Q1 2026 Earnings — Reported April 16, 2026 · Before Market Open · 54th Consecutive Dividend Increase
Revenue +8.5% to $19.4B · Operating Profit +24% · North America Foods Volume Inflection
PepsiCo delivered a clean beat across all key metrics. Net revenue of $19.4B (+8.5%) beat $18.95B consensus, aided by Poppi acquisition and Alani Nu distribution. Core EPS of $1.61 beat the $1.55 estimate by 3.9%. The headline story: North America convenient foods (PFNA) returned to 2% volume growth — adding 300M incremental consumption occasions — following targeted price cuts on Doritos and Lay's. Operating margin expanded 210bps to 16.5%. FY2026 guidance affirmed. 54th consecutive annual dividend increase confirmed. Stock +2% on the day.
Key Metrics — Q1 2026 Actuals (Official 8-K SEC Filing)
Net Revenue
$19.4B
+8.5% YoY
Organic Revenue Growth
+2.6%
Acceleration from prior Qs
Operating Profit
$3.21B
+24% YoY
Operating Margin
16.5%
+210bps YoY
Core EPS
$1.61
+8.8% YoY vs $1.48
Diluted EPS (GAAP)
$1.70
+27% YoY vs $1.34
Core EPS Beat
+3.9%
$1.61 actual vs $1.55 consensus
PFNA Volume Growth
+2%
Return to growth · +300M consumption occasions
FY2026 Cash Returns
$8.9B
Dividends + buybacks · affirmed
Dividend Increase Streak
54 Years
4% raise effective June 2026
Beat / Miss Matrix
Beats
Net RevenueEst. $18.95B$19.44B (+2.6%)
Core EPSEst. $1.55$1.61 (+3.9%)
GAAP EPSPrior year $1.34$1.70 (+27% YoY)
Operating ProfitPrior year $2,583M$3,213M (+24%)
Operating MarginQ1 2025: 14.4%16.5% (+210bps)
PFNA VolumeExpected near-flat+2% · +4% unit growth
Concerns
Organic Revenue GrowthGuided 2–4%+2.6% · low end of range
Macro Commentary—"More volatile and uncertain" globally
Beverages NA Organic—+2% organic vs +9% reported (acq.)
FX Headwinds—Core CC EPS only +5%
Core Operating Margin exp.—Only +10bps core (vs 210bps GAAP)
PFNA shelf resets—Only 50% complete — still in progress
P&L Summary — Q1 2026 vs Q1 2025 (Official 8-K SEC Filing)
Select Income Statement — 12 Weeks Ended March 21, 2026
Net Revenue$19,443M$17,919M+8.5%
Organic Revenue Growth+2.6%—Acceleration
Acq./Div. Revenue Impact~+7pp—Poppi + Alani Nu
Operating Profit$3,213M$2,583M+24%
Operating Margin16.5%14.4%+210bps
Core Operating Margin exp.+10bps—Underlying
Core EPS$1.61$1.48+8.8%
Core Constant Currency EPS+5%—FX drag ~3pp
GAAP Diluted EPS$1.70$1.34+27%
Cash Dividends Paid$1,966M$1,882M+4%
Share Repurchases$182M$183MStable
Cash & Equivalents (end Q1)$10,551M$8,319M+27%
Segment Performance & CEO Quote
North America Segments
PFNA revenue (Foods NA)Organic growth · vol +2%
PFNA volume growth+2% vol · +4% units · 300M occasions
PFNA shelf resets~50% complete — ongoing
PFNA innovation ACV40–50% in permissible/functional
PBNA revenue+9% reported (+2% organic)
PBNA key driversPoppi + Alani Nu (acquired/distrib.)
Away From Home growth3x company average
International & Portfolio
Asia Pacific FoodsGood performance
Europe, ME & AfricaSequential acceleration
International BeveragesSequential acceleration
Latin America FoodsResilient
Poppi acquisitionCompleted 2025 · functional beverage
Alani Nu distributionNew agreement · energy drink
Rockstar divestedPortfolio rationalization
"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. We are encouraged with the resilience of the International business while North America continued to make progress in the first quarter. We are affirming fiscal 2026 financial guidance and expected cash returns to shareholders."
Ramon Laguarta, Chairman & CEO · Q1 2026 Earnings Call, April 16, 2026
FY 2026 Guidance — Affirmed April 16, 2026
Full-Year 2026 Targets — All Affirmed Post Q1
Organic Revenue Growth
2–4%
FY 2026
Reported Revenue Growth
4–6%
Incl. M&A
Core EPS Growth
5–7%
FY 2026
Core CC EPS Growth
4–6%
Ex-FX
Total Cash Returns
~$8.9B ✓
Affirmed
Annual Dividend Increase
+4% ✓
June 2026 · 54th yr
PFNA Shelf Resets
~50% done
Ongoing
Positives & Concerns
Positives
▲North America convenient foods (PFNA) returned to 2% volume growth — adding 300 million incremental consumption occasions versus the prior year. After multiple quarters of volume pressure from elevated pricing, this inflection is the most important data point in the quarter for the investment thesis.
▲Operating margin expanded 210bps to 16.5% — reflecting productivity savings, favorable commodity derivative mark-to-market, and disciplined cost management. Operating profit grew 24% on only 8.5% revenue growth, demonstrating strong operating leverage.
▲54th consecutive annual dividend increase confirmed at 4% — effective with the June 2026 payment. Total FY2026 cash returns to shareholders of $8.9B (dividends + buybacks) underscores PepsiCo's capital allocation consistency through any macro environment.
▲Poppi (functional beverage) acquisition and Alani Nu distribution agreement position PBNA in the fastest-growing energy and wellness beverage categories — adding brand optionality without requiring organic R&D cycles.
▲International businesses delivered sequential revenue acceleration across every segment — Asia Pacific, EMEA, International Beverages, and Latin America — demonstrating geographic diversification is actively contributing to top-line momentum.
Concerns
▼Organic revenue growth of only +2.6% is at the low end of the 2–4% guidance range. While improving sequentially, the underlying volume/price mix remains fragile as consumers across income levels continue to trade down or reduce snack frequency.
▼Core constant currency EPS grew only +5% — foreign exchange headwinds consumed approximately 3 percentage points of core EPS growth. With significant international operations, FX volatility from a strong USD remains a structural earnings drag.
▼Management described the global economy as "more volatile and uncertain" due to the Middle East war — acknowledging macro headwinds that could affect consumer spending across both food and beverages in H2 2026.
▼PFNA shelf resets are only approximately 50% complete — meaning the bulk of the affordability and innovation reset is still in progress. Volume recovery sustainability depends on execution in the remaining 50% of shelf space, which carries execution risk through H2 2026.
▼PBNA reported revenue grew +9% but organic revenue grew only +2% — the majority of reported growth came from the Poppi acquisition and Alani Nu distribution. Underlying organic beverage demand in North America remains modest at best.
Analyst Coverage — Post Q1 2026
Wall Street Ratings — Post April 16, 2026
| Firm / Metric | Rating | Price Target | Note |
|---|
| Consensus (pre-Q1) | Hold | $168–170 | Limited upside expected pre-Q1; volume recovery was the catalyst |
| Post-Q1 bullish | Buy | $175–185 | PFNA volume inflection + margin expansion accelerates thesis |
| Q2 2026 EPS Consensus | — | $2.22 | Seasonally stronger quarter; next report July 16, 2026 |
| EPS TTM | — | $6.37 | P/E implicitly ~24x at ~$153 share price |
| FY2026 Core EPS guidance | Management | +5–7% growth | Affirmed · ~$8.00–8.20 implied FY EPS |
| Stock reaction (Apr 16) | +2% | ~$153–155 | Volume inflection the key catalyst for positive reaction |
Earnings Verdict
Volume Inflection Confirmed — North America Recovery on Track
PepsiCo's Q1 2026 delivered the key data point investors had been waiting for: North America convenient foods returned to 2% volume growth after multiple quarters of pressure. The affordability strategy — targeted price cuts on core multipacks, shelf resets, and functional/permissible innovation — is working, with 300 million incremental consumption occasions added. Operating margin expanded 210bps to 16.5% and EPS beat consensus across both core and GAAP measures. Management's affirmation of FY2026 guidance reinforces confidence in the trajectory. The concerns are real but manageable: organic revenue growth at only 2.6% leaves little room for error, FX is a persistent ~3pp drag, and the remaining 50% of PFNA shelf resets must execute cleanly in H2 2026. The macro commentary on global uncertainty — citing the Middle East conflict — is a risk factor for international segments. At ~$153 with a 54-year dividend growth streak and $8.9B in planned shareholder returns, PepsiCo remains one of the most consistent capital return vehicles in the consumer staples universe. Next earnings July 16, 2026.
Next Earnings
Jul 16, 2026