PepsiCo, Inc. (PEP) Announced Q1 2026 Earnings on April 16, 2026, Reporting "organic revenue increase, 2.6%".

For the first quarter, management noted that for the total company, "core operating margin increased about 10 basis points". Management stated, "We had organic revenue increase, 2.6%, core EPS increased 9%". The PBNA segment's total business grew 9%, reflecting a combination of organic revenue growth of 2% plus 7 points of additional platforms that are now in the distribution system. In the PFNA segment, the company "grew volume 2%" and "grew occasions units 4%", increasing by 300 million new occasions compared to the first quarter of last year.

Regarding external volatility and the Iran conflict, management stated, "We've had no major issues from a supply chain standpoint". The company affirmed its full year top line guidance, stating, "We guided 2% to 4% and the upper end of that in the towards the back half of the year". To combat potential inflation, the company expects to leverage its infrastructure, push harder on productivity, and utilize options with price pack architecture.

Management also highlighted an ongoing strategy of "reducing cost, cost per unit and overall cost for the food business".The company discussed momentum across its product lines, noting that the permissible portfolio is growing double digit in brands like SunChips and Smartfood. In the beverage segment, the company is participating in the energy portfolio through its CELSIUS investment and distribution, while Gatorade and Propel are gaining share.

Management also outlined a global commercial strategy for the summer involving a World Cup activation, which features the "no Lays no game" campaign and Quaker brand participation in stadiums.