PepsiCo beats profit expectations with strong first quarter

Published: 2026-04-16 13:10:16 ET PEP

Published on 04/16/2026 at 01:10 pm EDT

Key takeaways

PepsiCo, just as in the previous quarter, exceeded expectations in the first quarter and reported higher revenue and profit than analysts had forecast. The drinks and snacks giant generated revenue of 19.4 billion dollars (16.5 billion euros), an increase of 8.5 per cent compared to the previous year, beating analysts’ estimates of 18.9 billion dollars (16.1 billion euros). Excluding currency fluctuations and acquisitions, revenue rose by a solid 2.6 per cent.

Strong earnings growth

Adjusted earnings per share also beat forecasts, coming in at 1.61 dollars, compared with the expected 1.54 dollars. This represented a significant improvement on the 1.48 dollars per share in the same quarter last year. PepsiCo’s net profit rose to 2.3 billion dollars (1.9 billion euros), from 1.8 billion dollars (1.5 billion euros) a year earlier.

Recent efforts by PepsiCo to win back market share in its snacks division have proved successful. The company implemented price cuts across its product range and repositioned several flagship brands such as Lay’s crisps and Gatorade. CEO Ramon Laguarta credited these strategic moves with the improved performance seen during the quarter.

International resilience

Laguarta expressed confidence in the resilience of PepsiCo’s international operations and pointed to ongoing progress in North America during the first quarter. Looking ahead, the company aims to execute its plans effectively while keeping costs under control in order to fund investments that will accelerate growth.

Despite this optimism, Laguarta acknowledged the increasing volatility and uncertainty in the macroeconomic environment. For the current financial year, PepsiCo is maintaining its forecast of 2 to 4 per cent organic revenue growth and a 4 to 6 per cent increase in adjusted earnings per share.

Shareholder returns

In addition, PepsiCo plans to return 8.9 billion dollars (7.6 billion euros) to shareholders through a combination of 7.9 billion dollars (6.7 billion euros) in dividend payments and 1 billion dollars (850 million euros) in share buybacks. Despite the strong financial results, PepsiCo’s share price slipped slightly in pre-market trading on Thursday. (fc)

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