PepsiCo reported first-quarter results Thursday that topped Wall Street expectations, with its long-struggling North American food business finally showing signs of life.
PEPSICO $PEP Q1’26 EARNINGS HIGHLIGHTS
Revenue: $19.44B (Est. $18.94B)
; +8.5% Y/Y
Foods North America Revenue $6.33B, (Est. $6.27B)
— Wall St Engine (@wallstengine) April 16, 2026
Adjusted earnings came in at $1.61 per share, beating the $1.55 analyst estimate. Revenue of $19.44 billion also cleared the $18.94 billion consensus.
Net income attributable to the company rose to $2.33 billion, up from $1.83 billion a year ago. On a per-share basis, that’s $1.70 versus $1.33 last year.
Net sales climbed 8.5% year-over-year, helped along by the acquisition of Poppi and new distribution of Alani Nu energy drink. Strip out acquisitions, divestitures, and currency effects, and organic revenue grew 2.6%.
The stock edged up around 0.8% in premarket trading after the results.
For the first time in more than two years, Pepsi’s North American food unit — which covers Frito-Lay and Quaker Oats — posted volume growth. Volume rose 2% in the quarter.
That’s a notable turnaround. The division had been under pressure since inflation spiked in 2022, when repeated price hikes pushed budget-conscious shoppers toward cheaper alternatives. In February, Pepsi cut prices on Lay’s, Tostitos, Doritos, and Cheetos by up to 15% in an attempt to win back those customers. Early signs suggest it’s working.
North American beverages told a different story, with volume down 2.5% in the quarter. That unit includes Pepsi, Starry, and the newly acquired Poppi.
To revive Gatorade, the company said Thursday it plans to market the drink’s hydration benefits beyond athletes, launch a lower-sugar version, and begin removing artificial colors.
Pepsi has also been leaning into consumer trends around protein and fiber. New products include Pepsi Prebiotic, Starbucks Coffee & Protein, Doritos Protein, and SunChips Fiber.
PepsiCo left its full-year outlook unchanged. It still expects organic revenue to grow between 2% and 4%, with core constant currency EPS rising 4% to 6%.
But the company was careful to flag a more difficult backdrop. Executives cited ongoing geopolitical conflicts — particularly the war in the Middle East — as a source of growing economic uncertainty.
“The macroeconomic environment has become more volatile and uncertain because of ongoing geopolitical conflicts,” the company said in prepared remarks.
On input costs, management said its commodity hedging programs should provide some near-term protection on certain materials. Rising energy and packaging costs tied to supply chain disruptions remain a watch item.
CEO Ramon Laguarta struck a measured tone, saying the company was “encouraged with the resilience of the International business” while North America “continued to make progress.”
PEP stock has gained about 9% over the past 12 months — well behind the S&P 500’s 29% return over the same period.
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