PepsiCo, Inc. (PEP) Q3 FY2026 earnings

Reported results

• Q3 2026 net revenue increased 5.6% to $25,274 million; year-to-date net revenue increased 6.7% to $68,898 million (GAAP)
• Q3 2026 organic revenue increased 3.1%; year-to-date organic revenue increased 2.7% (non-GAAP)
• Q3 2026 GAAP operating profit increased 19% to $4,260 million; core operating profit increased 3% to $4,277 million (non-GAAP)
• Q3 2026 GAAP EPS increased 17% to $2.23; core EPS increased 2% to $2.34 (non-GAAP); core constant currency EPS increased 1.5% (non-GAAP)
• Year-to-date 2026 GAAP EPS increased 47% to $6.10; core EPS increased 5% to $6.15 (non-GAAP); core constant currency EPS increased 2% (non-GAAP)

Guidance

• Fiscal 2026 organic revenue approximately +3% (non-GAAP)
• Fiscal 2026 net revenue approximately +6% (GAAP)
• Fiscal 2026 core constant currency EPS growth +1% to +2% (non-GAAP)
• Fiscal 2026 core EPS growth +2.5% to +3.5% (non-GAAP)
• Fiscal 2026 core annual effective tax rate approximately 21% (non-GAAP)
• Fiscal 2026 foreign exchange translation approximately +1.5% to net revenue and core EPS growth (non-GAAP)
• Fiscal 2026 acquisitions net of divestitures approximately +1.5% to net revenue growth (non-GAAP)
• Fiscal 2026 capital spending below 5% of net revenue
• Fiscal 2026 free cash flow conversion ratio at least 80 percent
• Fiscal 2026 cash returns to shareholders $8.9 billion (comprised of dividends of $7.9 billion and share repurchases of $1.0 billion)

Notes

The company updated fiscal 2026 guidance in this release. Current guidance reflects revised expectations from previous guidance provided earlier in the year. Prior-year results included impairment charges of $133 million related primarily to the Rockstar brand (Q3 2025) and $1,993 million total impairment charges (year-to-date 2025) related to Rockstar and Be & Cheery brands.

Price and volatility reaction

The stock moved +2.3% on the print. No front-expiry chain was on file, so there is no straddle expected move. 30-day ATM implied volatility moved -3.0 vol points across the event (constant-maturity series — not the front-week crush).

Source

The figures above come from the earnings release the company filed with the SEC on 2026-10-07 (8-K, Item 2.02). Read the original filing on sec.gov.