PepsiCo (NASDAQ:PEP) reported a robust start to the 2026 fiscal year, posting a significant double-digit increase in earnings per share as the company navigated a stabilizing global supply chain and continued consumer demand for its convenience brands.
Net revenue for the first quarter rose 8.5%, while organic revenue—which strips out the impacts of acquisitions, divestitures, and currency fluctuations—grew by 2.6%.
The company’s bottom-line performance was particularly strong, with reported earnings per share (EPS) increasing 27% year-over-year.
On a core basis, which provides a clearer view of underlying operating performance, EPS rose 9%, while core constant currency EPS saw a 5% uptick.
The results highlight PepsiCo's ability to maintain margins through productivity initiatives and disciplined cost management across its Frito-Lay North America and international beverage divisions.
Operating results were supported by steady volume performance in key emerging markets and a diversified portfolio that continues to capture a wide range of "snacking occasions."
Despite varied macroeconomic conditions globally, the company’s core brands, including Pepsi, Quaker, and Gatorade, maintained strong market positions.
Looking ahead, PepsiCo affirmed its previously issued financial guidance for the full 2026 fiscal year.
The company expects to continue benefiting from international expansion and its ongoing investments in digital capabilities and manufacturing automation.