 percent; and •Total cash returns to shareholders of approximately $8.9 billion, comprised of dividends of $7.9 billion and share repurchases of $1.0 billion.

PepsiCo affirmed its full-year 2026 financial guidance, expecting organic revenue growth of 2-4%, core constant currency EPS growth of 4-6%, and a core effective tax rate of approximately 22%. The company expects capital spending below 5% of net revenue, free cash flow conversion of at least 80%, and total cash returns to shareholders of approximately $8.9 billion (comprising $7.9 billion in dividends and $1.0 billion in share repurchases). The guidance implies net revenue growth of 4-6% and core EPS growth of approximately 5-7% for fiscal 2026.