AI Takeaway
PepsiCo delivered strong Q2 FY2026 (12 weeks ended June 13, 2026) results with net revenue up 6% to $24.18B and net income more than doubling to $2.98B, largely reflecting the absence of prior-year impairment charges on the Rockstar and Be & Cheery brands alongside productivity savings and effective net pricing.
Revenue
$24.18B
++6.40% YoY
EPS (Basic)
$2.18
++136.96% YoY
Gross Margin
54.2%
-0.44% YoY
Operating Income
$4.02B
++124.87% YoY
Filed · Source: SEC EDGAR 10-Q filing
12-week operating profit rose 125% to $4,023M (16.6% margin vs 7.9% prior year), primarily driven by prior-year impairment charges related to the Rockstar and Be & Cheery brands, productivity savings, effective net pricing, lower restructuring charges and a favorable net impact of acquisition and divestiture-related charges/credits, partially offset by certain operating cost increases.
Source: 10-Q Item 2 MD&A
PBNA (Beverages North America) net revenue increased 7% in the 12 weeks despite a 4% organic volume decline (4% NCB decline, 3% CSD decline), driven by favorable net impact of acquisitions/divestitures (including poppi) and effective net pricing; operating profit improvement reflected the prior-year Rockstar impairment and a 3-point gain on an asset sale.
Source: 10-Q Item 2 MD&A
Favorable foreign exchange contributed 2 percentage points to 12-week net revenue growth, primarily from Mexican peso and Russian ruble appreciation, partially offset by Turkish lira weakness. Russia accounted for 6% of consolidated net revenue in the 12 weeks, 6% of consolidated assets, 21% of cash and equivalents, and 38% of accumulated currency translation adjustment loss as of June 13, 2026.
Source: 10-Q Item 2 MD&A
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Upgrade to unlockRussia accounted for 6% of consolidated net revenue, 6% of consolidated assets including 21% of cash and cash equivalents, and 38% of the accumulated currency translation adjustment loss as of June 13, 2026. Volatile geopolitical conditions, sanctions, currency controls and export restrictions in Russia and other markets (Argentina, Brazil, China, Mexico, Middle East, Turkey, Ukraine) continue to create challenging operating environments.
Source: 10-Q Item 2 MD&A
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Upgrade to unlock| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $24.18B | $22.73B | +6.40% |
Cost of Revenue | $11.07B | $10.3B | +7.43% |
Gross Profit | $13.11B | $12.42B | +5.55% |
Operating Income | $4.02B | $1.79B | +124.87% |
Net Income | $2.98B | $1.26B | +136.03% |
EPS (Basic) | $2.18 | $0.92 | +136.96% |
EPS (Diluted) | $2.18 | $0.92 | +136.96% |
SG&A Expense | $9.09B | $8.77B | +3.59% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $112.19B | $105.34B | +6.50% |
Current Assets | $32.77B | $28.21B | +16.18% |
Total Liabilities | $89.92B | $86.79B | +3.61% |
Current Liabilities | $35.11B | $36.4B | -3.54% |
Stockholders' Equity | $22.1B | $18.42B | +19.98% |
Cash & Equivalents | $10.25B | $7.63B | +34.33% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash FlowYTD | $2.37B | $996M | +137.45% |
Investing Cash FlowYTD | $-1.39B | $-4.13B | +66.27% |
Financing Cash FlowYTD | $-130M | $1.87B | -106.96% |
Dividends PaidYTD | $3.91B | $3.74B | +4.57% |
Share BuybacksYTD | $479M | $494M | -3.04% |
D&AYTD | $1.64B | $1.49B | +9.93% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 54.2% | 54.7% | -0.44% |
Operating Margin | 16.6% | 7.9% | +8.76% |
Net Margin | 12.3% | — | — |
ROE | 13.5% | — | — |
ROA | 2.7% | — | — |
Current Ratio | $0.934 | — | — |
Debt to Equity | $4.069 | — | — |
PepsiCo delivered a strong Q1 2026 with revenue up 8.5% YoY to $19.4B and net income surging 26.9% to $2.3B, driven by operating leverage as SG&A growth was held to just 1.5% while operating income jumped 24.4%.
PepsiCo reported FY2025 revenue of $93.9B (+2.3% YoY), but net income fell 14.0% to $8.2B and operating income dropped 10.8% to $11.5B, reflecting significant margin compression from rising costs and elevated SG&A spending.
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The filing does not disclose analyst consensus estimates, so a direct beat/miss comparison cannot be made from this 10-Q. However, PepsiCo reported diluted EPS of $2.18, up 137% from $0.92 a year ago, and revenue of $24.18B, up 6.4% year-over-year.
Net income attributable to PepsiCo rose 136% to $2.98B primarily because the prior-year quarter included large impairment charges related to the Rockstar and Be & Cheery brands, along with higher restructuring charges, that did not recur this year. Productivity savings and effective net pricing also contributed to the improvement.
Russia accounted for 6% of PepsiCo's consolidated net revenue and 6% of consolidated assets, including 21% of cash and cash equivalents, as of June 13, 2026, per the 10-Q. The filing also notes 38% of accumulated currency translation adjustment loss relates to Russia, highlighting concentrated geopolitical and currency risk.
In the 12 weeks ended June 13, 2026, PFNA revenue declined 2%, PBNA grew 7%, IB Franchise grew 11%, EMEA grew 10%, LatAm Foods grew 15%, and Asia Pacific Foods grew 12%, per the segment review in the 10-Q MD&A. Total reported net revenue growth was 6%, with organic revenue growth of 2%.
Key risks discussed include exposure to Russia operations (6% of revenue and assets), uncertainty around U.S. tariffs following a Supreme Court ruling invalidating certain IEEPA tariffs, the new OECD global minimum tax raising the effective tax rate to 22.0%, and ongoing litigation including the Baltimore public nuisance claim. PBNA also saw a 4% organic volume decline in the quarter despite revenue growth.