PepsiCo Inc. Earnings Summary — Q1 2026

• Revenue for Q1 2026 grew 8.5% YoY to $19.44 billion, reversing the slight decline seen in the prior year's first quarter.
• Net Income returned to positive YoY growth, rising nearly 14% compared to Q1 2025, suggesting easing margin pressures.
• Operating Income of $3.21 billion shows a significant recovery from the mid-2025 lows when margins dipped due to seasonal and accounting adjustments.
• Selling, General & Administrative expenses remained disciplined at $7.52 billion, roughly flat compared to Q1 2025 despite higher revenue.
• The company continues its share reduction strategy, with basic shares outstanding decreasing 0.36% year-over-year.
• Interest expense remains a headword at $301 million for the quarter, reflecting the cost of the $46 billion debt load reported in recent annual cycles.

Management remains focused on the 'PepsiCo Positive' (pep+) initiative and anticipates continued resilience through pricing power and 'better-for-you' snack diversification.

Improving

A return to strong single-digit revenue growth and double-digit profit growth in Q1 2026 marks a recovery from the margin compression experienced throughout fiscal 2025.

PepsiCo is positioned as a mature compounder, prioritizing portfolio balance between Frito-Lay and beverages to mitigate commodity volatility and regulatory headwinds regarding sugar.