PEP · 10-Q · 2026Q2

PEPSICO INC

Filed 2026-07-09 · Consumer · View original filing on EDGAR

Ranked Events

• Operating Margin DriversImportance 83 · Surprise 82
  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.
• Free Cash FlowImportance 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…
• Capital Return ProgramImportance 75 · Surprise 60
  During the 24 weeks ended June 13, 2026, net cash used for financing activities was $0.1 billion, driven by dividend payments and share repurchases totaling $4.4 billion and long-term debt repayments of $2.2 billion,…
• Operating Cash Flow TrendsImportance 75 · Surprise 64
  During the 24 weeks ended June 13, 2026, PepsiCo generated net cash provided by operating activities of $2.4 billion, up from $1.0 billion in the prior-year period. The company attributes the increase primarily to…
• OECD Global Minimum TaxImportance 73 · Surprise 92
  PepsiCo discloses that in 2026 widespread implementation of the OECD model rules for a global minimum tax rate of 15% came into effect in various countries, including EU member states, and that this resulted in an…
• Asia Pacific Foods PerformanceImportance 71 · Surprise 82
  Asia Pacific Foods net revenue increased 12% in the 12 weeks ended June 13, 2026, reflecting organic volume growth and a 3‑percentage‑point benefit from favorable foreign‑exchange translation, partially offset by unfavorable net pricing.,Unit volume grew 10% in the 12‑week period, primarily reflecting growth in India (and in the 24‑week period growth in India and China).,Operating profit for Asia Pacific Foods materially improved (up 103% for the 24‑week period), driven by a prior‑year impairment of the Be & Cheery brand, productivity savings, organic volume growth and a ~9–10‑percentage‑point benefit from lower commodity costs (notably potatoes and packaging materials).
• EMEA Operating PerformanceImportance 67 · Surprise 82
  EMEA net revenue increased 10% in the 12 weeks ended June 13, 2026, driven by effective net pricing (largely from subsidiaries operating in highly inflationary economies), a 3‑percentage‑point favorable FX translation impact and organic volume growth.,Convenient foods unit volume in the 12‑week period grew 4% led by the Middle East, Russia and South Africa, while beverage unit volume grew 1% led by the Middle East.,Operating profit increased 103% in the 12‑week period, primarily reflecting a prior‑year impairment charge related to the Rockstar brand, net‑revenue growth and productivity savings, partially offset by certain operating cost increases.
• Income Tax Rate ChangesImportance 58 · Surprise 68
  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.
• Restructuring and Brand ImpairmentsImportance 55 · Surprise 92
  PepsiCo recognized impairment charges related to the Rockstar and Be & Cheery brands during the period covered by this Form 10-Q. The filing identifies these brand impairments as a discrete charge category in the MD&A.…
• Financing Activities and Debt MovementsImportance 50 · Surprise 24
  During the 24 weeks ended June 13, 2026, PepsiCo reported net cash used for financing activities of $0.1 billion, which included payments of long-term debt borrowings of $2.2 billion, net proceeds of short-term…
• International Operations RiskImportance 49 · Surprise 32
  PepsiCo describes exposure to volatile economic, political and geopolitical conditions across international markets (e.g., Argentina, Brazil, China, Mexico, the Middle East, Russia, Turkey, Ukraine) and notes these…
• Geographic Market CommentaryImportance 48 · Surprise 14
  PepsiCo generated 43% of consolidated net revenue outside the United States in the 24-week period, with Mexico, Russia, Canada, China, the U.K., Brazil and South Africa collectively comprising 25% of consolidated net…
• Product Taxes and RegulationsImportance 46 · Surprise 42
  PepsiCo reports that certain jurisdictions have imposed or are considering new or increased taxes or regulations on the manufacture, distribution or sale of its products or their packaging, including taxes targeted by…
• 2019 Productivity Plan / RestructuringImportance 46 · Surprise 42
  PepsiCo describes its 2019 multi‑year Productivity Plan aimed at simplifying, harmonizing and automating processes, re‑engineering go‑to‑market and information systems, and optimizing the manufacturing and supply‑chain…
• Export Controls / Regulatory RiskImportance 45 · Surprise 50
  PepsiCo warns that sanctions, export controls and restrictions on the transfer of funds in certain international markets have continued to impact operations and may do so going forward. The filing links these measures…
• Commodities and Supply-Chain VolatilityImportance 44 · Surprise 24
  PepsiCo discloses that many production and transportation commodities are purchased on open markets and that prices and availability are volatile due to geopolitical conditions, weather and supply-chain disruptions,…
• Capital Spending / Investing ActivitiesImportance 42 · Surprise 40
  For the 24 weeks ended June 13, 2026, PepsiCo reported net cash used for investing activities of $1.4 billion, primarily reflecting net capital spending of $1.2 billion. Capital spending declined versus the prior-year…
• FX / Currency HeadwindsImportance 42 · Surprise 40
  PepsiCo states it is exposed to foreign exchange risks across its international markets and that favorable foreign exchange contributed ~2 percentage points to net revenue for the 12 weeks ended June 13, 2026…
• LatAm Foods PerformanceImportance 42 · Surprise 40
  LatAm Foods net revenue increased 15% in the 12 weeks ended June 13, 2026, reflecting an 11‑percentage‑point impact of favorable foreign‑exchange translation (driven primarily by the strengthening of the Mexican peso) and effective net pricing.,Unit volume in the 12‑week period declined slightly, with declines concentrated in Mexico partially offset by growth in Colombia.,Operating profit improved 16% in the 12‑week period, driven by productivity savings, effective net pricing and a 13‑percentage‑point favorable FX impact from the Mexican peso, partially offset by operating cost increases and the absence of certain prior‑year indirect tax credits in Brazil.
• IB Franchise PerformanceImportance 42 · Surprise 40
  IB Franchise net revenue rose 11% in the 12 weeks ended June 13, 2026, driven by organic volume growth, effective net pricing and a 2‑percentage‑point benefit from favorable foreign‑exchange translation.,Unit volume in the 12‑week period grew 5%, led by broad‑based increases with India as the primary contributor and a partial offset from Mexico.,Operating profit for IB Franchise increased 19% in the 12‑week period, driven by the net‑revenue growth and productivity savings, partially offset by certain operating cost increases.

Revenue by Product (in millions)