PEP · 10-Q · 2026Q3 · Full report
Income Tax Rate Changes
PEPSICO INC · 2026-10-08 · Importance 25 · Surprise 32 · In source text
The reported tax rate was 21.4% for the 12 weeks ended September 5, 2026, unchanged from the prior-year quarter. For the 36 weeks, the reported tax rate was 21.6%, up 0.8 percentage points from 20.8%, primarily because the prior year included a release of federal interest accruals. Widespread implementation in 2026 of OECD model rules imposing a 15% global minimum tax in countries where PepsiCo operates increased the income tax provision. The filing does not quantify the dollar amount of the OECD-related increase.
Key facts
- PepsiCo had paid its final mandatory transition tax liability of $965 million as of September 5, 2026. source
- For the 36 weeks ended September 5, 2026, PepsiCo's reported tax rate increased 0.8 percentage points, primarily because of the prior-year release of federal interest accruals. source
- PepsiCo recognized additional expenses related to an indirect and income tax audit settlement in its LatAm Foods segment. source
- For the 12 weeks ended September 5, 2026, PepsiCo's reported tax rate was 21.4%, unchanged from the prior year. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| cash | negative | realized | -0.9% | PepsiCo had paid its final mandatory transition tax liability of $965 million as of September 5, 2026. |
| liability | positive | realized | +0.9% | PepsiCo had paid its final mandatory transition tax liability of $965 million as of September 5, 2026. |