PEP · 10-Q · 2026Q2 · Full report

Free Cash Flow

PEPSICO INC · 2026-07-09 · Importance 77 · Surprise 82

PepsiCo reconciles GAAP operating cash flow to free cash flow and reported free cash flow of $1,170 million for the 24 weeks ended June 13, 2026, versus negative $342 million in the prior-year period, a large year-over-year swing. The table shows net cash provided by operating activities of $2,365 million and capital spending of $1,266 million for the period. Management states it uses free cash flow primarily for acquisitions and financing activities, including debt repayments, dividends and share repurchases. The company expects to continue returning free cash flow to shareholders while maintaining Tier 1 commercial paper access to preserve financial flexibility.

Key facts

• Free cash flow is defined as net cash from operating activities less capital spending, plus sales of property, plant and equipment. source
• For the 24 weeks ended June 13, 2026, the reconciliation table shows Net cash provided by operating activities of $2,365, capital spending of (1,266), and Free cash flow of $1,170. source
• PepsiCo uses free cash flow primarily for acquisitions and financing activities, including debt repayments, dividends and share repurchases. source