PEP · 10-Q · 2026Q2 · Full report
Liquidity and Cash Position
PEPSICO INC · 2026-07-09 · Importance 37 · Surprise 6
PepsiCo states that its cash-generating capability, revolving credit facilities, working capital lines, commercial paper borrowings and long-term debt financing are expected to be adequate to meet operating, investing and financing needs including net capital spending plans. The company identifies its primary sources of liquidity as cash from operations, proceeds from commercial paper and long-term debt issuances, and cash and cash equivalents. As of June 13, 2026, cash, cash equivalents and short-term investments in consolidated subsidiaries outside of Russia that are subject to currency controls were not material, and Russia accounted for 21% of consolidated cash and cash equivalents. The company also states it does not have guarantees or off-balance sheet financing arrangements that it believes could have a material impact on liquidity and refers readers to its business risks and Note 7 for additional detail.
Key facts
- PepsiCo believes its cash generating capability, revolving credit facilities, working capital lines and other debt financing methods will be adequate to meet operating, investing and financing needs including net capital spending plans. source
- PepsiCo stated supply chain financing arrangements did not have a material impact on liquidity or capital resources in the periods presented and they do not expect such arrangements to have a material impact for the foreseeable future. source
- PepsiCo expects to continue to return free cash flow to shareholders primarily through dividends and share repurchases while maintaining Tier 1 commercial paper access. source
- PepsiCo warned that any downgrade of its credit ratings, especially below investment grade, could increase future borrowing costs and impair access to capital and credit markets. source
- PepsiCo noted that any downgrade of its current short-term credit ratings could impair access to the commercial paper market and require reliance on more expensive types of debt financing. source