PEP · 10-Q · 2026Q2 · Full report
Operating Margin Drivers
PEPSICO INC · 2026-07-09 · Importance 83 · Surprise 82 · No source text
Operating profit increased to $4,023 million in the 12 weeks ended June 13, 2026 (up 125% year‑over‑year) driven primarily by prior‑year impairment charges related to the Rockstar and Be & Cheery brands, productivity savings, effective net pricing, lower restructuring charges and a favorable net impact of acquisition/divestiture items.,For the 24 weeks ended June 13, 2026 operating profit rose to $7,236 million versus $4,372 million a year earlier (up 65%), with the same primary drivers cited: prior‑year impairments, productivity savings, effective net pricing and favorable acquisition/divestiture impacts, partially offset by operating cost increases.,Operating margin expanded to 16.6% in the 12 weeks ended June 13, 2026 (versus 7.9% prior year) and to 16.6% for the 24 weeks (versus 10.8% prior year), reflecting the net effect of the listed drivers and lower restructuring charges.
Key facts
- Consolidated operating profit for the 12 weeks ended June 13, 2026 was $4,023 and for the 12 weeks ended June 14, 2025 was $1,789. source
- Consolidated operating profit for the 24 weeks ended June 13, 2026 was $7,236 and for the 24 weeks ended June 14, 2025 was $4,372. source
- Consolidated operating margin for the 12 weeks ended June 13, 2026 was 16.6% and for the 12 weeks ended June 14, 2025 was 7.9%. source
- Consolidated operating margin for the 24 weeks ended June 13, 2026 was 16.6% and for the 24 weeks ended June 14, 2025 was 10.8%. source
- Core, non-GAAP operating profit for PFNA for the 12 weeks ended June 13, 2026 was $1,369. source
- Reported, GAAP operating profit for PFNA for the 12 weeks ended June 13, 2026 was $1,342. source
- Reported, GAAP operating profit total for the 12 weeks ended June 13, 2026 was $4,023 and corporate unallocated expenses were $(503). source
- For the 24 weeks ended June 13, 2026 reported, GAAP selling, general and administrative expenses were $16,606 and operating profit was $7,236. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | negative | realized | -68.7% | For the 24 weeks ended June 13, 2026 reported, GAAP selling, general and administrative expenses were $16,606 and operating profit was… |
| operating_income | positive | realized | +11.8% | Consolidated operating profit for the 24 weeks ended June 13, 2026 was $7,236 and for the 24 weeks ended June 14, 2025 was $4,372. |
| operating_income | positive | realized | +9.2% | Consolidated operating profit for the 12 weeks ended June 13, 2026 was $4,023 and for the 12 weeks ended June 14, 2025 was $1,789. |
| margin | positive | realized | +8.7% | Consolidated operating margin for the 12 weeks ended June 13, 2026 was 16.6% and for the 12 weeks ended June 14, 2025 was 7.9%. |
| margin | positive | realized | +5.8% | Consolidated operating margin for the 24 weeks ended June 13, 2026 was 16.6% and for the 24 weeks ended June 14, 2025 was 10.8%. |
| operating_income | negative | realized | -2.1% | Reported, GAAP operating profit total for the 12 weeks ended June 13, 2026 was $4,023 and corporate unallocated expenses were $(503). |
| operating_income | positive | realized | — | Core, non-GAAP operating profit for PFNA for the 12 weeks ended June 13, 2026 was $1,369. |
| operating_income | positive | realized | — | Reported, GAAP operating profit for PFNA for the 12 weeks ended June 13, 2026 was $1,342. |