10-Q · July 8, 2026
PepsiCo reported solid performance in Q2 2026 with revenue of $22.73 billion, representing a decrease of 1.1% compared to Q1 2026 but an increase of 5.8% from Q2 2025. Gross margin slightly improved to 54.7%, and…
Earnings analysis · 10-Q
PEP earnings analysis
Filed October 7, 2026 · Our reading of the company's report
The latest report
The supplied 10-Q excerpt does not contain the income statement, balance sheet, cash flow statement, segment results or MD&A needed to assess Q3 2026 operating trends, so revenue, margins, EPS and free cash flow are not…
Read full summary
The supplied 10-Q excerpt does not contain the income statement, balance sheet, cash flow statement, segment results or MD&A needed to assess Q3 2026 operating trends, so revenue, margins, EPS and free cash flow are not reported here. PepsiCo repurchased 1.9 million shares at an average price of $140.08, leaving $9.251 billion under its authorization. The filing reports no material changes to the risk factors in the 2025 Form 10-K, while highlighting continued ERP migration and an appeal in the Baltimore Matter.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
What stood out
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Continued Share Repurchases
PepsiCo repurchased 1.9 million shares during the 12 weeks ended September 5, 2026, at an average price of $140.08 per share. The company had $9.251 billion remaining under its repurchase authorization at period-end.
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Baltimore Claim Narrowed
The Baltimore Matter’s remaining public nuisance claim was dismissed on July 21, 2026; plaintiffs filed an appeal on August 18, 2026. Management states that the outcome of the Baltimore Matter and other proceedings is not expected to have a material adverse effect on financial condition, results of operations or cash flows.
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ERP Transformation Continues
Management continued implementing ERP systems during the 12 weeks ended September 5, 2026, as part of a global business transformation expected to continue in phases over the next several years. Management concluded the changes had no adverse effect on internal control over financial reporting.
What to watch
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Multi-Year ERP Execution Risk
ERP implementations materially affected internal control over financial reporting during the 12 weeks ended September 5, 2026, and PepsiCo expects implementation to continue over the next several years. Although management states no adverse effect is expected, prolonged system migration creates execution and control-monitoring risk.
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Baltimore Litigation Appeal
The Baltimore Matter remains subject to appellate proceedings after plaintiffs filed a notice of appeal on August 18, 2026. The filing states that management cannot predict the outcome with certainty, despite expecting no material adverse effect.
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Capital Allocation Flexibility
The company repurchased 1.9 million shares for approximately $267 million, based on the reported 1.9 million shares and $140.08 average price, while $9.251 billion remained authorized. Continued buybacks could reduce financial flexibility if operating cash generation or liquidity weakens.
Management's outlook
The provided 10-Q excerpt does not include quantitative revenue or EPS guidance. Prior guidance from the July 8, 2026 8-K was not updated in the supplied filing text.
Earlier filings 4
10-Q · April 16, 2026
PepsiCo reported solid Q1 results with net revenue of $19,443 million (vs $17,919 million a year ago) and operating profit of $3,213 million (vs $2,583 million). Diluted EPS rose to $1.70 from $1.33, and operating…
10-Q · July 17, 2025
PepsiCo reported 12-week net revenue of $22,726 million, up $225 million (+1.0%) versus the prior-year quarter, but GAAP diluted EPS fell to $0.92 from $2.23 a year ago amid large impairment and restructuring charges.…
10-Q · July 11, 2024
PepsiCo reported mixed-but-solid quarter: net revenue of $22,501 million (up $179 million vs $22,322 million a year ago), with gross profit rising to $12,582 million and operating profit increasing to $4,048 million.…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.