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Q1 26 EPS
$1.61
BEAT +3.84%
Est. $1.55
Q1 26 Revenue
$19.44B
BEAT +2.67%
Est. $18.94B
vs S&P Since Q1 26
-18.4%
TRAILING MARKET
PEP -12.0% vs S&P +6.4%
Market Reaction
Did PEP Beat Earnings? Q1 2026 Results
PepsiCo opened fiscal 2026 on a stronger-than-expected note, posting first-quarter core EPS of $1.61, beating the $1.54 consensus estimate by 4.26%, while revenue of $19.44 billion edged past the $18.92 billion forecast by 2.75%. The headline revenue… Read more PepsiCo opened fiscal 2026 on a stronger-than-expected note, posting first-quarter core EPS of $1.61, beating the $1.54 consensus estimate by 4.26%, while revenue of $19.44 billion edged past the $18.92 billion forecast by 2.75%. The headline revenue figure reflected an 8.5% reported year-over-year gain, a sharp contrast to the -14.4% decline when measured against a different prior-year basis, with the improvement driven in large part by a 3.4-percentage-point foreign exchange tailwind and contributions from recent acquisitions. Operating margin expanded 210 basis points to 16.5%, as productivity savings and net revenue growth more than offset rising operating costs. International segments were a particular bright spot, with EMEA core operating profit climbing 29% and Asia Pacific Foods surging 35%. Investors had been closely watching whether recent price cuts and product overhauls in the U.S. Business were gaining traction, and the modest organic volume growth in North America offered early encouraging signs. Looking ahead, PepsiCo reaffirmed its fiscal 2026 guidance for organic revenue growth of 2-4% and core constant currency EPS growth of 4-6%.
Key Takeaways
- • Organic revenue growth of 2.6% driven by effective net pricing and slight organic volume growth
- • 3.4-percentage-point foreign exchange translation benefit to net revenue
- • 2.5-percentage-point net benefit from acquisitions and divestitures
- • Productivity savings contributing to core operating profit growth
- • Innovation and affordability initiatives driving volume recovery in convenient foods
- • Strong international performance with each segment delivering sequential acceleration
PEP Forward Guidance & Outlook
PepsiCo affirmed its fiscal 2026 guidance: organic revenue growth of 2-4%; core constant currency EPS growth of 4-6%; core annual effective tax rate of approximately 22%; capital spending below 5% of net revenue; free cash flow conversion ratio of at least 80%; and total cash returns to shareholders of approximately $8.9 billion (dividends of $7.9 billion and share repurchases of $1.0 billion). The company expects a foreign exchange translation tailwind of approximately 1 percentage point to benefit reported net revenue and core EPS growth. Acquisitions net of divestitures from 2025 are expected to contribute 1 percentage point to reported net revenue growth. These assumptions imply net revenue growth of 4-6% and core EPS growth of approximately 5-7% in fiscal 2026, including the anticipated impact of global minimum tax regulations.
PEP YoY Financials
Q1 2026 vs Q1 2025, source: SEC Filings
PEP Revenue by Segment
With YoY comparisons, source: SEC Filings
“We are pleased with our first-quarter results, which featured an acceleration in both net revenue and organic revenue growth – with a notable improvement in convenient foods organic volume. An extensive commercial agenda, which includes the restaging of large global brands, innovation activity and certain affordability initiatives, is being executed well and business performance improved.”
— Ramon Laguarta, Q1 2026 Earnings Press Release
PEP Earnings Trends
PEP vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
PEP EPS Trend
Earnings per share: estimate vs actual
PEP Revenue Trend
Quarterly revenue: estimate vs actual
PEP Quarterly Results
5 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 26 BEAT | $1.55 | $1.61 | +3.84% | $19.44B | +2.67% |
| Q4 25 BEAT FY | $2.24 | $2.26 | +1.02% | $29.34B | +1.29% |
| FY Full Year | $8.11 | $8.14 | +0.33% | $93.93B | +0.56% |
| Q3 25 BEAT | $2.26 | $2.29 | +1.33% | $23.94B | +0.38% |
| Q2 25 BEAT | $2.03 | $2.12 | +4.33% | $22.73B | +1.92% |
| Q1 25 MISS | $1.49 | $1.48 | -0.76% | $17.92B | +1.07% |