百事可乐2026财年Q3：净收入+5.6%、有机收入加速至+3.1%，但核心EPS仅+2%、核心营业利润率收缩35个基点并更新全年指引

----- pep-20261008.htm -----
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
October 8, 2026
PepsiCo, Inc.
(Exact name of registrant as specified in its charter)
North Carolina
1-1183
13-1584302
(State or other jurisdiction
of incorporation)
(Commission
File Number)
(IRS Employer
Identification No.)
700 Anderson Hill Road
,
Purchase
,
New York
10577
(Address of principal executive offices and Zip Code)
Registrant’s telephone number, including area code: (
914
)
253-2000
N/A
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:
Title of each class
Trading Symbols
Name of each exchange on which registered
Common Stock, par value 1-2/3 cents per share
PEP
The Nasdaq Stock Market LLC
0.750% Senior Notes Due 2027
PEP27
The Nasdaq Stock Market LLC
0.875% Senior Notes Due 2028
PEP28
The Nasdaq Stock Market LLC
0.500% Senior Notes Due 2028
PEP28A
The Nasdaq Stock Market LLC
Floating Rate Notes Due 2028
PEP28B
The Nasdaq Stock Market LLC
3.200% Senior Notes Due 2029
PEP29
The Nasdaq Stock Market LLC
1.125% Senior Notes Due 2031
PEP31
The Nasdaq Stock Market LLC
0.400% Senior Notes Due 2032
PEP32
The Nasdaq Stock Market LLC
0.750% Senior Notes Due 2033
PEP33
The Nasdaq Stock Market LLC
3.550% Senior Notes Due 2034
PEP34
The Nasdaq Stock Market LLC
3.300% Senior Notes Due 2034
PEP34A
The Nasdaq Stock Market LLC
3.450% Senior Notes Due 2037
PEP37
The Nasdaq Stock Market LLC
3.700% Senior Notes Due 2038
PEP38
The Nasdaq Stock Market LLC
0.875% Senior Notes Due 2039
PEP39
The Nasdaq Stock Market LLC
4.150% Senior Notes Due 2047
PEP47
The Nasdaq Stock Market LLC
1.050% Senior Notes Due 2050
PEP50
The Nasdaq Stock Market LLC
4.050% Senior Notes Due 2055
PEP55
The Nasdaq Stock Market LLC
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
☐
Item 2.02. Results of Operations and Financial Condition.
The information in this Item 2.02, including Exhibit 99.1 attached hereto, is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section and shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended, or the Exchange Act, except as otherwise expressly stated in such filing.
Attached as Exhibit 99.1 and incorporated by reference into this Item 2.02 is a copy of the press release issued by PepsiCo, Inc. (“PepsiCo”), dated October 8, 2026, reporting PepsiCo’s financial results for the 12 and 36 weeks ended September 5, 2026.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
Exhibit No.
Description
99.1
Press Release issued by PepsiCo, Inc., dated
October
8
, 2026.
104
The cover page from this Current Report on Form 8-K, formatted in Inline XBRL.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
PEPSICO, INC.
Date:
October 7, 2026
By:
/s/ David Flavell
Name:
David Flavell
Title:
Executive Vice President, General Counsel and Corporate Secretary

----- q320268-kxexhibit991.htm -----
EX-99.1
2
q320268-kxexhibit991.htm
EX-99.1
Document
Exhibit 99.1
PepsiCo Reports Third-Quarter 2026 Results
Third-Quarter and Year-to-Date Results
1
•
Net revenue increased 5.6% and 6.7%, respectively
•
Organic revenue
2
increased 3.1% and 2.7%, respectively
•
Earnings per share (EPS) increased 17% and 47%, respectively
•
Core
2
EPS increased 2% and 5%, respectively
•
Core constant currency
2
EPS increased 1.5% and 2%, respectively
Guidance
•
Company updates fiscal 2026 financial guidance
2
PURCHASE, N.Y. - October 8, 2026
- PepsiCo, Inc. (NASDAQ: PEP) today reported results for third-quarter 2026.
“Our third-quarter results featured strong net revenue growth, an acceleration in organic revenue growth with organic volume growth across both global beverages and convenient foods. The results reflect the scale and resilience of the international business, the ongoing evolution of the global portfolio and an improved presence in underpenetrated channels and occasions,” said Chairman and CEO Ramon Laguarta.
Laguarta continued, “Looking ahead, we remain focused on building upon the strength of the International business while acting with urgency to sustainably improve our performance in North America through more investments in innovation, effective brand building, and sharper marketplace execution by channel. Additional structural cost reduction actions are being identified and will be implemented in the coming months to help fund investments that aim to accelerate organic revenue growth and mitigate the impacts of rising input cost inflation.”
Third-Quarter
Year-to-Date
($ in millions, except EPS)
Q3 2026
Q3 2025
Change
Q3 2026
Q3 2025
Change
Net revenue
$25,274
$23,937
5.6%
$68,898
$64,582
6.7%
Organic revenue performance
3.1%
2.7%
Operating profit
$4,260
$3,569
19%
$11,496
$7,941
45%
Operating margin
16.9%
14.9%
195 bps
16.7%
12.3%
440 bps
Core operating profit
$4,277
$4,137
3%
$11,394
$10,837
5%
Core operating margin
16.9%
17.3%
(35) bps
16.5%
16.8%
(25) bps
EPS
$2.23
$1.90
17%
$6.10
$4.15
47%
Core EPS
$2.34
$2.29
2%
$6.15
$5.88
5%
Core constant currency EPS
1.5%
2%
1
Versus the prior year.
2
Please refer to the reconciliation of generally accepted accounting principles (GAAP) and non-GAAP information in the attached exhibits and to the Glossary for the definitions of non-GAAP financial measures, including “Organic revenue performance,” “Core” and “Constant currency,” and to “Guidance and Outlook” for additional information regarding PepsiCo’s full-year 2026 financial guidance. PepsiCo provides guidance on a non-GAAP basis as we cannot predict certain elements which are included in reported GAAP results, including the impact of foreign exchange and commodity mark-to-market net impacts. Please refer to PepsiCo’s Quarterly Report on Form 10-Q for the 12 and 36 weeks ended September 5, 2026 (Q3 2026 Form 10-Q) filed with the Securities and Exchange Commission (SEC) for additional information regarding PepsiCo’s financial results.
1
Third-Quarter Results Discussion
•
Net revenue increased 5.6% due to 3.1% organic revenue growth, a 1.7-percentage-point net benefit from acquisitions and divestitures and a 0.7-percentage-point benefit from foreign exchange translation. Organic revenue growth reflects the benefits associated with effective net pricing and a contribution from organic volume growth.
◦
In North America, convenient foods net revenue trends improved sequentially, reflecting savory snacks volume growth and volume market share improvement, offset by lower effective net pricing. The beverages business delivered 5 percent net revenue growth, primarily reflecting the benefits of acquisitions made in 2025.
◦
The international businesses performed well with each segment delivering strong net revenue growth - aided by organic volume growth within Asia Pacific Foods, International Beverages Franchise and Latin America Foods.
•
Operating profit increased 19% and operating margin expanded 195 basis points, primarily reflecting a favorable net impact of acquisition and divestiture-related charges/credits and a favorable impact of net mark-to-market gains on commodity derivatives. Core operating profit increased 3%, with core operating margin contracting 35 basis points. The core operating profit performance reflects productivity savings, effective net pricing and a 4-percentage-point favorable impact of tariff refunds. These impacts were partially offset by certain operating cost increases and higher advertising and marketing expenses.
•
EPS increased 17% and core EPS increased 2%, primarily driven by operating profit growth.
Year-to-Date Results Discussion
•
Net revenue increased 6.7% due to 2.7% organic revenue growth, a 2.0-percentage-point benefit from foreign exchange translation and a 2.0-percentage-point net benefit from acquisitions and divestitures. Organic revenue growth reflects the benefits associated with effective net pricing and a contribution from organic volume growth.
◦
In North America convenient foods, organic volume and volume market share increased aided by innovation and affordability initiatives. Convenient foods net revenue reflects organic volume growth and the benefits of an acquisition, offset by lower effective net pricing. The beverages business delivered 7 percent net revenue growth, primarily reflecting the benefits of acquisitions made in 2025 with organic revenue growth increasing 1 percent.
◦
The international businesses performed well with each segment delivering strong net revenue growth - aided by organic volume growth within Asia Pacific Foods, International Beverages Franchise and EMEA.
•
Operating profit increased 45% and operating margin expanded 440 basis points, primarily reflecting prior-year impairment charges related to the Rockstar and Be & Cheery brands and a favorable net impact of acquisition and divestiture-related charges/credits. Core operating profit increased 5%, with core operating margin contracting 25 basis points. The core operating profit performance was primarily driven by productivity savings and effective net pricing, partially offset by certain operating cost increases.
•
EPS increased 47% and core EPS increased 5%, primarily driven by operating profit growth.
2
Summary Third-Quarter 2026 Performance
Revenue
Volume
(a)
GAAP Reported
% Change
Percentage Point Impact
Organic
% Change
% Change
Foreign Exchange Translation
Acquisitions and Divestitures
Convenient Foods
Beverages
PepsiCo Foods North America (PFNA)
—
—
—
—
—
PepsiCo Beverages North America (PBNA)
5
—
(6)
—
(2)
International Beverages Franchise (IB Franchise)
8
(1)
—
7
5
Europe, Middle East and Africa (EMEA)
8
1
—
9
(1)
4
Latin America Foods (LatAm Foods)
14
(8)
—
6
3
Asia Pacific Foods
10
(1)
—
9
11
Total
6
(1)
(2)
3
1
3
Operating Profit and EPS
GAAP Reported % Change
Percentage Point Impact
Core Constant Currency
% Change
Items Affecting Comparability
Foreign Exchange Translation
PFNA
(13)
1
—
(12)
PBNA
45
(41)
—
4
IB Franchise
29
(19)
(1.5)
9
EMEA
25
(8)
2
19
LatAm Foods
47
(27)
(9)
10
Asia Pacific Foods
15
(1)
(2)
12
Corporate unallocated expenses
(10)
15
—
5
Total
19
(16)
(1)
2.5
EPS
17
(15)
(1)
1.5
(a)
Excludes the impact of acquisitions and divestitures. In certain instances, the volume change shown here differs from the impact of organic volume change on net revenue performance disclosed in the Organic Revenue Performance table on page A-7, due to the impacts of product mix, nonconsolidated joint venture volume, and, for our franchise beverage businesses, temporary timing differences between bottler case sales (BCS) and concentrate shipments and equivalents (CSE). We report net revenue from our franchise beverage businesses based on CSE. The volume sold by our nonconsolidated joint ventures has no direct impact on our net revenue.
Note: Amounts may not sum due to rounding.
Organic revenue and core constant currency results are non-GAAP financial measures. Please refer to the reconciliation of GAAP and non-GAAP information in the attached exhibits and to the Glossary for definitions of “Organic revenue performance,” “Core” and “Constant currency.”
3
Summary Year-to-Date 2026 Performance
Revenue
Volume
(a)
GAAP Reported
% Change
Percentage Point Impact
Organic
% Change
% Change
Foreign Exchange Translation
Acquisitions and Divestitures
Convenient Foods
Beverages
PFNA
—
—
—
—
1
PBNA
7
—
(6)
1
(3)
IB Franchise
10
(2)
—
8
4
EMEA
11
(3)
—
7
3
2
LatAm Foods
15
(11)
—
4.5
—
Asia Pacific Foods
11
(3)
—
9
10
Total
7
(2)
(2)
3
3
2
Operating Profit and EPS
GAAP Reported
% Change
Percentage Point Impact
Core Constant Currency
% Change
Items Affecting Comparability
Foreign Exchange Translation
PFNA
(8)
—
—
(8)
PBNA
416
(413)
—
3
IB Franchise
22
(7)
(2)
13
EMEA
47
(29)
(2)
17
LatAm Foods
28
(10)
(12)
6
Asia Pacific Foods
62
(32)
(4)
25
Corporate unallocated expenses
(13)
16
—
3
Total
45
(40)
(2)
3
EPS
47
(42)
(2.5)
2
(a)
Excludes the impact of acquisitions and divestitures. In certain instances, the volume change shown here differs from the impact of organic volume change on net revenue performance disclosed in the Organic Revenue Performance table on page A-7, due to the impacts of product mix, nonconsolidated joint venture volume, and, for our franchise beverage businesses, temporary timing differences between BCS and CSE. We report net revenue from our franchise beverage businesses based on CSE. The volume sold by our nonconsolidated joint ventures has no direct impact on our net revenue.
Note: Amounts may not sum due to rounding.
Organic revenue and core constant currency results are non-GAAP financial measures. Please refer to the reconciliation of GAAP and non-GAAP information in the attached exhibits and to the Glossary for definitions of “Organic revenue performance,” “Core” and “Constant currency.”
4
Guidance and Outlook
The Company provides guidance on a non-GAAP basis as we cannot predict certain elements which are included in reported GAAP results, including the impact of foreign exchange translation and commodity mark-to-market net impacts. PepsiCo’s current and previous fiscal 2026 outlook is summarized below.
Fiscal 2026 Guidance (
changes are bolded & italicized below)
Current
Previous
Organic Revenue
Approximately +3%
+2% to +4%
Foreign Exchange Translation
(a)
Approximately +1.5% to net revenue and core EPS growth
Approximately +1% to net revenue and core EPS growth
Acquisitions, net of Divestitures
(b)
Approximately +1.5% to net revenue growth
Approximately +1% to net revenue growth
Net Revenue
Approximately +6%
+4% to +6%
Core Annual Effective Tax Rate
(c)
Approximately 21%
Approximately 22%
Core Constant Currency EPS
+1% to +2%
Low-end of +4% to +6%
Core EPS
+2.5% to +3.5%
Low-end of +5% to +7%
Capital Spending
Below 5% of net revenue
Below 5% of net revenue
Free Cash Flow Conversion Ratio
At least 80 percent
At least 80 percent
Cash Returns to Shareholders
(d)
$8.9 billion
$8.9 billion
(a)
Assumptions are based on current foreign exchange rates, as we are unable to predict the impact of exchange translation rates.
(b)
Refers to acquisitions, net of divestitures, that occurred in 2025.
(c)
Includes the anticipated impact of global minimum tax regulations.
(d)
Comprised of dividends of $7.9 billion and share repurchases of $1.0 billion.
Prepared Management Remarks and Live Question and Answer Webcast
At approximately 6:00 a.m. (Eastern time) on October 8, 2026, the Company will post prepared management remarks (in pdf format) regarding its third quarter results and business update, including its outlook for 2026, at https://www.pepsico.com/investors. At 8:15 a.m. (Eastern time) on October 8, 2026, the Company will host a live question and answer session with investors and financial analysts. Further details will be accessible on the Company’s website at https://www.pepsico.com/investors.
Contacts:
Investor Relations
Communications
investor@pepsico.com
pepsicomediarelations@pepsico.com
5
PepsiCo, Inc. and Subsidiaries
Condensed Consolidated Statement of Income
(in millions, except per share amounts, unaudited)
12 Weeks Ended
36 Weeks Ended
9/5/2026
9/6/2025
9/5/2026
9/6/2025
Net Revenue
$
25,274
$
23,937
$
68,898
$
64,582
Cost of sales
11,520
11,113
31,302
29,343
Gross profit
13,754
12,824
37,596
35,239
Selling, general and administrative expenses
9,494
9,122
26,100
25,305
Impairment of intangible assets
(a)
—
133
—
1,993
Operating Profit
4,260
3,569
11,496
7,941
Other pension and retiree medical benefits (expense)/income
(114)
26
3
91
Net interest expense and other
(242)
(264)
(773)
(788)
Income before income taxes
3,904
3,331
10,726
7,244
Provision for income taxes
834
713
2,314
1,504
Net income
3,070
2,618
8,412
5,740
Less: Net income attributable to noncontrolling interests
22
15
56
40
Net Income Attributable to PepsiCo
$
3,048
$
2,603
$
8,356
$
5,700
Diluted
Net income attributable to PepsiCo per common share
$
2.23
$
1.90
$
6.10
$
4.15
Weighted-average common shares outstanding
1,367
1,372
1,369
1,373
(a)
For the 12 and 36 weeks ended September 6, 2025, we recognized charges primarily related to the impairment of our Rockstar brand.
A - 1
PepsiCo, Inc. and Subsidiaries
Condensed Consolidated Statement of Cash Flows
(in millions, unaudited)
36 Weeks Ended
9/5/2026
9/6/2025
Operating Activities
Net income
$
8,412
$
5,740
Depreciation and amortization
2,531
2,315
Impairment and other charges
—
1,960
Operating lease right-of-use asset amortization
531
489
Share-based compensation expense
240
207
Restructuring and impairment charges
367
567
Cash payments for restructuring charges
(373)
(554)
Acquisition and divestiture-related charges/credits
(254)
308
Cash payments for acquisition and divestiture-related charges
(24)
(80)
Pension and retiree medical plan expenses
227
164
Pension and retiree medical plan contributions
(355)
(400)
Deferred income taxes and other tax charges/credits
663
30
Tax payments related to the Tax Cuts and Jobs Act
(965)
(772)
Change in assets and liabilities:
Accounts and notes receivable
(2,124)
(1,747)
Inventories
(588)
(449)
Prepaid expenses and other current assets
27
(223)
Accounts payable and other current liabilities
(358)
(1,647)
Income taxes payable
415
6
Other, net
(422)
(446)
Net Cash Provided by Operating Activities
7,950
5,468
Investing Activities
Capital spending
(2,182)
(2,499)
Sales of property, plant and equipment
89
272
Acquisitions, net of cash acquired, investments in noncontrolled affiliates and purchases of intangible and other assets
(148)
(3,176)
Short-term investments, by original maturity:
More than three months - purchases
(105)
(190)
More than three months - maturities
17
425
More than three months - sales
14
—
Three months or less, net
(5)
43
Other investing, net
(27)
(112)
Net Cash Used for Investing Activities
(2,347)
(5,237)
(Continued on following page)
A - 2
PepsiCo, Inc. and Subsidiaries
Condensed Consolidated Statement of Cash Flows (continued)
(in millions, unaudited)
36 Weeks Ended
9/5/2026
9/6/2025
Financing Activities
Proceeds from issuances of long-term debt
$
2,978
$
8,179
Payments of long-term debt
(2,328)
(3,245)
Short-term borrowings, by original maturity:
More than three months - proceeds
4,562
5,528
More than three months - payments
(3,817)
(5,417)
Three months or less, net
1,365
445
Cash dividends paid
(5,935)
(5,692)
Share repurchases
(739)
(752)
Proceeds from exercises of stock options
107
76
Withholding tax payments on restricted stock units and performance stock units converted
(96)
(112)
Other financing
(1)
(18)
Net Cash Used for Financing Activities
(3,904)
(1,008)
Effect of exchange rate changes on cash and cash equivalents and restricted cash
(175)
395
Net Increase/(Decrease) in Cash and Cash Equivalents and Restricted Cash
1,524
(382)
Cash and Cash Equivalents and Restricted Cash, Beginning of Year
9,204
8,553
Cash and Cash Equivalents and Restricted Cash, End of Period
$
10,728
$
8,171
Supplemental Non-Cash Activity
Right-of-use assets obtained in exchange for lease obligations
$
625
$
542
Investment obtained for certain assets
$
—
$
554
A - 3
PepsiCo, Inc. and Subsidiaries
Condensed Consolidated Balance Sheet
(in millions, except per share amounts)
(unaudited)
9/5/2026
12/27/2025
ASSETS
Current Assets
Cash and cash equivalents
$
10,675
$
9,159
Short-term investments
488
371
Accounts and notes receivable, net
13,623
11,506
Inventories:
Raw materials and packaging
2,792
2,581
Work-in-process
175
143
Finished goods
3,467
3,121
6,434
5,845
Prepaid expenses and other current assets
1,339
1,068
Total Current Assets
32,559
27,949
Property, Plant and Equipment, net
29,731
29,905
Amortizable Intangible Assets, net
1,165
1,219
Goodwill
18,884
18,916
Other Indefinite-Lived Intangible Assets
13,977
13,847
Investments in Noncontrolled Affiliates
2,215
2,038
Deferred Income Taxes
4,328
4,541
Other Assets
9,117
8,984
Total Assets
$
111,976
$
107,399
LIABILITIES AND EQUITY
Current Liabilities
Short-term debt obligations
$
9,223
$
6,861
Accounts payable and other current liabilities
25,306
25,903
Total Current Liabilities
34,529
32,764
Long-Term Debt Obligations
42,658
42,321
Deferred Income Taxes
4,107
3,802
Other Liabilities
8,195
7,965
Total Liabilities
89,489
86,852
Commitments and contingencies
PepsiCo Common Shareholders’ Equity
Common stock, par value 1
2
/
3
¢ per share (authorized 3,600 shares; issued, net of repurchased common stock at par value: 1,364 and 1,367 shares, respectively)
23
23
Capital in excess of par value
4,522
4,451
Retained earnings
75,140
72,788
Accumulated other comprehensive loss
(14,987)
(15,024)
Repurchased common stock, in excess of par value (503 and 500 shares, respectively)
(42,406)
(41,832)
Total PepsiCo Common Shareholders’ Equity
22,292
20,406
Noncontrolling interests
195
141
Total Equity
22,487
20,547
Total Liabilities and Equity
$
111,976
$
107,399
A - 4
Non-GAAP Measures
In discussing financial results and guidance, the Company refers to the following measures which are not in accordance with U.S. Generally Accepted Accounting Principles (GAAP): organic revenue performance, core results, core constant currency results, free cash flow and free cash flow conversion. We use non-GAAP financial measures internally to make operating and strategic decisions, including the preparation of our annual operating plan, evaluation of our overall business performance and as a factor in determining compensation for certain employees. We believe presenting non-GAAP financial measures provides additional information to facilitate comparison of our historical operating results and trends in our underlying operating results and provides additional transparency on how we evaluate our business. We also believe presenting these measures allows investors to view our performance using the same measures that we use in evaluating our financial and business performance and trends.
We consider quantitative and qualitative factors in assessing whether to adjust for the impact of items that may be significant or that could affect an understanding of our ongoing financial and business performance or trends. Examples of items for which we may make adjustments include: amounts related to mark-to-market gains or losses (non-cash); charges related to restructuring plans; charges and credits associated with acquisitions and divestitures; gains associated with divestitures; asset impairment charges (non-cash); product recall-related impact; pension and retiree medical-related amounts, including all settlement and curtailment gains and losses; charges or adjustments related to the enactment of new laws, rules or regulations, such as tax law changes; amounts related to the resolution of tax positions; tax benefits related to reorganizations of our operations; and debt redemptions, cash tender or exchange offers. See below for a description of adjustments to our GAAP financial measures included herein.
Non-GAAP information should be considered as supplemental in nature and is not meant to be considered in isolation or as a substitute for the related financial information prepared in accordance with GAAP. In addition, our non-GAAP financial measures may not be the same as or comparable to similar non-GAAP measures presented by other companies.
Glossary
We use the following definitions when referring to our non-GAAP financial measures:
Acquisitions and divestitures: mergers and acquisitions activity, as well as divestitures and other structural changes, including changes in ownership or control in consolidated subsidiaries and nonconsolidated equity investees.
Bottler case sales (BCS): Measure of physical beverage volume shipped to retailers and independent distributors from both PepsiCo and our independent bottlers.
Concentrate shipments and equivalents (CSE): Measure of our physical beverage volume shipments to independent bottlers.
Constant currency: Financial results assuming constant foreign currency exchange rates used for translation based on the rates in effect for the comparable prior-year period. In order to compute our constant currency results, we multiply or divide, as appropriate, our current-year U.S. dollar results by the current-year average foreign exchange rates and then multiply or divide, as appropriate, those amounts by the prior-year average foreign exchange rates. We also apply the constant currency calculation for our subsidiaries operating in highly inflationary economies.
Core: Core results are non-GAAP financial measures which exclude certain items from our financial results. For further information regarding these excluded items, refer to “Items Affecting Comparability” in “Item 2 – Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Q3 2026 Form 10-Q and in “Item 7 – Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our annual report on Form 10-K for the fiscal year ended December 27, 2025. For the periods presented, core results exclude the following items:
Mark-to-market net impact
Mark-to-market net gains and losses on commodity derivatives in corporate unallocated expenses. These gains and losses are subsequently reflected in segment results when the segments recognize the cost of the underlying commodity in operating profit.
Restructuring and impairment charges
Expenses related to the multi-year productivity plan publicly announced in 2019, which was expanded and extended through the end of 2030 to take advantage of additional opportunities within the initiatives of the plan.
Acquisition and divestiture-related charges/credits
Acquisition and divestiture-related charges/credits include merger and integration charges, transaction expenses, such as consulting, advisory and other professional fees, as well as fair value adjustments to contingent consideration and to the acquired inventory included in the acquisition-date balance sheets. Merger and integration charges include distribution agreement termination fees, impairment of certain acquisition-related intangibles, employee-related costs, closing costs and other integration costs.
A - 5
Impairment and other charges
We recognized impairment charges primarily as a result of our quantitative assessments of certain of our indefinite-lived intangible assets, related to the Rockstar and Be & Cheery brands
.
Indirect and income tax impact
We recognized additional expenses related to an indirect and income tax audit settlement in our LatAm Foods segment.
Pension and retiree medical-related impact
Pension and retiree medical-related impact includes settlement charges related to lump sum distributions exceeding the total of annual service and interest costs, as well as net curtailment losses.
Effective net pricing: Reflects the year-over-year impact of discrete pricing actions, sales incentive activities and mix resulting from selling varying products in different package sizes and in different countries.
Free cash flow: Net cash from operating activities less capital spending, plus sales of property, plant and equipment. Since net capital spending (capital spending less cash proceeds from sales of property, plant and equipment) is essential to our product innovation initiatives and maintaining our operational capabilities, we believe that it is a recurring and necessary use of cash. As such, we believe investors should also consider net capital spending when evaluating our cash from operating activities. Free cash flow is used by us primarily for acquisitions and financing activities, including debt repayments, dividends and share repurchases. Free cash flow is not a measure of cash available for discretionary expenditures since we have certain non-discretionary obligations such as debt service that are not deducted from the measure.
Free cash flow conversion ratio: Free cash flow divided by core net income attributable to PepsiCo.
Organic revenue performance: A measure that adjusts for the impacts of foreign exchange translation (on a constant currency basis, as defined above), acquisitions and divestitures, and every five or six years, the impact of an additional week of results. We also apply the constant currency calculation for our subsidiaries operating in highly inflationary economies. We believe organic revenue performance provides useful information in evaluating the results of our business because it adjusts for items that we believe are not indicative of ongoing performance or that we believe impact comparability with the prior year.
2026 guidance
Our 2026 organic revenue performance guidance adjusts for the impacts of foreign exchange translation (on a constant currency basis, as defined above) and acquisitions and divestitures. Our 2026 core effective tax rate guidance, our 2026 core constant currency EPS growth guidance and our projected 2026 core net income attributable to PepsiCo (a component of free cash flow conversion ratio) exclude the mark-to-market net impact included in corporate unallocated expenses, restructuring and impairment charges and other items noted above. Our 2026 core constant currency EPS growth guidance also excludes the impact of foreign exchange translation. We are unable to reconcile our full year projected 2026 organic revenue growth to our full year projected 2026 reported net revenue growth because we are unable to predict the 2026 impact of foreign exchange due to the unpredictability of future changes in foreign exchange rates and because we are unable to predict the occurrence or impact of any acquisitions and divestitures. We are also not able to reconcile our full year projected 2026 core effective tax rate to our full year projected 2026 reported effective tax rate, our full year projected 2026 core constant currency EPS growth to our full year projected 2026 reported EPS growth and our full year projected 2026 core net income attributable to PepsiCo (a component of free cash flow conversion ratio) to our full year projected 2026 reported net income, because we are unable to predict the 2026 impact of foreign exchange or the mark-to-market net impact on commodity derivatives due to the unpredictability of future changes in foreign exchange rates and commodity prices. Therefore, we are unable to provide a reconciliation of these measures, without unreasonable effort.
A - 6
PepsiCo, Inc. and Subsidiaries
Reconciliation of GAAP and Non-GAAP Information
Organic Revenue Performance
12 and 36 Weeks Ended September 5, 2026
(dollars in millions, unaudited)
12 Weeks Ended 9/5/2026
PFNA
PBNA
IB Franchise
EMEA
LatAm Foods
Asia Pacific Foods
Total
Reported Net Revenue, GAAP measure
$
6,504
$
7,706
$
1,401
$
5,413
$
3,021
$
1,229
$
25,274
Impact of foreign exchange translation
(a)
10
11
(14)
42
(214)
(13)
(178)
Impact of acquisitions and structural changes
—
(428)
—
—
—
—
(428)
Organic Revenue, non-GAAP measure
(b)
$
6,514
$
7,289
$
1,387
$
5,455
$
2,807
$
1,216
$
24,668
Prior Year Reported Net Revenue, GAAP measure
$
6,526
$
7,327
$
1,291
$
5,022
$
2,656
$
1,115
$
23,937
Impact of divestitures
—
(15)
—
—
—
—
(15)
Prior Year Organic Revenue, non-GAAP measure
(b)
$
6,526
$
7,312
$
1,291
$
5,022
$
2,656
$
1,115
$
23,922
Reported Net Revenue % Change, GAAP measure
—
5
8
8
14
10
6
Impact of foreign exchange translation
—
—
(1)
1
(8)
(1)
(1)
Impact of acquisitions and divestitures
—
(6)
—
—
—
—
(2)
Organic Revenue % Change, non-GAAP measure
(c)
—
—
7
9
6
9
3
Impact on % Change of:
Organic volume change
(d)
0.5
(3)
5.5
1
2.5
11
0.5
Effective net pricing
(1)
3
2
7
3
(2)
3
36 Weeks Ended 9/5/2026
PFNA
PBNA
IB Franchise
EMEA
LatAm Foods
Asia Pacific Foods
Total
Reported Net Revenue, GAAP measure
$
19,204
$
21,340
$
3,748
$
13,219
$
7,895
$
3,492
$
68,898
Impact of foreign exchange translation
(a)
(13)
(11)
(71)
(390)
(721)
(83)
(1,289)
Impact of acquisitions and structural changes
(54)
(1,245)
—
—
—
—
(1,299)
Organic Revenue, non-GAAP measure
(b)
$
19,137
$
20,084
$
3,677
$
12,829
$
7,174
$
3,409
$
66,310
Prior Year Reported Net Revenue, GAAP measure
$
19,215
$
19,999
$
3,418
$
11,946
$
6,865
$
3,139
$
64,582
Impact of divestitures
—
(37)
—
—
—
—
(37)
Prior Year Organic Revenue, non-GAAP measure
(b)
$
19,215
$
19,962
$
3,418
$
11,946
$
6,865
$
3,139
$
64,545
Reported Net Revenue % Change, GAAP measure
—
7
10
11
15
11
7
Impact of foreign exchange translation
—
—
(2)
(3)
(11)
(3)
(2)
Impact of acquisitions and divestitures
—
(6)
—
—
—
—
(2)
Organic Revenue % Change, non-GAAP measure
(c)
—
1
8
7
4.5
9
3
Impact on % Change of:
Organic volume change
(d)
1
(3)
4
3
—
10
0.5
Effective net pricing
(1)
4
4
4
4
(2)
2
(a)
Represents the adjustment needed to reflect translation of revenue using prior-year period foreign currency exchange rates.
(b)
Represents underlying amount, not in accordance with GAAP, used in the calculation of Organic Revenue Performance, which is a financial measure that is not in accordance with GAAP. See pages A-5 through A-6 for further discussion.
(c)
A financial measure that is not in accordance with GAAP. See pages A-5 through A-6 for further discussion.
(d)
Excludes the impact of acquisitions and divestitures. In certain instances, the impact of organic volume change on net revenue performance differs from the unit volume change disclosed in the Summary Third-Quarter 2026 Performance table and Summary Year-to-Date 2026 Performance table on pages 3 and 4 respectively, due to the impacts of product mix, nonconsolidated joint venture volume, and, for our franchise beverage businesses, temporary timing differences between BCS and CSE. We report net revenue from our franchise beverage businesses based on CSE. The volume sold by our nonconsolidated joint ventures has no direct impact on our net revenue.
Note – Amounts may not sum due to rounding.
A - 7
PepsiCo, Inc. and Subsidiaries
Reconciliation of GAAP and Non-GAAP Information (continued)
Certain Line Items by Segment
12 Weeks Ended September 5, 2026
(dollars in millions, unaudited)
PFNA
PBNA
IB Franchise
EMEA
LatAm Foods
Asia Pacific Foods
Corporate Unallocated Expenses
Total
Reported Cost of Sales, GAAP measure
$
2,578
$
3,540
$
409
$
3,044
$
1,233
$
731
$
(15)
$
11,520
Mark-to-market net impact
—
—
—
—
—
—
15
15
Restructuring and impairment charges
(2)
(5)
—
(3)
1
—
—
(9)
Core Cost of Sales, non-GAAP measure
(a)
$
2,576
$
3,535
$
409
$
3,041
$
1,234
$
731
$
—
$
11,526
Gross Margin
Reported Gross Profit, GAAP measure
$
3,926
$
4,166
$
992
$
2,369
$
1,788
$
498
$
15
$
13,754
54.4
%
Mark-to-market net impact
—
—
—
—
—
—
(15)
(15)
(0.1)
Restructuring and impairment charges
2
5
—
3
(1)
—
—
9
—
Core Gross Profit, non-GAAP measure
(a)
$
3,928
$
4,171
$
992
$
2,372
$
1,787
$
498
$
—
$
13,748
54.4
%
Reported Selling, General and Administrative Expenses, GAAP measure
$
2,593
$
3,110
$
430
$
1,472
$
1,164
$
324
$
401
$
9,494
Mark-to-market net impact
—
—
—
—
—
—
64
64
Restructuring and impairment charges
(46)
(48)
(2)
(40)
(3)
(5)
(39)
(183)
Acquisition and divestiture-related charges/credits
(1)
97
—
—
—
—
—
96
Core Selling, General and Administrative Expenses, non-GAAP measure
(a)
$
2,546
$
3,159
$
428
$
1,432
$
1,161
$
319
$
426
$
9,471
Operating Margin
Reported Operating Profit, GAAP measure
$
1,333
$
1,056
$
562
$
897
$
624
$
174
$
(386)
$
4,260
16.9
%
Mark-to-market net impact
—
—
—
—
—
—
(79)
(79)
(0.3)
Restructuring and impairment charges
48
53
2
43
2
5
39
192
0.8
Acquisition and divestiture-related charges/credits
1
(97)
—
—
—
—
—
(96)
(0.4)
Core Operating Profit, non-GAAP measure
(a)
1,382
1,012
564
940
626
179
(426)
4,277
16.9
%
Impact of foreign exchange translation
(b)
2
3
(8)
18
(49)
(4)
—
(38)
Core Constant Currency Operating Profit, non-GAAP measure
(a)
$
1,384
$
1,015
$
556
$
958
$
577
$
175
$
(426)
$
4,239
Reported Operating Profit % Change, GAAP measure
(13)
45
29
25
47
15
(10)
19
Core Operating Profit % Change, non-GAAP measure
(a)
(12)
4
10
16
20
14
5
3
Core Constant Currency Operating Profit % Change, non-GAAP measure
(a)
(12)
4
9
19
10
12
5
2.5
(a)
A financial measure that is not in accordance with GAAP. See pages A-5 through A-6 for further discussion.
(b)
Represents the adjustment needed to reflect translation of operating profit using prior-year period foreign currency exchange rates.
Note – Amounts may not sum due to rounding.
A - 8
PepsiCo, Inc. and Subsidiaries
Reconciliation of GAAP and Non-GAAP Information (continued)
Certain Line Items by Segment (continued)
12 Weeks Ended September 6, 2025
(dollars in millions, unaudited)
PFNA
PBNA
IB Franchise
EMEA
LatAm Foods
Asia Pacific Foods
Corporate Unallocated Expenses
Total
Reported Cost of Sales, GAAP measure
$
2,567
$
3,452
$
405
$
2,871
$
1,134
$
666
$
18
$
11,113
Mark-to-market net impact
—
—
—
—
—
—
(18)
(18)
Restructuring and impairment charges
(10)
1
—
(7)
—
—
—
(16)
Acquisition and divestiture-related charges/credits
—
(46)
—
—
—
—
—
(46)
Core Cost of Sales, non-GAAP measure
(a)
$
2,557
$
3,407
$
405
$
2,864
$
1,134
$
666
$
—
$
11,033
Gross Margin
Reported Gross Profit, GAAP measure
$
3,959
$
3,875
$
886
$
2,151
$
1,522
$
449
$
(18)
$
12,824
53.6
%
Mark-to-market net impact
—
—
—
—
—
—
18
18
0.1
Restructuring and impairment charges
10
(1)
—
7
—
—
—
16
0.1
Acquisition and divestiture-related charges/credits
—
46
—
—
—
—
—
46
0.2
Core Gross Profit, non-GAAP measure
(a)
$
3,969
$
3,920
$
886
$
2,158
$
1,522
$
449
$
—
$
12,904
53.9
%
Reported Selling, General and Administrative Expenses, GAAP measure
$
2,423
$
3,086
$
377
$
1,431
$
1,098
$
298
$
409
$
9,122
Mark-to-market net impact
—
—
—
—
—
—
(5)
(5)
Restructuring and impairment charges
(22)
(20)
(2)
(62)
(17)
(5)
2
(126)
Acquisition and divestiture-related charges/credits
(2)
(123)
—
—
—
—
—
(125)
Impairment and other charges
—
2
—
(19)
—
—
—
(17)
Indirect and income tax impact
—
—
—
—
(82)
—
—
(82)
Core Selling, General and Administrative Expenses, non-GAAP measure
(a)
$
2,399
$
2,945
$
375
$
1,350
$
999
$
293
$
406
$
8,767
Reported Impairment of Intangible Assets, GAAP measure
$
—
$
60
$
73
$
—
$
—
$
—
$
—
$
133
Acquisition and divestiture-related charges/credits
—
(50)
—
—
—
—
—
(50)
Impairment and other charges
—
(10)
(73)
—
—
—
—
(83)
Core Impairment of Intangible Assets, non-GAAP measure
(a)
$
—
$
—
$
—
$
—
$
—
$
—
$
—
$
—
Operating Margin
Reported Operating Profit, GAAP measure
$
1,536
$
729
$
436
$
720
$
424
$
151
$
(427)
$
3,569
14.9
%
Mark-to-market net impact
—
—
—
—
—
—
23
23
0.1
Restructuring and impairment charges
32
19
2
69
17
5
(2)
142
0.6
Acquisition and divestiture-related charges/credits
2
219
—
—
—
—
—
221
0.9
Impairment and other charges
—
8
73
19
—
—
—
100
0.4
Indirect and income tax impact
—
—
—
—
82
—
—
82
0.3
Core Operating Profit, non-GAAP measure
(a)
$
1,570
$
975
$
511
$
808
$
523
$
156
$
(406)
$
4,137
17.3
%
(a)
A financial measure that is not in accordance with GAAP. See pages A-5 through A-6 for further discussion.
Note – Amounts may not sum due to rounding.
A - 9
PepsiCo, Inc. and Subsidiaries
Reconciliation of GAAP and Non-GAAP Information (continued)
Certain Line Items by Segment (continued)
36 Weeks Ended September 5, 2026
(dollars in millions, unaudited)
PFNA
PBNA
IB Franchise
EMEA
LatAm Foods
Asia Pacific Foods
Corporate Unallocated Expenses
Total
Reported Cost of Sales, GAAP measure
$
7,485
$
9,951
$
1,080
$
7,565
$
3,185
$
2,078
$
(42)
$
31,302
Mark-to-market net impact
—
—
—
—
—
—
42
42
Restructuring and impairment charges
(19)
(4)
—
(12)
8
—
—
(27)
Core Cost of Sales, non-GAAP measure
(a)
$
7,466
$
9,947
$
1,080
$
7,553
$
3,193
$
2,078
$
—
$
31,317
Gross Margin
Reported Gross Profit, GAAP measure
$
11,719
$
11,389
$
2,668
$
5,654
$
4,710
$
1,414
$
42
$
37,596
54.6
%
Mark-to-market net impact
—
—
—
—
—
—
(42)
(42)
(0.1)
Restructuring and impairment charges
19
4
—
12
(8)
—
—
27
—
Core Gross Profit, non-GAAP measure
(a)
$
11,738
$
11,393
$
2,668
$
5,666
$
4,702
$
1,414
$
—
$
37,581
54.5
%
Reported Selling, General and Administrative Expenses, GAAP measure
$
7,615
$
8,544
$
1,148
$
3,728
$
3,042
$
896
$
1,127
$
26,100
Mark-to-market net impact
—
—
—
—
—
—
179
179
Restructuring and impairment charges
(130)
(51)
(10)
(70)
(17)
(13)
(55)
(346)
Acquisition and divestiture-related charges/credits
(3)
257
—
—
—
—
—
254
Core Selling, General and Administrative Expenses, non-GAAP measure
(a)
$
7,482
$
8,750
$
1,138
$
3,658
$
3,025
$
883
$
1,251
$
26,187
Operating Margin
Reported Operating Profit, GAAP measure
$
4,104
$
2,845
$
1,520
$
1,926
$
1,668
$
518
$
(1,085)
$
11,496
16.7
%
Mark-to-market net impact
—
—
—
—
—
—
(221)
(221)
(0.3)
Restructuring and impairment charges
149
55
10
82
9
13
55
373
0.5
Acquisition and divestiture-related charges/credits
3
(257)
—
—
—
—
—
(254)
(0.4)
Core Operating Profit, non-GAAP measure
(a)
4,256
2,643
1,530
2,008
1,677
531
(1,251)
11,394
16.5
%
Impact of foreign exchange translation
(b)
(3)
—
(30)
(29)
(175)
(16)
—
(253)
Core Constant Currency Operating Profit, non-GAAP measure
(a)
$
4,253
$
2,643
$
1,500
$
1,979
$
1,502
$
515
$
(1,251)
$
11,141
Reported Operating Profit % Change, GAAP measure
(8)
416
22
47
28
62
(13)
45
Core Operating Profit % Change, non-GAAP measure
(a)
(8)
3
15
18
18
29
3
5
Core Constant Currency Operating Profit % Change, non-GAAP measure
(a)
(8)
3
13
17
6
25
3
3
(a)
A financial measure that is not in accordance with GAAP. See pages A-5 through A-6 for further discussion.
(b)
Represents the adjustment needed to reflect translation of operating profit using prior-year period foreign currency exchange rates.
Note – Amounts may not sum due to rounding.
A - 10
PepsiCo, Inc. and Subsidiaries
Reconciliation of GAAP and Non-GAAP Information (continued)
Certain Line Items by Segment (continued)
36 Weeks Ended September 6, 2025
(dollars in millions, unaudited)
PFNA
PBNA
IB Franchise
EMEA
LatAm Foods
Asia Pacific Foods
Corporate Unallocated Expenses
Total
Reported Cost of Sales, GAAP measure
$
7,478
$
9,108
$
1,017
$
6,920
$
2,906
$
1,905
$
9
$
29,343
Mark-to-market net impact
—
—
—
—
—
—
(9)
(9)
Restructuring and impairment charges
(102)
(6)
—
(11)
—
—
—
(119)
Acquisition and divestiture-related charges/credits
—
(46)
—
—
—
—
—
(46)
Core Cost of Sales, non-GAAP measure
(a)
$
7,376
$
9,056
$
1,017
$
6,909
$
2,906
$
1,905
$
—
$
29,169
Gross Margin
Reported Gross Profit, GAAP measure
$
11,737
$
10,891
$
2,401
$
5,026
$
3,959
$
1,234
$
(9)
$
35,239
54.6
%
Mark-to-market net impact
—
—
—
—
—
—
9
9
—
Restructuring and impairment charges
102
6
—
11
—
—
—
119
0.2
Acquisition and divestiture-related charges/credits
—
46
—
—
—
—
—
46
0.1
Core Gross Profit, non-GAAP measure
(a)
$
11,839
$
10,943
$
2,401
$
5,037
$
3,959
$
1,234
$
—
$
35,413
54.8
%
Reported Selling, General and Administrative Expenses, GAAP measure
$
7,274
$
8,752
$
1,080
$
3,465
$
2,658
$
833
$
1,243
$
25,305
Mark-to-market net impact
—
—
—
—
—
—
17
17
Restructuring and impairment charges
(45)
(186)
(7)
(107)
(36)
(9)
(45)
(435)
Acquisition and divestiture-related charges/credits
(23)
(189)
—
—
—
—
—
(212)
Impairment and other charges
—
2
—
(19)
—
—
—
(17)
Indirect and income tax impact
—
—
—
—
(82)
—
—
(82)
Core Selling, General and Administrative Expenses, non-GAAP measure
(a)
$
7,206
$
8,379
$
1,073
$
3,339
$
2,540
$
824
$
1,215
$
24,576
Reported Impairment of Intangible Assets, GAAP measure
$
—
$
1,589
$
73
$
251
$
—
$
80
$
—
$
1,993
Acquisition and divestiture-related charges/credits
—
(50)
—
—
—
—
—
(50)
Impairment and other charges
—
(1,539)
(73)
(251)
—
(80)
—
(1,943)
Core Impairment of Intangible Assets, non-GAAP measure
(a)
$
—
$
—
$
—
$
—
$
—
$
—
$
—
$
—
Operating Margin
Reported Operating Profit, GAAP measure
$
4,463
$
550
$
1,248
$
1,310
$
1,301
$
321
$
(1,252)
$
7,941
12.3
%
Mark-to-market net impact
—
—
—
—
—
—
(8)
(8)
—
Restructuring and impairment charges
147
192
7
118
36
9
45
554
0.9
Acquisition and divestiture-related charges/credits
23
285
—
—
—
—
—
308
0.5
Impairment and other charges
—
1,537
73
270
—
80
—
1,960
3.0
Indirect and income tax impact
—
—
—
—
82
—
—
82
0.1
Core Operating Profit, non-GAAP measure
(a)
$
4,633
$
2,564
$
1,328
$
1,698
$
1,419
$
410
$
(1,215)
$
10,837
16.8
%
(a)
A financial measure that is not in accordance with GAAP. See pages A-5 through A-6 for further discussion.
Note – Amounts may not sum due to rounding.
A - 11
PepsiCo, Inc. and Subsidiaries
Reconciliation of GAAP and Non-GAAP Information (continued)
Certain Line Items
12 Weeks Ended September 5, 2026 and September 6, 2025
(dollars in millions, except per share amounts, unaudited)
12 Weeks Ended 9/5/2026
Other pension and retiree medical benefits (expense)/ income
Provision for income taxes
(a)
Net income attributable to PepsiCo
Net income attributable to PepsiCo per common share - diluted
Effective tax rate
(b)
Reported, GAAP measure
$
(114)
$
834
$
3,048
$
2.23
21.4
%
Items Affecting Comparability
Mark-to-market net impact
—
(19)
(60)
(0.04)
(0.1)
Restructuring and impairment charges
(7)
36
149
0.11
(0.1)
Acquisition and divestiture-related charges/credits
—
(23)
(73)
(0.05)
(0.1)
Pension and retiree medical-related impact
179
40
139
0.10
—
Core, non-GAAP measure
(c)
$
58
$
868
$
3,203
$
2.34
21.2
%
12 Weeks Ended 9/6/2025
Other pension and retiree medical benefits income
Provision for income taxes
(a)
Net income attributable to PepsiCo
Net income attributable to PepsiCo per common share - diluted
Effective tax rate
(b)
Reported, GAAP measure
$
26
$
713
$
2,603
$
1.90
21.4
%
Items Affecting Comparability
Mark-to-market net impact
—
6
17
0.01
—
Restructuring and impairment charges
(1)
25
116
0.08
(0.1)
Acquisition and divestiture-related charges/credits
—
52
169
0.12
0.3
Impairment and other charges
—
8
92
0.07
(0.4)
Indirect and income tax impact
(d)
—
(47)
129
0.09
(1.9)
Pension and retiree medical-related impact
13
2
11
0.01
—
Core, non-GAAP measure
(c)
$
38
$
759
$
3,137
$
2.29
19.4
%
(a)
Provision for income taxes is the expected tax charge/benefit on the underlying item based on the tax laws and income tax rates applicable to the underlying item in its corresponding tax jurisdiction.
(b)
The impact of items affecting comparability on our effective tax rate represents the difference in the effective tax rate resulting from a higher or lower tax rate as applicable to the items affecting comparability.
(c)
A financial measure that is not in accordance with GAAP. See pages A-5 through A-6 for further discussion.
(d)
Provision for income taxes reflects the unfavorable impact of an income tax audit settlement in our LatAm Foods segment.
Note – Amounts may not sum due to rounding.
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PepsiCo, Inc. and Subsidiaries
Reconciliation of GAAP and Non-GAAP Information (continued)
Certain Line Items (continued)
36 Weeks Ended September 5, 2026 and September 6, 2025
(dollars in millions, except per share amounts, unaudited)
36 Weeks Ended 9/5/2026
Other pension and retiree medical benefits income
Provision for income taxes
(a)
Net income attributable to PepsiCo
Net income attributable to PepsiCo per common share - diluted
Effective tax rate
(b)
Reported, GAAP measure
$
3
$
2,314
$
8,356
$
6.10
21.6
%
Items Affecting Comparability
Mark-to-market net impact
—
(53)
(168)
(0.12)
(0.1)
Restructuring and impairment charges
(6)
77
290
0.21
—
Acquisition and divestiture-related charges/credits
—
(60)
(194)
(0.14)
(0.1)
Pension and retiree medical-related impact
179
40
139
0.10
—
Core, non-GAAP measure
(c)
$
176
$
2,318
$
8,423
$
6.15
21.5
%
36 Weeks Ended 9/6/2025
Other pension and retiree medical benefits income
Provision for income taxes
(a)
Net income attributable to PepsiCo
Net income attributable to PepsiCo per common share - diluted
Effective tax rate
(b)
Reported, GAAP measure
$
91
$
1,504
$
5,700
$
4.15
20.8
%
Items Affecting Comparability
Mark-to-market net impact
—
(2)
(6)
—
—
Restructuring and impairment charges
13
100
467
0.34
(0.2)
Acquisition and divestiture-related charges/credits
—
72
236
0.17
0.1
Impairment and other charges
—
421
1,539
1.12
0.4
Indirect and income tax impact
(d)
—
(47)
129
0.09
(0.9)
Pension and retiree medical-related impact
12
2
10
0.01
—
Core, non-GAAP measure
(c)
$
116
$
2,050
$
8,075
$
5.88
20.2
%
(a)
Provision for income taxes is the expected tax charge/benefit on the underlying item based on the tax laws and income tax rates applicable to the underlying item in its corresponding tax jurisdiction.
(b)
The impact of items affecting comparability on our effective tax rate represents the difference in the effective tax rate resulting from a higher or lower tax rate as applicable to the items affecting comparability.
(c)
A financial measure that is not in accordance with GAAP. See pages A-5 through A-6 for further discussion.
(d)
Provision for income taxes reflects the unfavorable impact of an income tax audit settlement in our LatAm Foods segment.
Note – Amounts may not sum due to rounding.
A - 13
Cautionary Statement
Statements in this communication that are “forward-looking statements,” including our 2026 guidance and outlook are based on currently available information, operating plans and projections about future events and trends. Terminology such as “aim,” “anticipate,” “believe,” “drive,” “estimate,” “expect,” “expressed confidence,” “forecast,” “future,” “goal,” “guidance,” “intend,” “may,” “objective,” “outlook,” “plan,” “position,” “potential,” “project,” “seek,” “should,” “strategy,” “target,” “will” or similar statements or variations of such words and other similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such terms. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from those predicted in such forward-looking statements. Such risks and uncertainties include, but are not limited to: future demand for PepsiCo’s products; damage to PepsiCo’s reputation or brand image; product recalls or other issues or concerns with respect to product quality and safety; PepsiCo’s ability to compete effectively; PepsiCo’s ability to attract, develop and maintain a highly skilled workforce or effectively manage changes in our workforce; water scarcity; changes in the retail landscape or in sales to any key customer; disruption of PepsiCo’s manufacturing operations or supply chain, including increased commodity, packaging, transportation, labor and other input costs; political, social or geopolitical conditions in the markets where PepsiCo’s products are made, manufactured, distributed or sold; PepsiCo’s ability to grow its business in developing and emerging markets; changes in economic conditions in the countries in which PepsiCo operates; changes in tariffs and global trade relations; future cyber incidents and other disruptions to our information systems; failure to successfully complete or manage strategic transactions; PepsiCo’s reliance on third-party service providers and enterprise-wide systems; climate change or measures to address climate change and other sustainability matters; strikes or work stoppages; failure to realize benefits from PepsiCo’s productivity initiatives or organizational restructurings; deterioration in estimates and underlying assumptions regarding future performance of our business or investments that can result in impairment charges; fluctuations or other changes in exchange rates; any downgrade or potential downgrade of PepsiCo’s credit ratings; imposition or proposed imposition of new or increased taxes aimed at PepsiCo’s products; imposition of limitations on the marketing or sale of PepsiCo’s products; changes in laws and regulations related to the use or disposal of plastics or other packaging materials; failure to comply with personal data protection and privacy laws; increase in income tax rates, changes in income tax laws or disagreements with tax authorities; failure to adequately protect PepsiCo’s intellectual property rights or infringement on intellectual property rights of others; failure to comply with applicable laws and regulations; and potential liabilities and costs from litigation, claims, legal or regulatory proceedings, inquiries or investigations.
For additional information on these and other factors that could cause PepsiCo’s actual results to materially differ from those set forth herein, please see PepsiCo’s filings with the SEC, including its most recent annual report on Form 10-K and subsequent reports on Forms 10-Q and 8-K. Investors are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date they are made. We undertake no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.
A - 14