PepsiCo Earnings Call Transcripts
Fiscal Year 2026
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Q3 organic revenue growth accelerated to 3.1%, led by international results and stronger volumes. Rising costs and mix pressured margins, while investment and productivity actions aim to revive North American growth.
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Revenue grew 7% and EPS rose 6% in the first half of 2026, driven by strong international performance and a turnaround in U.S. foods volume. Guidance is reaffirmed, with tariff refunds offsetting commodity inflation and productivity initiatives funding growth.
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The meeting covered board refreshment, strategic investments in AI and brand innovation, and strong financial performance with a 4% dividend increase. All director nominees and management proposals passed, while shareholder proposals on governance, human rights, and animal welfare did not.
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Sequential improvement in Q1 driven by strong North America Foods and international growth, with 2% PFNA volume growth and 9% PBNA growth. Guidance for 2%-4% organic revenue growth is maintained, with further acceleration expected into summer.
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The event highlighted a multi-year transformation focused on portfolio innovation, productivity, and sustainability, with strong momentum in both North America and international markets. Key growth drivers include health-focused product launches, away-from-home expansion, and technology-driven efficiency, supporting ambitious financial targets and continued dividend growth.
Fiscal Year 2025
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Accelerated affordability and innovation initiatives are driving volume and shelf space gains, with strong brand restaging and productivity funding growth. International and North American segments are expected to accelerate, supported by acquisitions and targeted investments.
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Management outlined ambitious 2026 guidance, emphasizing productivity, innovation, and affordability to drive growth, especially in North America Foods. Capital allocation remains disciplined, with CapEx below 5% of net revenue and free cash flow conversion expected to exceed 90% by 2027.
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Top-line growth is accelerating, driven by innovation, portfolio reshaping, and operational improvements, with margin expansion expected in Q4 and 2026. International and PBNA segments are key contributors, while cost optimization and technology investments support agility.
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Accelerated productivity and cost optimization are driving margin gains, with strong international growth and a focus on portfolio innovation and away-from-home channels. The outlook targets sequential top-line improvement and a return to long-term growth rates.
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The meeting highlighted resilient financial performance, with revenue and EPS growth, a 5% dividend increase, and continued investment in innovation and sustainability. All director nominees and proposals from management passed, while shareholder proposals on sweeteners, equity, biodiversity, and plastics did not.
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Q1 2025 saw solid international growth and margin gains in North America Beverages, but FLNA volumes declined and full-year earnings guidance was reduced due to tariffs and macro uncertainty. Portfolio innovation, cost management, and international investment remain key priorities.
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Revenue reached $92B in 2024, with strong international growth and double-digit expansion of key brands. Strategic investments in portfolio transformation, digitalization, and sustainability are driving productivity and innovation. Capital allocation remains focused on business investment, dividends, and disciplined M&A.
Fiscal Year 2024
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Reinvestment in Frito and innovation across snacks and beverages aim to restore growth, with international markets driving top-line and margin expansion. 2025 guidance is cautious due to global volatility, but long-term growth targets remain intact.
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Frito-Lay volumes improved in Q3, but margin declined due to increased investments. Full-year organic revenue guidance was revised down amid slower U.S. consumer recovery and geopolitical headwinds, though long-term growth in snacks and beverages remains robust.
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2024 guidance was revised to ~4% organic sales growth, with second-half recovery expected from Quaker's supply chain normalization, targeted value interventions in Frito-Lay, and continued international strength. Operating margin improved, and away-from-home channels are outperforming.
Fiscal Year 2023
Fiscal Year 2022
Fiscal Year 2021
Fiscal Year 2020
Fiscal Year 2019
Fiscal Year 2018
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2018 organic revenue grew 3.7%, accelerating in H2, while investment and productivity initiatives target sustainable top-line growth. 2019 guidance is 4% organic revenue growth and ~$5.50 core EPS, with high-single-digit core constant-currency EPS growth expected in 2020.
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Q3 organic revenue growth accelerated to 4.9%, while international results were strong and North America beverage profits faced cost and marketing pressure. FY guidance calls for at least 3% organic growth and $5.65 core EPS; SodaStream acquisition closing was expected by January 2019.
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Q2 organic revenue grew 2.6% to $16.1B, and core EPS rose 7% to $1.61. Full-year guidance remained intact, with $5.70 core EPS expected despite inflation, FX, and competitive pressures.
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Q1 revenue was $12.6B and core EPS was $0.96, with growth across most businesses and international markets. NAB's cola share losses drove increased marketing and a turnaround focus; FY 2018 guidance was unchanged.
Fiscal Year 2017
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FY 2017 delivered 2.3% organic revenue growth, 9% core constant-currency EPS growth and $7.3B in adjusted free cash flow. For 2018, guidance calls for at least 2.3% organic growth as tax reform, higher investment and beverage recovery shape performance.
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Q3 organic revenue grew 1.7%, and FY core EPS guidance rose to $5.23, while North American Beverages weakened. Strong snacks and international results, productivity savings and FX improvement supported the higher EPS outlook.
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Q2 organic revenue grew more than 3%, with core constant-currency operating profit up 7% and EPS up 13%. FY targets were reaffirmed, while FX, inflation, and challenging comparisons shape the second-half outlook.
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Q1 organic revenue grew 2% and core constant-currency EPS rose 7%, with developing markets leading growth. FY17 targets remain intact, though FX, inflation and near-term margin pressure remain key considerations.
Fiscal Year 2016
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2016 met or exceeded key goals, with 3.7% organic growth, 80 bps of core margin expansion, and 12% core constant-currency EPS growth excluding Venezuela. 2017 guidance anticipates FX and commodity headwinds, offset by productivity and SG&A-led margin gains.
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Q3 organic revenue grew more than 4%, with margin expansion and core constant-currency EPS growth of 7% (11% excluding Venezuela). FY core EPS guidance rose to $4.78, supported by strong YTD results and productivity gains.
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Q3 organic revenue grew over 4%, with core constant-currency EPS up 7% and up 11% excluding Venezuela. FY16 core EPS guidance rose to $4.78, supported by productivity and broad market growth.
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Q1 organic revenue grew 3.5%, with core constant-currency operating profit up 12% and EPS up 11%. FY guidance was reaffirmed amid macro uncertainty, FX pressure and anticipated raw-material inflation.
Fiscal Year 2015
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2015 organic revenue grew 5% and core constant-currency EPS rose 10%, with $9B returned to shareholders. 2016 guidance targets ~4% organic growth and ~$4.66 core EPS, despite a four-point FX drag.
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Q3 organic revenue rose 7.4%, with core constant-currency EPS up 14% and gross margin expanding 120 bps. The FY2015 core constant-currency EPS growth target increased to 9%, supported by productivity and strong shareholder returns.
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Q2 organic revenue rose 5.1% and core constant-currency EPS grew 11%, prompting an FY15 EPS-growth outlook increase to 8%. Productivity, innovation and disciplined capital returns remained priorities amid FX, commodity and geopolitical headwinds.
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Q1 organic revenue grew 4.4%, while core constant-currency EPS rose 16%. FY15 core growth guidance was maintained, but stronger-dollar translation headwinds increased; free cash flow and shareholder-return targets remained intact.
Fiscal Year 2014
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2014 targets were met or exceeded, with 4% organic revenue growth, 9% core constant-currency EPS growth and $8.3B free cash flow. 2015 guidance targets 7% core EPS growth before an expected ~7-point FX drag, alongside continued productivity and shareholder returns.
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Q3 organic revenue grew 3.1%, with core constant-currency EPS up 11% and margins expanding 45 bps. FY14 EPS growth guidance rose to 9%, supported by productivity and planned shareholder returns of $8.7 billion.
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Q2 organic revenue grew 3.6%, with adjusted core constant-currency EPS up 9% excluding prior-year Vietnam items. FY14 core constant-currency EPS growth guidance increased to 8%, supported by productivity and strong first-half execution.
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Q1 organic revenue grew 4%, core constant-currency EPS rose 10%, and margins improved. FY14 guidance remained unchanged amid FX, geopolitical and tax-related pressures; planned shareholder returns total $8.7B.
Fiscal Year 2013
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2013 goals were met or exceeded, with 4% organic revenue growth and 9% core constant-currency EPS growth. 2014 guidance calls for 7% EPS growth, while cash returns rise 35% and a new $5 billion productivity program begins in 2015.
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Q3 organic revenue grew 3.3%, with core constant-currency EPS up 5% and gross margin up 70 bps. FY13 guidance was unchanged, while AMEA volatility and FX remained key headwinds.
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Q2 organic revenue rose 4.2% and core constant-currency EPS grew 19%, with margins and cash flow improving. FY guidance was maintained as productivity and reinvestment supported growth amid FX, commodity, and market pressures.
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Q1 organic revenue grew 4.4%, core constant-currency EPS rose 13%, and core operating margin expanded 80 bps. Guidance remained intact, with productivity, emerging-market growth, and disciplined shareholder returns supporting the outlook amid macro, FX, and category risks.
Fiscal Year 2012
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Organic revenue grew 5% in 2012, while increased brand investment and productivity supported improved business momentum. 2013 guidance targets mid-single-digit organic revenue growth and 7% core constant-currency EPS growth amid FX and macroeconomic headwinds.
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Q3 core EPS was $1.20, with 5% organic revenue growth and results in line with expectations. FY12 core constant-currency EPS was still expected to decline 5%, as investment in brands and productivity continued.
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Organic revenue grew 5% and results met expectations, while core constant-currency EPS fell 4% in Q2. Full-year EPS guidance remained a 5% decline, with pricing, productivity and shareholder returns supporting the outlook amid commodity, FX and structural pressures.
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Q1 revenue rose 4% and price mix helped absorb commodity inflation, while core EPS was $0.69 and division operating profit fell 2%. FY core constant-currency EPS is expected to decline ~5%, with productivity, pricing and the Tingyi alliance central to the plan.