PepsiCo Inc. (NASDAQ:PEP) delivered first-quarter results on Thursday that came in ahead of analyst expectations.
The company reported adjusted earnings per share of $1.61, above the consensus estimate of $1.55. Revenue reached $19.44 billion, exceeding forecasts of $18.94 billion and representing an 8.5% increase from $17.91 billion in the same period last year.
Organic revenue rose 2.6%, showing an improvement compared to recent quarters. Chairman and CEO Ramon Laguarta said, “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.” Growth was supported by effective pricing strategies and modest volume gains, with North America delivering sequential improvement across both food and beverage categories.
Operating profit climbed 24% to $3.21 billion, while core operating profit increased 9% to $3.05 billion. Core operating margin edged up 10 basis points to 15.7%, helped by productivity efficiencies and favorable foreign exchange effects, though partly offset by higher operating costs. GAAP earnings per share rose 27% to $1.70, while core EPS increased 9% from $1.48 in the prior-year quarter.
PepsiCo reaffirmed its fiscal 2026 outlook, projecting organic revenue growth of 2% to 4% and core EPS growth of 4% to 6% on a constant currency basis. The midpoint of the EPS guidance range, at 5%, aligns with company expectations. The group also expects currency translation to add around 1 percentage point to both reported revenue and core EPS growth.
For 2026, PepsiCo plans to return approximately $8.9 billion to shareholders, including $7.9 billion in dividends and $1.0 billion in share buybacks, alongside a planned 4% increase in its dividend starting in June 2026.