What was PepsiCo's revenue and profit performance for the reported period?

For the 36 weeks ended September 5, 2026, PepsiCo reported a 7% increase in net revenue to $68.9 billion and a 45% increase in operating profit to $11.5 billion, compared to the same period in the previous year. This strong performance was driven by productivity savings, effective net pricing, and favorable acquisition/divestiture impacts, alongside the benefit of prior-year impairment charges.

How is PepsiCo returning value to its shareholders?

PepsiCo plans to return approximately $8.9 billion to shareholders in 2026, comprising dividends of approximately $7.9 billion and share repurchases of approximately $1.0 billion. This includes a 4% increase in its annualized dividend to $5.92 per share and a new $10 billion share repurchase program.

What are the key drivers behind the significant operating profit increase?

The substantial increase in operating profit is attributed to several factors, including productivity savings achieved through ongoing initiatives, prior-year impairment charges (which make the current year's comparison look more favorable), effective net pricing strategies, and positive impacts from acquisitions and divestitures. Favorable foreign exchange rates also contributed positively in certain segments.

Are there any significant charges or one-time items impacting the financial results?

Yes, the company incurred $367 million in restructuring and impairment charges for the 36 weeks ended September 5, 2026, primarily related to its 2019 Productivity Plan. Additionally, the prior year included significant impairment charges related to the Rockstar and Be & Cheery brands, which positively impacts the current year's year-over-year profit comparison. The company also noted a pension settlement charge in the current period.

PEP 10-Q Quarterly Report Q3 FY2026 — Revenue, Net Income, EPS

01—Abstract

Summary

Summary of the 10-Q filed October 8, 2026. Cited figures are marked; the original filing is the authoritative source.

PepsiCo, Inc. reported a strong financial performance for the 36 weeks ended September 5, 2026, with net revenue increasing by 7% to $68.9 billion^a and operating profit surging by 45% to $11.5 billion compared to the prior year period.

This growth was primarily driven by productivity savings, prior-year impairment charges, effective net pricing, and favorable acquisition/divestiture impacts. The company demonstrated robust cash generation, with net cash provided by operating activities increasing to $8.0 billion^b and free cash flow reaching $5.9 billion for the same period. Significant positive trends were observed across multiple segments, with particularly strong operating profit growth in PBNA (416%) and LatAm Foods (28%).

The company also continued its commitment to shareholder returns, with announced plans to return approximately $8.9 billion^c in 2026 through dividends and share repurchases. Despite some segment-level volume declines, overall revenue growth and profit expansion indicate resilient demand and effective cost management. Investors should note the ongoing impact of restructuring charges and the company's strategic initiatives to drive future efficiency.

02—Key points

Key Highlights

Net revenue increased by 7% to $68.9 billion for the 36 weeks ended September 5, 2026, up from $64.6 billion in the prior year.
Operating profit saw a substantial increase of 45% to $11.5 billion for the 36-week period, compared to $7.9 billion in the prior year.
Net cash provided by operating activities increased significantly to $8.0 billion for the 36-week period, up from $5.5 billion.
Free cash flow for the 36-week period was $5.9 billion, a notable increase from $3.2 billion in the prior year.
The company announced plans to return approximately $8.9 billion to shareholders in 2026, consisting of dividends and share repurchases.
PBNA segment operating profit surged by 416% for the 36-week period, largely due to prior-year impairment charges and favorable acquisition/divestiture impacts.
Restructuring and impairment charges totaled $367 million for the 36-week period, reflecting ongoing productivity initiatives.

03—Questions

Frequently Asked Questions

What was PepsiCo's revenue and profit performance for the reported period?
For the 36 weeks ended September 5, 2026, PepsiCo reported a 7% increase in net revenue to $68.9 billion and a 45% increase in operating profit to $11.5 billion, compared to the same period in the previous year. This strong performance was driven by productivity savings, effective net pricing, and favorable acquisition/divestiture impacts, alongside the benefit of prior-year impairment charges.
How is PepsiCo returning value to its shareholders?
PepsiCo plans to return approximately $8.9 billion to shareholders in 2026, comprising dividends of approximately $7.9 billion and share repurchases of approximately $1.0 billion. This includes a 4% increase in its annualized dividend to $5.92 per share and a new $10 billion share repurchase program.
What are the key drivers behind the significant operating profit increase?
The substantial increase in operating profit is attributed to several factors, including productivity savings achieved through ongoing initiatives, prior-year impairment charges (which make the current year's comparison look more favorable), effective net pricing strategies, and positive impacts from acquisitions and divestitures. Favorable foreign exchange rates also contributed positively in certain segments.
Are there any significant charges or one-time items impacting the financial results?
Yes, the company incurred $367 million in restructuring and impairment charges for the 36 weeks ended September 5, 2026, primarily related to its 2019 Productivity Plan. Additionally, the prior year included significant impairment charges related to the Rockstar and Be & Cheery brands, which positively impacts the current year's year-over-year profit comparison. The company also noted a pension settlement charge in the current period.

04—Continue

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