PepsiCo delivered adjusted EPS of $1.61, surpassing the $1.55 forecast, and reported revenue of $19.44 billion, up 8.5% year over year. GAAP EPS rose to $1.70 from $1.33 and operating profit climbed 24% to $3.21 billion with operating margin expanding 210 basis points to 16.5%.

North American snack volumes returned to growth, rising 2% as PepsiCo implemented up to 15% price reductions on major Frito-Lay brands. These affordability measures boosted retailer shelf presence and contributed to a 2.6% organic revenue gain, even as beverage volumes declined 2.5%.

Gatorade has been restructured under an Advanced Hydration System to clarify performance benefits—better, faster or longer hydration. New on-pack messaging will appear in coming weeks, sugar-reduced Gatorlyte will roll out nationally by 2027, and artificial colors will be removed from powder sticks in spring and select ready-to-drink flavors by fall.

PepsiCo reaffirmed its 2026 targets of 2%–4% organic revenue growth and 4%–6% core EPS growth, while committing $8.9 billion to dividends and share buybacks. Management highlighted input cost hedges protecting 2026 results and flagged ongoing inflationary pressures and competitive dynamics in the hydration and snack categories.