PEP · 10-Q · 2026Q2 · Full report

Income Tax Rate Changes

PEPSICO INC · 2026-07-09 · Importance 58 · Surprise 68 · No source text

Widespread implementation in 2026 of the OECD model rules for a global minimum tax rate of 15% in various countries (including EU member states) increased PepsiCo's income tax provision in the current year.,The reported effective tax rate rose to 22.0% in the 12 weeks ended June 13, 2026 (from 18.6% prior year) primarily reflecting the prior‑year release of federal interest accruals and impairment of the Rockstar brand, plus the current‑year impact of the OECD global minimum tax, partially offset by higher tax benefits from foreign results.,PepsiCo states it will continue to monitor legislative changes which could further affect its provision for income taxes in subsequent periods.

Key facts

• The reported tax rate increased 3.4 percentage points for the 12 weeks ended June 13, 2026, primarily reflecting the prior-year release of federal interest accruals and the impairment of the Rockstar brand, as well as the current-year impact of the OECD model global minimum tax, partially offset by higher tax benefits from foreign results. source
• The reported tax rate for the 12 weeks ended June 13, 2026 was 22.0% and for the 12 weeks ended June 14, 2025 was 18.6%. source
• The reported tax rate for the 24 weeks ended June 13, 2026 was 21.7% and for the 24 weeks ended June 14, 2025 was 20.2%. source

Impact estimates