# PepsiCo, Inc. (PEP) - Current Events ## Filings that contain financial statements Each of the following Form 8-K filings furnishes an earnings press release (Exhibit 99.1) containing a condensed income statement, cash flow statement and balance sheet, plus non-GAAP reconciliations. - Form 8-K filed October 8, 2026, accession 0000077476-26-000050: third quarter 2026 (12 and 36 weeks ended September 5, 2026). - Form 8-K filed July 9, 2026, accession 0000077476-26-000037: second quarter 2026 (12 and 24 weeks ended June 13, 2026). - Form 8-K filed April 16, 2026, accession 0000077476-26-000019: first quarter 2026 (12 weeks ended March 21, 2026). - Form 8-K filed February 3, 2026, accession 0000077476-26-000009: fourth quarter and full year 2025 (16 and 52 weeks ended December 27, 2025). ## Earnings and guidance - **October 8, 2026 - third quarter 2026 results and guidance change (0000077476-26-000050).** Net revenue was $25,274 million, up 5.6%, with organic revenue up 3.1%. Operating profit was $4,260 million (up 19%); EPS was $2.23 (up 17%) and core EPS was $2.34 (up 2%). Core operating margin was 16.9%, down 35 basis points, and core operating profit included a 4-percentage-point favorable impact from tariff refunds. Year to date, net revenue was $68,898 million (up 6.7%), organic revenue was up 2.7%, EPS was $6.10 (up 47%) and core EPS was $6.15 (up 5%). The company updated full-year 2026 guidance: organic revenue approximately +3% (previously +2% to +4%); net revenue approximately +6% (previously +4% to +6%); core constant currency EPS +1% to +2% (previously the low end of +4% to +6%); core EPS +2.5% to +3.5% (previously the low end of +5% to +7%); core effective tax rate approximately 21% (previously approximately 22%). Capital spending (below 5% of net revenue), free cash flow conversion (at least 80%) and cash returns to shareholders ($8.9 billion, made up of $7.9 billion of dividends and $1.0 billion of share repurchases) were unchanged. Management said additional structural cost reduction actions are being identified and will be implemented in the coming months. - **July 9, 2026 - second quarter 2026 results (0000077476-26-000037).** Net revenue rose 6.4% with organic revenue up 2.4%; EPS rose 137% and core EPS rose 4%. Year to date, net revenue rose 7.3%, EPS rose 72% and core EPS rose 6%. The company affirmed its full-year 2026 guidance. The EPS increase largely reflected the absence of prior-year impairment charges on the Rockstar and Be & Cheery brands. - **April 16, 2026 - first quarter 2026 results (0000077476-26-000019).** Net revenue was $19,443 million, up 8.5%, with organic revenue up 2.6%; EPS rose 27% and core EPS rose 9%. The company affirmed its full-year 2026 guidance. - **February 3, 2026 - fourth quarter and full year 2025 results (0000077476-26-000009).** Full-year 2025 reported EPS was $6.00 (down 14%) and core EPS was $8.14; organic revenue rose 1.7%. The company affirmed its 2026 outlook (organic revenue +2% to +4%, core constant currency EPS +4% to +6%, free cash flow conversion of at least 80%). ## Capital actions - **February 3, 2026 - dividend increase and new buyback (0000077476-26-000009).** The annualized dividend was raised 4% to $5.92 per share from $5.69, effective with the June 2026 payment, the 54th consecutive annual increase. The board authorized a new repurchase program of up to $10 billion of common stock through February 28, 2030. The company expects 2026 cash returns of about $8.9 billion ($7.9 billion of dividends and $1.0 billion of repurchases). - **February 11, 2026 - euro senior notes issued (0001104659-26-013379).** PepsiCo issued EUR 500 million Floating Rate Notes due 2028 (three-month EURIBOR plus 0.230%), EUR 650 million 3.300% Senior Notes due 2034, EUR 850 million 3.700% Senior Notes due 2038 and EUR 500 million 4.150% Senior Notes due 2047. Net proceeds were approximately EUR 2,482 million, for general corporate purposes including repayment of commercial paper. - **May 22, 2026 - credit facilities replaced (0001104659-26-065758).** PepsiCo terminated its $5.0 billion 364-day and $5.0 billion five-year revolving credit agreements dated May 23, 2025 (no borrowings outstanding) and entered into new facilities of the same size with Citibank, N.A. as administrative agent. The new 364-day facility expires May 21, 2027 and the new five-year facility expires May 22, 2031; each can be increased to up to $5.75 billion. ## Strategy and shareholder engagement - **December 8, 2025 - shareholder value priorities and preliminary 2026 outlook (0000077476-25-000059).** PepsiCo announced commercial and financial priorities following a board-overseen strategic review and constructive engagement with shareholder Elliott Investment Management, which said it supports the plan. Actions focus on PepsiCo Foods North America: sharper everyday value, an innovation agenda, cost reduction, and a reduction of nearly 20% of U.S. SKUs by early 2026. The release set expectations of at least 100 basis points of core operating margin expansion over the next three fiscal years, free cash flow conversion of at least 80% in 2026 and at least 90% in 2027, a commitment to continued board refreshment, and a review of North America supply chain and go-to-market systems, with an update to investors planned for late 2026. ## Management and board - **September 17, 2026 - new director (0000077476-26-000042).** The board elected Joaquin Duato, Chairman and CEO of Johnson & Johnson, as an independent director effective December 1, 2026, to serve on the Audit Committee. - **May 8, 2026 - annual meeting results (0000077476-26-000024).** At the May 6, 2026 meeting, shareholders elected all 13 director nominees, ratified KPMG LLP as auditor for fiscal 2026 and approved executive compensation on an advisory basis; three shareholder proposals (independent board chair, human rights oversight report, animal treatment in the supply chain report) were rejected. - **December 15, 2025 (0000077476-25-000062).** Steven Williams, CEO of North America, moved to Executive Vice President and Vice Chairman, Global Chief Commercial Officer and Corporate Affairs, effective December 28, 2025. - **October 9, 2025 (0000077476-25-000055).** The board appointed Steve Schmitt as Executive Vice President and Chief Financial Officer effective November 10, 2025, and director Darren Walker gave notice of his retirement from the board effective November 19, 2025. ## Mergers and acquisitions No acquisition or divestiture agreement was announced in the Form 8-K filings for fiscal 2026 to date. The third quarter release attributes part of 2026 revenue growth to acquisitions completed in 2025 (a 1.7-percentage-point net benefit in the quarter) and notes North America beverages growth from those acquisitions. Per the Form 10-Q for the third quarter of 2026 (0000077476-26-000048), the Celsius transaction was consummated on August 28, 2025, in which PepsiCo acquired convertible preferred shares of Celsius Holdings, Inc., transferred the Rockstar brand in the United States and Canada, and became exclusive distributor of Alani Nu in certain channels from the fourth quarter of 2025.