Form 8-K

8-K — PEPSICO INC

Accession: 0000077476-26-000050

Filed: 2026-10-08

Period: 2026-10-08

CIK: 0000077476

SIC: 2080 (BEVERAGES)

Item: Results of Operations and Financial Condition

Item: Financial Statements and Exhibits

Documents

8-K — pep-20261008.htm (Primary)

EX-99.1 (q320268-kxexhibit991.htm)

GRAPHIC (pepsico-logoxprimaryxhoriza.jpg)

XML — IDEA: XBRL DOCUMENT (R1.htm)

8-K

8-K (Primary)

Filename: pep-20261008.htm · Sequence: 1

pep-20261008

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 8, 2026

PepsiCo, Inc.

(Exact name of registrant as specified in its charter)

North Carolina 1-1183 13-1584302

(State or other jurisdiction

of incorporation) (Commission

File Number) (IRS Employer

Identification No.)

700 Anderson Hill Road, Purchase, New York 10577

(Address of principal executive offices and Zip Code)

Registrant’s telephone number, including area code: (914) 253-2000

N/A

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:

Title of each class Trading Symbols Name of each exchange on which registered

Common Stock, par value 1-2/3 cents per share PEP The Nasdaq Stock Market LLC

0.750% Senior Notes Due 2027 PEP27 The Nasdaq Stock Market LLC

0.875% Senior Notes Due 2028 PEP28 The Nasdaq Stock Market LLC

0.500% Senior Notes Due 2028 PEP28A The Nasdaq Stock Market LLC

Floating Rate Notes Due 2028 PEP28B The Nasdaq Stock Market LLC

3.200% Senior Notes Due 2029 PEP29 The Nasdaq Stock Market LLC

1.125% Senior Notes Due 2031 PEP31 The Nasdaq Stock Market LLC

0.400% Senior Notes Due 2032 PEP32 The Nasdaq Stock Market LLC

0.750% Senior Notes Due 2033 PEP33 The Nasdaq Stock Market LLC

3.550% Senior Notes Due 2034 PEP34 The Nasdaq Stock Market LLC

3.300% Senior Notes Due 2034 PEP34A The Nasdaq Stock Market LLC

3.450% Senior Notes Due 2037 PEP37 The Nasdaq Stock Market LLC

3.700% Senior Notes Due 2038 PEP38 The Nasdaq Stock Market LLC

0.875% Senior Notes Due 2039 PEP39 The Nasdaq Stock Market LLC

4.150% Senior Notes Due 2047 PEP47 The Nasdaq Stock Market LLC

1.050% Senior Notes Due 2050 PEP50 The Nasdaq Stock Market LLC

4.050% Senior Notes Due 2055 PEP55 The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02. Results of Operations and Financial Condition.

The information in this Item 2.02, including Exhibit 99.1 attached hereto, is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section and shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended, or the Exchange Act, except as otherwise expressly stated in such filing.

Attached as Exhibit 99.1 and incorporated by reference into this Item 2.02 is a copy of the press release issued by PepsiCo, Inc. (“PepsiCo”), dated October 8, 2026, reporting PepsiCo’s financial results for the 12 and 36 weeks ended September 5, 2026.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits

Exhibit No. Description

99.1

Press Release issued by PepsiCo, Inc., dated October 8, 2026.

104 The cover page from this Current Report on Form 8-K, formatted in Inline XBRL.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

PEPSICO, INC.

Date: October 7, 2026 By: /s/ David Flavell

Name: David Flavell

Title: Executive Vice President, General Counsel and Corporate Secretary

EX-99.1

Filename: q320268-kxexhibit991.htm · Sequence: 2

Document

Exhibit 99.1

PepsiCo Reports Third-Quarter 2026 Results

Third-Quarter and Year-to-Date Results1

•Net revenue increased 5.6% and 6.7%, respectively

•Organic revenue2 increased 3.1% and 2.7%, respectively

•Earnings per share (EPS) increased 17% and 47%, respectively

•Core2 EPS increased 2% and 5%, respectively

•Core constant currency2 EPS increased 1.5% and 2%, respectively

Guidance

•Company updates fiscal 2026 financial guidance2

PURCHASE, N.Y. - October 8, 2026 - PepsiCo, Inc. (NASDAQ: PEP) today reported results for third-quarter 2026.

“Our third-quarter results featured strong net revenue growth, an acceleration in organic revenue growth with organic volume growth across both global beverages and convenient foods. The results reflect the scale and resilience of the international business, the ongoing evolution of the global portfolio and an improved presence in underpenetrated channels and occasions,” said Chairman and CEO Ramon Laguarta.

Laguarta continued, “Looking ahead, we remain focused on building upon the strength of the International business while acting with urgency to sustainably improve our performance in North America through more investments in innovation, effective brand building, and sharper marketplace execution by channel. Additional structural cost reduction actions are being identified and will be implemented in the coming months to help fund investments that aim to accelerate organic revenue growth and mitigate the impacts of rising input cost inflation.”

Third-Quarter Year-to-Date

($ in millions, except EPS) Q3 2026 Q3 2025 Change Q3 2026 Q3 2025 Change

Net revenue $25,274 $23,937 5.6% $68,898 $64,582 6.7%

Organic revenue performance 3.1% 2.7%

Operating profit $4,260 $3,569 19% $11,496 $7,941 45%

Operating margin 16.9% 14.9% 195 bps 16.7% 12.3% 440 bps

Core operating profit $4,277 $4,137 3% $11,394 $10,837 5%

Core operating margin 16.9% 17.3% (35) bps 16.5% 16.8% (25) bps

EPS $2.23 $1.90 17% $6.10 $4.15 47%

Core EPS $2.34 $2.29 2% $6.15 $5.88 5%

Core constant currency EPS 1.5% 2%

1 Versus the prior year.

2 Please refer to the reconciliation of generally accepted accounting principles (GAAP) and non-GAAP information in the attached exhibits and to the Glossary for the definitions of non-GAAP financial measures, including “Organic revenue performance,” “Core” and “Constant currency,” and to “Guidance and Outlook” for additional information regarding PepsiCo’s full-year 2026 financial guidance. PepsiCo provides guidance on a non-GAAP basis as we cannot predict certain elements which are included in reported GAAP results, including the impact of foreign exchange and commodity mark-to-market net impacts. Please refer to PepsiCo’s Quarterly Report on Form 10-Q for the 12 and 36 weeks ended September 5, 2026 (Q3 2026 Form 10-Q) filed with the Securities and Exchange Commission (SEC) for additional information regarding PepsiCo’s financial results.

Third-Quarter Results Discussion

•Net revenue increased 5.6% due to 3.1% organic revenue growth, a 1.7-percentage-point net benefit from acquisitions and divestitures and a 0.7-percentage-point benefit from foreign exchange translation. Organic revenue growth reflects the benefits associated with effective net pricing and a contribution from organic volume growth.

◦In North America, convenient foods net revenue trends improved sequentially, reflecting savory snacks volume growth and volume market share improvement, offset by lower effective net pricing. The beverages business delivered 5 percent net revenue growth, primarily reflecting the benefits of acquisitions made in 2025.

◦The international businesses performed well with each segment delivering strong net revenue growth - aided by organic volume growth within Asia Pacific Foods, International Beverages Franchise and Latin America Foods.

•Operating profit increased 19% and operating margin expanded 195 basis points, primarily reflecting a favorable net impact of acquisition and divestiture-related charges/credits and a favorable impact of net mark-to-market gains on commodity derivatives. Core operating profit increased 3%, with core operating margin contracting 35 basis points. The core operating profit performance reflects productivity savings, effective net pricing and a 4-percentage-point favorable impact of tariff refunds. These impacts were partially offset by certain operating cost increases and higher advertising and marketing expenses.

•EPS increased 17% and core EPS increased 2%, primarily driven by operating profit growth.

Year-to-Date Results Discussion

•Net revenue increased 6.7% due to 2.7% organic revenue growth, a 2.0-percentage-point benefit from foreign exchange translation and a 2.0-percentage-point net benefit from acquisitions and divestitures. Organic revenue growth reflects the benefits associated with effective net pricing and a contribution from organic volume growth.

◦In North America convenient foods, organic volume and volume market share increased aided by innovation and affordability initiatives. Convenient foods net revenue reflects organic volume growth and the benefits of an acquisition, offset by lower effective net pricing. The beverages business delivered 7 percent net revenue growth, primarily reflecting the benefits of acquisitions made in 2025 with organic revenue growth increasing 1 percent.

•Operating profit increased 45% and operating margin expanded 440 basis points, primarily reflecting prior-year impairment charges related to the Rockstar and Be & Cheery brands and a favorable net impact of acquisition and divestiture-related charges/credits. Core operating profit increased 5%, with core operating margin contracting 25 basis points. The core operating profit performance was primarily driven by productivity savings and effective net pricing, partially offset by certain operating cost increases.

•EPS increased 47% and core EPS increased 5%, primarily driven by operating profit growth.

Summary Third-Quarter 2026 Performance

Revenue

Volume(a)

GAAP Reported

% Change Percentage Point Impact Organic

% Change % Change

Foreign Exchange Translation Acquisitions and Divestitures Convenient Foods Beverages

PepsiCo Foods North America (PFNA) — — — — —

PepsiCo Beverages North America (PBNA) 5 — (6) — (2)

International Beverages Franchise (IB Franchise) 8 (1) — 7 5

Europe, Middle East and Africa (EMEA) 8 1 — 9 (1) 4

Latin America Foods (LatAm Foods) 14 (8) — 6 3

Asia Pacific Foods 10 (1) — 9 11

Total 6 (1) (2) 3 1 3

Operating Profit and EPS

GAAP Reported % Change Percentage Point Impact Core Constant Currency

% Change

Items Affecting Comparability Foreign Exchange Translation

PFNA (13) 1 — (12)

PBNA 45 (41) — 4

IB Franchise 29 (19) (1.5) 9

EMEA 25 (8) 2 19

LatAm Foods 47 (27) (9) 10

Asia Pacific Foods 15 (1) (2) 12

Corporate unallocated expenses (10) 15 — 5

Total 19 (16) (1) 2.5

EPS 17 (15) (1) 1.5

(a)Excludes the impact of acquisitions and divestitures. In certain instances, the volume change shown here differs from the impact of organic volume change on net revenue performance disclosed in the Organic Revenue Performance table on page A-7, due to the impacts of product mix, nonconsolidated joint venture volume, and, for our franchise beverage businesses, temporary timing differences between bottler case sales (BCS) and concentrate shipments and equivalents (CSE). We report net revenue from our franchise beverage businesses based on CSE. The volume sold by our nonconsolidated joint ventures has no direct impact on our net revenue.

Note: Amounts may not sum due to rounding.

Organic revenue and core constant currency results are non-GAAP financial measures. Please refer to the reconciliation of GAAP and non-GAAP information in the attached exhibits and to the Glossary for definitions of “Organic revenue performance,” “Core” and “Constant currency.”

Summary Year-to-Date 2026 Performance

Revenue

Volume(a)

GAAP Reported

% Change Percentage Point Impact Organic

% Change % Change

Foreign Exchange Translation Acquisitions and Divestitures Convenient Foods Beverages

PFNA — — — — 1

PBNA 7 — (6) 1 (3)

IB Franchise 10 (2) — 8 4

EMEA 11 (3) — 7 3 2

LatAm Foods 15 (11) — 4.5 —

Asia Pacific Foods 11 (3) — 9 10

Total 7 (2) (2) 3 3 2

Operating Profit and EPS

GAAP Reported

% Change Percentage Point Impact Core Constant Currency

% Change

Items Affecting Comparability Foreign Exchange Translation

PFNA (8) — — (8)

PBNA 416 (413) — 3

IB Franchise 22 (7) (2) 13

EMEA 47 (29) (2) 17

LatAm Foods 28 (10) (12) 6

Asia Pacific Foods 62 (32) (4) 25

Corporate unallocated expenses (13) 16 — 3

Total 45 (40) (2) 3

EPS 47 (42) (2.5) 2

(a)Excludes the impact of acquisitions and divestitures. In certain instances, the volume change shown here differs from the impact of organic volume change on net revenue performance disclosed in the Organic Revenue Performance table on page A-7, due to the impacts of product mix, nonconsolidated joint venture volume, and, for our franchise beverage businesses, temporary timing differences between BCS and CSE. We report net revenue from our franchise beverage businesses based on CSE. The volume sold by our nonconsolidated joint ventures has no direct impact on our net revenue.

Note: Amounts may not sum due to rounding.

Guidance and Outlook

The Company provides guidance on a non-GAAP basis as we cannot predict certain elements which are included in reported GAAP results, including the impact of foreign exchange translation and commodity mark-to-market net impacts. PepsiCo’s current and previous fiscal 2026 outlook is summarized below.

Fiscal 2026 Guidance (changes are bolded & italicized below)

Current Previous

Organic Revenue Approximately +3% +2% to +4%

Foreign Exchange Translation (a)

Approximately +1.5% to net revenue and core EPS growth Approximately +1% to net revenue and core EPS growth

Acquisitions, net of Divestitures (b)

Approximately +1.5% to net revenue growth Approximately +1% to net revenue growth

Net Revenue Approximately +6% +4% to +6%

Core Annual Effective Tax Rate (c)

Approximately 21% Approximately 22%

Core Constant Currency EPS +1% to +2% Low-end of +4% to +6%

Core EPS +2.5% to +3.5% Low-end of +5% to +7%

Capital Spending Below 5% of net revenue Below 5% of net revenue

Free Cash Flow Conversion Ratio At least 80 percent At least 80 percent

Cash Returns to Shareholders (d)

$8.9 billion $8.9 billion

(a)Assumptions are based on current foreign exchange rates, as we are unable to predict the impact of exchange translation rates.

(b)Refers to acquisitions, net of divestitures, that occurred in 2025.

(c)Includes the anticipated impact of global minimum tax regulations.

(d)Comprised of dividends of $7.9 billion and share repurchases of $1.0 billion.

Prepared Management Remarks and Live Question and Answer Webcast

At approximately 6:00 a.m. (Eastern time) on October 8, 2026, the Company will post prepared management remarks (in pdf format) regarding its third quarter results and business update, including its outlook for 2026, at https://www.pepsico.com/investors. At 8:15 a.m. (Eastern time) on October 8, 2026, the Company will host a live question and answer session with investors and financial analysts. Further details will be accessible on the Company’s website at https://www.pepsico.com/investors.

Contacts: Investor Relations Communications

investor@pepsico.com pepsicomediarelations@pepsico.com

PepsiCo, Inc. and Subsidiaries

Condensed Consolidated Statement of Income

(in millions, except per share amounts, unaudited)

12 Weeks Ended 36 Weeks Ended

9/5/2026 9/6/2025 9/5/2026 9/6/2025

Net Revenue $ 25,274 $ 23,937 $ 68,898 $ 64,582

Cost of sales 11,520 11,113 31,302 29,343

Gross profit 13,754 12,824 37,596 35,239

Selling, general and administrative expenses 9,494 9,122 26,100 25,305

Impairment of intangible assets (a)

— 133 — 1,993

Operating Profit 4,260 3,569 11,496 7,941

Other pension and retiree medical benefits (expense)/income (114) 26 3 91

Net interest expense and other (242) (264) (773) (788)

Income before income taxes 3,904 3,331 10,726 7,244

Provision for income taxes 834 713 2,314 1,504

Net income 3,070 2,618 8,412 5,740

Less: Net income attributable to noncontrolling interests 22 15 56 40

Net Income Attributable to PepsiCo $ 3,048 $ 2,603 $ 8,356 $ 5,700

Diluted

Net income attributable to PepsiCo per common share $ 2.23 $ 1.90 $ 6.10 $ 4.15

Weighted-average common shares outstanding 1,367 1,372 1,369 1,373

(a)For the 12 and 36 weeks ended September 6, 2025, we recognized charges primarily related to the impairment of our Rockstar brand.

A - 1

PepsiCo, Inc. and Subsidiaries

Condensed Consolidated Statement of Cash Flows

(in millions, unaudited)

36 Weeks Ended

9/5/2026 9/6/2025

Operating Activities

Net income $ 8,412 $ 5,740

Depreciation and amortization 2,531 2,315

Impairment and other charges — 1,960

Operating lease right-of-use asset amortization 531 489

Share-based compensation expense 240 207

Restructuring and impairment charges 367 567

Cash payments for restructuring charges (373) (554)

Acquisition and divestiture-related charges/credits (254) 308

Cash payments for acquisition and divestiture-related charges (24) (80)

Pension and retiree medical plan expenses 227 164

Pension and retiree medical plan contributions (355) (400)

Deferred income taxes and other tax charges/credits 663 30

Tax payments related to the Tax Cuts and Jobs Act (965) (772)

Change in assets and liabilities:

Accounts and notes receivable (2,124) (1,747)

Inventories (588) (449)

Prepaid expenses and other current assets 27 (223)

Accounts payable and other current liabilities (358) (1,647)

Income taxes payable 415 6

Other, net (422) (446)

Net Cash Provided by Operating Activities 7,950 5,468

Investing Activities

Capital spending (2,182) (2,499)

Sales of property, plant and equipment 89 272

Acquisitions, net of cash acquired, investments in noncontrolled affiliates and purchases of intangible and other assets (148) (3,176)

Short-term investments, by original maturity:

More than three months - purchases (105) (190)

More than three months - maturities 17 425

More than three months - sales 14 —

Three months or less, net (5) 43

Other investing, net (27) (112)

Net Cash Used for Investing Activities (2,347) (5,237)

(Continued on following page)

A - 2

PepsiCo, Inc. and Subsidiaries

Condensed Consolidated Statement of Cash Flows (continued)

(in millions, unaudited)

36 Weeks Ended

9/5/2026 9/6/2025

Financing Activities

Proceeds from issuances of long-term debt $ 2,978 $ 8,179

Payments of long-term debt (2,328) (3,245)

Short-term borrowings, by original maturity:

More than three months - proceeds 4,562 5,528

More than three months - payments (3,817) (5,417)

Three months or less, net 1,365 445

Cash dividends paid (5,935) (5,692)

Share repurchases (739) (752)

Proceeds from exercises of stock options 107 76

Withholding tax payments on restricted stock units and performance stock units converted (96) (112)

Other financing (1) (18)

Net Cash Used for Financing Activities (3,904) (1,008)

Effect of exchange rate changes on cash and cash equivalents and restricted cash (175) 395

Net Increase/(Decrease) in Cash and Cash Equivalents and Restricted Cash 1,524 (382)

Cash and Cash Equivalents and Restricted Cash, Beginning of Year 9,204 8,553

Cash and Cash Equivalents and Restricted Cash, End of Period $ 10,728 $ 8,171

Supplemental Non-Cash Activity

Right-of-use assets obtained in exchange for lease obligations $ 625 $ 542

Investment obtained for certain assets $ — $ 554

A - 3

PepsiCo, Inc. and Subsidiaries

Condensed Consolidated Balance Sheet

(in millions, except per share amounts)

(unaudited)

9/5/2026 12/27/2025

ASSETS

Current Assets

Cash and cash equivalents $ 10,675 $ 9,159

Short-term investments 488 371

Accounts and notes receivable, net 13,623 11,506

Inventories:

Raw materials and packaging 2,792 2,581

Work-in-process 175 143

Finished goods 3,467 3,121

6,434 5,845

Prepaid expenses and other current assets 1,339 1,068

Total Current Assets 32,559 27,949

Property, Plant and Equipment, net 29,731 29,905

Amortizable Intangible Assets, net 1,165 1,219

Goodwill 18,884 18,916

Other Indefinite-Lived Intangible Assets 13,977 13,847

Investments in Noncontrolled Affiliates 2,215 2,038

Deferred Income Taxes 4,328 4,541

Other Assets 9,117 8,984

Total Assets $ 111,976 $ 107,399

LIABILITIES AND EQUITY

Current Liabilities

Short-term debt obligations $ 9,223 $ 6,861

Accounts payable and other current liabilities 25,306 25,903

Total Current Liabilities 34,529 32,764

Long-Term Debt Obligations 42,658 42,321

Deferred Income Taxes 4,107 3,802

Other Liabilities 8,195 7,965

Total Liabilities 89,489 86,852

Commitments and contingencies

PepsiCo Common Shareholders’ Equity

Common stock, par value 12/3¢ per share (authorized 3,600 shares; issued, net of repurchased common stock at par value: 1,364 and 1,367 shares, respectively)

23 23

Capital in excess of par value 4,522 4,451

Retained earnings 75,140 72,788

Accumulated other comprehensive loss (14,987) (15,024)

Repurchased common stock, in excess of par value (503 and 500 shares, respectively)

(42,406) (41,832)

Total PepsiCo Common Shareholders’ Equity 22,292 20,406

Noncontrolling interests 195 141

Total Equity 22,487 20,547

Total Liabilities and Equity $ 111,976 $ 107,399

A - 4

Non-GAAP Measures

In discussing financial results and guidance, the Company refers to the following measures which are not in accordance with U.S. Generally Accepted Accounting Principles (GAAP): organic revenue performance, core results, core constant currency results, free cash flow and free cash flow conversion. We use non-GAAP financial measures internally to make operating and strategic decisions, including the preparation of our annual operating plan, evaluation of our overall business performance and as a factor in determining compensation for certain employees. We believe presenting non-GAAP financial measures provides additional information to facilitate comparison of our historical operating results and trends in our underlying operating results and provides additional transparency on how we evaluate our business. We also believe presenting these measures allows investors to view our performance using the same measures that we use in evaluating our financial and business performance and trends.

We consider quantitative and qualitative factors in assessing whether to adjust for the impact of items that may be significant or that could affect an understanding of our ongoing financial and business performance or trends. Examples of items for which we may make adjustments include: amounts related to mark-to-market gains or losses (non-cash); charges related to restructuring plans; charges and credits associated with acquisitions and divestitures; gains associated with divestitures; asset impairment charges (non-cash); product recall-related impact; pension and retiree medical-related amounts, including all settlement and curtailment gains and losses; charges or adjustments related to the enactment of new laws, rules or regulations, such as tax law changes; amounts related to the resolution of tax positions; tax benefits related to reorganizations of our operations; and debt redemptions, cash tender or exchange offers. See below for a description of adjustments to our GAAP financial measures included herein.

Non-GAAP information should be considered as supplemental in nature and is not meant to be considered in isolation or as a substitute for the related financial information prepared in accordance with GAAP. In addition, our non-GAAP financial measures may not be the same as or comparable to similar non-GAAP measures presented by other companies.

Glossary

We use the following definitions when referring to our non-GAAP financial measures:

Acquisitions and divestitures: mergers and acquisitions activity, as well as divestitures and other structural changes, including changes in ownership or control in consolidated subsidiaries and nonconsolidated equity investees.

Bottler case sales (BCS): Measure of physical beverage volume shipped to retailers and independent distributors from both PepsiCo and our independent bottlers.

Concentrate shipments and equivalents (CSE): Measure of our physical beverage volume shipments to independent bottlers.

Constant currency: Financial results assuming constant foreign currency exchange rates used for translation based on the rates in effect for the comparable prior-year period. In order to compute our constant currency results, we multiply or divide, as appropriate, our current-year U.S. dollar results by the current-year average foreign exchange rates and then multiply or divide, as appropriate, those amounts by the prior-year average foreign exchange rates. We also apply the constant currency calculation for our subsidiaries operating in highly inflationary economies.

Core: Core results are non-GAAP financial measures which exclude certain items from our financial results. For further information regarding these excluded items, refer to “Items Affecting Comparability” in “Item 2 – Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Q3 2026 Form 10-Q and in “Item 7 – Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our annual report on Form 10-K for the fiscal year ended December 27, 2025. For the periods presented, core results exclude the following items:

Mark-to-market net impact

Mark-to-market net gains and losses on commodity derivatives in corporate unallocated expenses. These gains and losses are subsequently reflected in segment results when the segments recognize the cost of the underlying commodity in operating profit.

Restructuring and impairment charges

Expenses related to the multi-year productivity plan publicly announced in 2019, which was expanded and extended through the end of 2030 to take advantage of additional opportunities within the initiatives of the plan.

Acquisition and divestiture-related charges/credits

Acquisition and divestiture-related charges/credits include merger and integration charges, transaction expenses, such as consulting, advisory and other professional fees, as well as fair value adjustments to contingent consideration and to the acquired inventory included in the acquisition-date balance sheets. Merger and integration charges include distribution agreement termination fees, impairment of certain acquisition-related intangibles, employee-related costs, closing costs and other integration costs.

A - 5

Impairment and other charges

We recognized impairment charges primarily as a result of our quantitative assessments of certain of our indefinite-lived intangible assets, related to the Rockstar and Be & Cheery brands.

Indirect and income tax impact

We recognized additional expenses related to an indirect and income tax audit settlement in our LatAm Foods segment.

Pension and retiree medical-related impact

Pension and retiree medical-related impact includes settlement charges related to lump sum distributions exceeding the total of annual service and interest costs, as well as net curtailment losses.

Effective net pricing: Reflects the year-over-year impact of discrete pricing actions, sales incentive activities and mix resulting from selling varying products in different package sizes and in different countries.

Free cash flow: Net cash from operating activities less capital spending, plus sales of property, plant and equipment. Since net capital spending (capital spending less cash proceeds from sales of property, plant and equipment) is essential to our product innovation initiatives and maintaining our operational capabilities, we believe that it is a recurring and necessary use of cash. As such, we believe investors should also consider net capital spending when evaluating our cash from operating activities. Free cash flow is used by us primarily for acquisitions and financing activities, including debt repayments, dividends and share repurchases. Free cash flow is not a measure of cash available for discretionary expenditures since we have certain non-discretionary obligations such as debt service that are not deducted from the measure.

Free cash flow conversion ratio: Free cash flow divided by core net income attributable to PepsiCo.

Organic revenue performance: A measure that adjusts for the impacts of foreign exchange translation (on a constant currency basis, as defined above), acquisitions and divestitures, and every five or six years, the impact of an additional week of results. We also apply the constant currency calculation for our subsidiaries operating in highly inflationary economies. We believe organic revenue performance provides useful information in evaluating the results of our business because it adjusts for items that we believe are not indicative of ongoing performance or that we believe impact comparability with the prior year.

2026 guidance

Our 2026 organic revenue performance guidance adjusts for the impacts of foreign exchange translation (on a constant currency basis, as defined above) and acquisitions and divestitures. Our 2026 core effective tax rate guidance, our 2026 core constant currency EPS growth guidance and our projected 2026 core net income attributable to PepsiCo (a component of free cash flow conversion ratio) exclude the mark-to-market net impact included in corporate unallocated expenses, restructuring and impairment charges and other items noted above. Our 2026 core constant currency EPS growth guidance also excludes the impact of foreign exchange translation. We are unable to reconcile our full year projected 2026 organic revenue growth to our full year projected 2026 reported net revenue growth because we are unable to predict the 2026 impact of foreign exchange due to the unpredictability of future changes in foreign exchange rates and because we are unable to predict the occurrence or impact of any acquisitions and divestitures. We are also not able to reconcile our full year projected 2026 core effective tax rate to our full year projected 2026 reported effective tax rate, our full year projected 2026 core constant currency EPS growth to our full year projected 2026 reported EPS growth and our full year projected 2026 core net income attributable to PepsiCo (a component of free cash flow conversion ratio) to our full year projected 2026 reported net income, because we are unable to predict the 2026 impact of foreign exchange or the mark-to-market net impact on commodity derivatives due to the unpredictability of future changes in foreign exchange rates and commodity prices. Therefore, we are unable to provide a reconciliation of these measures, without unreasonable effort.

A - 6

PepsiCo, Inc. and Subsidiaries

Reconciliation of GAAP and Non-GAAP Information

Organic Revenue Performance

12 and 36 Weeks Ended September 5, 2026

(dollars in millions, unaudited)

12 Weeks Ended 9/5/2026

PFNA PBNA IB Franchise EMEA LatAm Foods Asia Pacific Foods Total

Reported Net Revenue, GAAP measure $ 6,504 $ 7,706 $ 1,401 $ 5,413 $ 3,021 $ 1,229 $ 25,274

Impact of foreign exchange translation (a)

10 11 (14) 42 (214) (13) (178)

Impact of acquisitions and structural changes — (428) — — — — (428)

Organic Revenue, non-GAAP measure (b)

$ 6,514 $ 7,289 $ 1,387 $ 5,455 $ 2,807 $ 1,216 $ 24,668

Prior Year Reported Net Revenue, GAAP measure $ 6,526 $ 7,327 $ 1,291 $ 5,022 $ 2,656 $ 1,115 $ 23,937

Impact of divestitures — (15) — — — — (15)

Prior Year Organic Revenue, non-GAAP measure (b)

$ 6,526 $ 7,312 $ 1,291 $ 5,022 $ 2,656 $ 1,115 $ 23,922

Reported Net Revenue % Change, GAAP measure — 5 8 8 14 10 6

Impact of foreign exchange translation — — (1) 1 (8) (1) (1)

Impact of acquisitions and divestitures — (6) — — — — (2)

Organic Revenue % Change, non-GAAP measure (c)

— — 7 9 6 9 3

Impact on % Change of:

Organic volume change (d)

0.5 (3) 5.5 1 2.5 11 0.5

Effective net pricing (1) 3 2 7 3 (2) 3

36 Weeks Ended 9/5/2026

PFNA PBNA IB Franchise EMEA LatAm Foods Asia Pacific Foods Total

Reported Net Revenue, GAAP measure $ 19,204 $ 21,340 $ 3,748 $ 13,219 $ 7,895 $ 3,492 $ 68,898

Impact of foreign exchange translation (a)

(13) (11) (71) (390) (721) (83) (1,289)

Impact of acquisitions and structural changes (54) (1,245) — — — — (1,299)

Organic Revenue, non-GAAP measure (b)

$ 19,137 $ 20,084 $ 3,677 $ 12,829 $ 7,174 $ 3,409 $ 66,310

Prior Year Reported Net Revenue, GAAP measure $ 19,215 $ 19,999 $ 3,418 $ 11,946 $ 6,865 $ 3,139 $ 64,582

Impact of divestitures — (37) — — — — (37)

Prior Year Organic Revenue, non-GAAP measure (b)

$ 19,215 $ 19,962 $ 3,418 $ 11,946 $ 6,865 $ 3,139 $ 64,545

Reported Net Revenue % Change, GAAP measure — 7 10 11 15 11 7

Impact of foreign exchange translation — — (2) (3) (11) (3) (2)

Impact of acquisitions and divestitures — (6) — — — — (2)

Organic Revenue % Change, non-GAAP measure (c)

— 1 8 7 4.5 9 3

Impact on % Change of:

Organic volume change (d)

1 (3) 4 3 — 10 0.5

Effective net pricing (1) 4 4 4 4 (2) 2

(a)Represents the adjustment needed to reflect translation of revenue using prior-year period foreign currency exchange rates.

(b)Represents underlying amount, not in accordance with GAAP, used in the calculation of Organic Revenue Performance, which is a financial measure that is not in accordance with GAAP. See pages A-5 through A-6 for further discussion.

(c)A financial measure that is not in accordance with GAAP. See pages A-5 through A-6 for further discussion.

(d)Excludes the impact of acquisitions and divestitures. In certain instances, the impact of organic volume change on net revenue performance differs from the unit volume change disclosed in the Summary Third-Quarter 2026 Performance table and Summary Year-to-Date 2026 Performance table on pages 3 and 4 respectively, due to the impacts of product mix, nonconsolidated joint venture volume, and, for our franchise beverage businesses, temporary timing differences between BCS and CSE. We report net revenue from our franchise beverage businesses based on CSE. The volume sold by our nonconsolidated joint ventures has no direct impact on our net revenue.

Note – Amounts may not sum due to rounding.

A - 7

PepsiCo, Inc. and Subsidiaries

Reconciliation of GAAP and Non-GAAP Information (continued)

Certain Line Items by Segment

12 Weeks Ended September 5, 2026

(dollars in millions, unaudited)

PFNA PBNA IB Franchise EMEA LatAm Foods Asia Pacific Foods Corporate Unallocated Expenses Total

Reported Cost of Sales, GAAP measure $ 2,578 $ 3,540 $ 409 $ 3,044 $ 1,233 $ 731 $ (15) $ 11,520

Mark-to-market net impact — — — — — — 15 15

Restructuring and impairment charges (2) (5) — (3) 1 — — (9)

Core Cost of Sales, non-GAAP measure (a)

$ 2,576 $ 3,535 $ 409 $ 3,041 $ 1,234 $ 731 $ — $ 11,526

Gross Margin

Reported Gross Profit, GAAP measure $ 3,926 $ 4,166 $ 992 $ 2,369 $ 1,788 $ 498 $ 15 $ 13,754 54.4 %

Mark-to-market net impact — — — — — — (15) (15) (0.1)

Restructuring and impairment charges 2 5 — 3 (1) — — 9 —

Core Gross Profit, non-GAAP measure (a)

$ 3,928 $ 4,171 $ 992 $ 2,372 $ 1,787 $ 498 $ — $ 13,748 54.4 %

Reported Selling, General and Administrative Expenses, GAAP measure $ 2,593 $ 3,110 $ 430 $ 1,472 $ 1,164 $ 324 $ 401 $ 9,494

Mark-to-market net impact — — — — — — 64 64

Restructuring and impairment charges (46) (48) (2) (40) (3) (5) (39) (183)

Acquisition and divestiture-related charges/credits (1) 97 — — — — — 96

Core Selling, General and Administrative Expenses, non-GAAP measure (a)

$ 2,546 $ 3,159 $ 428 $ 1,432 $ 1,161 $ 319 $ 426 $ 9,471

Operating Margin

Reported Operating Profit, GAAP measure $ 1,333 $ 1,056 $ 562 $ 897 $ 624 $ 174 $ (386) $ 4,260 16.9 %

Mark-to-market net impact — — — — — — (79) (79) (0.3)

Restructuring and impairment charges 48 53 2 43 2 5 39 192 0.8

Acquisition and divestiture-related charges/credits 1 (97) — — — — — (96) (0.4)

Core Operating Profit, non-GAAP measure (a)

1,382 1,012 564 940 626 179 (426) 4,277 16.9 %

Impact of foreign exchange translation (b)

2 3 (8) 18 (49) (4) — (38)

Core Constant Currency Operating Profit, non-GAAP measure (a)

$ 1,384 $ 1,015 $ 556 $ 958 $ 577 $ 175 $ (426) $ 4,239

Reported Operating Profit % Change, GAAP measure (13) 45 29 25 47 15 (10) 19

Core Operating Profit % Change, non-GAAP measure (a)

(12) 4 10 16 20 14 5 3

Core Constant Currency Operating Profit % Change, non-GAAP measure (a)

(12) 4 9 19 10 12 5 2.5

(a)A financial measure that is not in accordance with GAAP. See pages A-5 through A-6 for further discussion.

(b)Represents the adjustment needed to reflect translation of operating profit using prior-year period foreign currency exchange rates.

Note – Amounts may not sum due to rounding.

A - 8

PepsiCo, Inc. and Subsidiaries

Reconciliation of GAAP and Non-GAAP Information (continued)

Certain Line Items by Segment (continued)

12 Weeks Ended September 6, 2025

(dollars in millions, unaudited)

PFNA PBNA IB Franchise EMEA LatAm Foods Asia Pacific Foods Corporate Unallocated Expenses Total

Reported Cost of Sales, GAAP measure $ 2,567 $ 3,452 $ 405 $ 2,871 $ 1,134 $ 666 $ 18 $ 11,113

Mark-to-market net impact — — — — — — (18) (18)

Restructuring and impairment charges (10) 1 — (7) — — — (16)

Acquisition and divestiture-related charges/credits — (46) — — — — — (46)

Core Cost of Sales, non-GAAP measure (a)

$ 2,557 $ 3,407 $ 405 $ 2,864 $ 1,134 $ 666 $ — $ 11,033

Gross Margin

Reported Gross Profit, GAAP measure $ 3,959 $ 3,875 $ 886 $ 2,151 $ 1,522 $ 449 $ (18) $ 12,824 53.6 %

Mark-to-market net impact — — — — — — 18 18 0.1

Restructuring and impairment charges 10 (1) — 7 — — — 16 0.1

Acquisition and divestiture-related charges/credits — 46 — — — — — 46 0.2

Core Gross Profit, non-GAAP measure (a)

$ 3,969 $ 3,920 $ 886 $ 2,158 $ 1,522 $ 449 $ — $ 12,904 53.9 %

Reported Selling, General and Administrative Expenses, GAAP measure $ 2,423 $ 3,086 $ 377 $ 1,431 $ 1,098 $ 298 $ 409 $ 9,122

Mark-to-market net impact — — — — — — (5) (5)

Restructuring and impairment charges (22) (20) (2) (62) (17) (5) 2 (126)

Acquisition and divestiture-related charges/credits (2) (123) — — — — — (125)

Impairment and other charges — 2 — (19) — — — (17)

Indirect and income tax impact — — — — (82) — — (82)

Core Selling, General and Administrative Expenses, non-GAAP measure (a)

$ 2,399 $ 2,945 $ 375 $ 1,350 $ 999 $ 293 $ 406 $ 8,767

Reported Impairment of Intangible Assets, GAAP measure $ — $ 60 $ 73 $ — $ — $ — $ — $ 133

Acquisition and divestiture-related charges/credits — (50) — — — — — (50)

Impairment and other charges — (10) (73) — — — — (83)

Core Impairment of Intangible Assets, non-GAAP measure (a)

$ — $ — $ — $ — $ — $ — $ — $ —

Operating Margin

Reported Operating Profit, GAAP measure $ 1,536 $ 729 $ 436 $ 720 $ 424 $ 151 $ (427) $ 3,569 14.9 %

Mark-to-market net impact — — — — — — 23 23 0.1

Restructuring and impairment charges 32 19 2 69 17 5 (2) 142 0.6

Acquisition and divestiture-related charges/credits 2 219 — — — — — 221 0.9

Impairment and other charges — 8 73 19 — — — 100 0.4

Indirect and income tax impact — — — — 82 — — 82 0.3

Core Operating Profit, non-GAAP measure (a)

$ 1,570 $ 975 $ 511 $ 808 $ 523 $ 156 $ (406) $ 4,137 17.3 %

(a)A financial measure that is not in accordance with GAAP. See pages A-5 through A-6 for further discussion.

Note – Amounts may not sum due to rounding.

A - 9

PepsiCo, Inc. and Subsidiaries

Reconciliation of GAAP and Non-GAAP Information (continued)

Certain Line Items by Segment (continued)

36 Weeks Ended September 5, 2026

(dollars in millions, unaudited)

PFNA PBNA IB Franchise EMEA LatAm Foods Asia Pacific Foods Corporate Unallocated Expenses Total

Reported Cost of Sales, GAAP measure $ 7,485 $ 9,951 $ 1,080 $ 7,565 $ 3,185 $ 2,078 $ (42) $ 31,302

Mark-to-market net impact — — — — — — 42 42

Restructuring and impairment charges (19) (4) — (12) 8 — — (27)

Core Cost of Sales, non-GAAP measure (a)

$ 7,466 $ 9,947 $ 1,080 $ 7,553 $ 3,193 $ 2,078 $ — $ 31,317

Gross Margin

Reported Gross Profit, GAAP measure $ 11,719 $ 11,389 $ 2,668 $ 5,654 $ 4,710 $ 1,414 $ 42 $ 37,596 54.6 %

Mark-to-market net impact — — — — — — (42) (42) (0.1)

Restructuring and impairment charges 19 4 — 12 (8) — — 27 —

Core Gross Profit, non-GAAP measure (a)

$ 11,738 $ 11,393 $ 2,668 $ 5,666 $ 4,702 $ 1,414 $ — $ 37,581 54.5 %

Reported Selling, General and Administrative Expenses, GAAP measure $ 7,615 $ 8,544 $ 1,148 $ 3,728 $ 3,042 $ 896 $ 1,127 $ 26,100

Mark-to-market net impact — — — — — — 179 179

Restructuring and impairment charges (130) (51) (10) (70) (17) (13) (55) (346)

Acquisition and divestiture-related charges/credits (3) 257 — — — — — 254

Core Selling, General and Administrative Expenses, non-GAAP measure (a)

$ 7,482 $ 8,750 $ 1,138 $ 3,658 $ 3,025 $ 883 $ 1,251 $ 26,187

Operating Margin

Reported Operating Profit, GAAP measure $ 4,104 $ 2,845 $ 1,520 $ 1,926 $ 1,668 $ 518 $ (1,085) $ 11,496 16.7 %

Mark-to-market net impact — — — — — — (221) (221) (0.3)

Restructuring and impairment charges 149 55 10 82 9 13 55 373 0.5

Acquisition and divestiture-related charges/credits 3 (257) — — — — — (254) (0.4)

Core Operating Profit, non-GAAP measure (a)

4,256 2,643 1,530 2,008 1,677 531 (1,251) 11,394 16.5 %

Impact of foreign exchange translation (b)

(3) — (30) (29) (175) (16) — (253)

Core Constant Currency Operating Profit, non-GAAP measure (a)

$ 4,253 $ 2,643 $ 1,500 $ 1,979 $ 1,502 $ 515 $ (1,251) $ 11,141

Reported Operating Profit % Change, GAAP measure (8) 416 22 47 28 62 (13) 45

Core Operating Profit % Change, non-GAAP measure (a)

(8) 3 15 18 18 29 3 5

Core Constant Currency Operating Profit % Change, non-GAAP measure (a)

(8) 3 13 17 6 25 3 3

(a)A financial measure that is not in accordance with GAAP. See pages A-5 through A-6 for further discussion.

(b)Represents the adjustment needed to reflect translation of operating profit using prior-year period foreign currency exchange rates.

Note – Amounts may not sum due to rounding.

A - 10

PepsiCo, Inc. and Subsidiaries

Reconciliation of GAAP and Non-GAAP Information (continued)

Certain Line Items by Segment (continued)

36 Weeks Ended September 6, 2025

(dollars in millions, unaudited)

PFNA PBNA IB Franchise EMEA LatAm Foods Asia Pacific Foods Corporate Unallocated Expenses Total

Reported Cost of Sales, GAAP measure $ 7,478 $ 9,108 $ 1,017 $ 6,920 $ 2,906 $ 1,905 $ 9 $ 29,343

Mark-to-market net impact — — — — — — (9) (9)

Restructuring and impairment charges (102) (6) — (11) — — — (119)

Acquisition and divestiture-related charges/credits — (46) — — — — — (46)

Core Cost of Sales, non-GAAP measure (a)

$ 7,376 $ 9,056 $ 1,017 $ 6,909 $ 2,906 $ 1,905 $ — $ 29,169

Gross Margin

Reported Gross Profit, GAAP measure $ 11,737 $ 10,891 $ 2,401 $ 5,026 $ 3,959 $ 1,234 $ (9) $ 35,239 54.6 %

Mark-to-market net impact — — — — — — 9 9 —

Restructuring and impairment charges 102 6 — 11 — — — 119 0.2

Acquisition and divestiture-related charges/credits — 46 — — — — — 46 0.1

Core Gross Profit, non-GAAP measure (a)

$ 11,839 $ 10,943 $ 2,401 $ 5,037 $ 3,959 $ 1,234 $ — $ 35,413 54.8 %

Reported Selling, General and Administrative Expenses, GAAP measure $ 7,274 $ 8,752 $ 1,080 $ 3,465 $ 2,658 $ 833 $ 1,243 $ 25,305

Mark-to-market net impact — — — — — — 17 17

Restructuring and impairment charges (45) (186) (7) (107) (36) (9) (45) (435)

Acquisition and divestiture-related charges/credits (23) (189) — — — — — (212)

Impairment and other charges — 2 — (19) — — — (17)

Indirect and income tax impact — — — — (82) — — (82)

Core Selling, General and Administrative Expenses, non-GAAP measure (a)

$ 7,206 $ 8,379 $ 1,073 $ 3,339 $ 2,540 $ 824 $ 1,215 $ 24,576

Reported Impairment of Intangible Assets, GAAP measure $ — $ 1,589 $ 73 $ 251 $ — $ 80 $ — $ 1,993

Acquisition and divestiture-related charges/credits — (50) — — — — — (50)

Impairment and other charges — (1,539) (73) (251) — (80) — (1,943)

Core Impairment of Intangible Assets, non-GAAP measure (a)

$ — $ — $ — $ — $ — $ — $ — $ —

Operating Margin

Reported Operating Profit, GAAP measure $ 4,463 $ 550 $ 1,248 $ 1,310 $ 1,301 $ 321 $ (1,252) $ 7,941 12.3 %

Mark-to-market net impact — — — — — — (8) (8) —

Restructuring and impairment charges 147 192 7 118 36 9 45 554 0.9

Acquisition and divestiture-related charges/credits 23 285 — — — — — 308 0.5

Impairment and other charges — 1,537 73 270 — 80 — 1,960 3.0

Indirect and income tax impact — — — — 82 — — 82 0.1

Core Operating Profit, non-GAAP measure (a)

$ 4,633 $ 2,564 $ 1,328 $ 1,698 $ 1,419 $ 410 $ (1,215) $ 10,837 16.8 %

(a)A financial measure that is not in accordance with GAAP. See pages A-5 through A-6 for further discussion.

Note – Amounts may not sum due to rounding.

A - 11

PepsiCo, Inc. and Subsidiaries

Reconciliation of GAAP and Non-GAAP Information (continued)

Certain Line Items

12 Weeks Ended September 5, 2026 and September 6, 2025

(dollars in millions, except per share amounts, unaudited)

12 Weeks Ended 9/5/2026

Other pension and retiree medical benefits (expense)/ income

Provision for income taxes(a)

Net income attributable to PepsiCo Net income attributable to PepsiCo per common share - diluted

Effective tax rate(b)

Reported, GAAP measure $ (114) $ 834 $ 3,048 $ 2.23 21.4 %

Items Affecting Comparability

Mark-to-market net impact — (19) (60) (0.04) (0.1)

Restructuring and impairment charges (7) 36 149 0.11 (0.1)

Acquisition and divestiture-related charges/credits — (23) (73) (0.05) (0.1)

Pension and retiree medical-related impact 179 40 139 0.10 —

Core, non-GAAP measure (c)

$ 58 $ 868 $ 3,203 $ 2.34 21.2 %

12 Weeks Ended 9/6/2025

Other pension and retiree medical benefits income

Provision for income taxes(a)

Net income attributable to PepsiCo Net income attributable to PepsiCo per common share - diluted

Effective tax rate(b)

Reported, GAAP measure $ 26 $ 713 $ 2,603 $ 1.90 21.4 %

Items Affecting Comparability

Mark-to-market net impact — 6 17 0.01 —

Restructuring and impairment charges (1) 25 116 0.08 (0.1)

Acquisition and divestiture-related charges/credits — 52 169 0.12 0.3

Impairment and other charges — 8 92 0.07 (0.4)

Indirect and income tax impact (d)

— (47) 129 0.09 (1.9)

Pension and retiree medical-related impact 13 2 11 0.01 —

Core, non-GAAP measure (c)

$ 38 $ 759 $ 3,137 $ 2.29 19.4 %

(a)Provision for income taxes is the expected tax charge/benefit on the underlying item based on the tax laws and income tax rates applicable to the underlying item in its corresponding tax jurisdiction.

(b)The impact of items affecting comparability on our effective tax rate represents the difference in the effective tax rate resulting from a higher or lower tax rate as applicable to the items affecting comparability.

(c)A financial measure that is not in accordance with GAAP. See pages A-5 through A-6 for further discussion.

(d)Provision for income taxes reflects the unfavorable impact of an income tax audit settlement in our LatAm Foods segment.

Note – Amounts may not sum due to rounding.

A - 12

PepsiCo, Inc. and Subsidiaries

Reconciliation of GAAP and Non-GAAP Information (continued)

Certain Line Items (continued)

36 Weeks Ended September 5, 2026 and September 6, 2025

(dollars in millions, except per share amounts, unaudited)

36 Weeks Ended 9/5/2026

Other pension and retiree medical benefits income

Provision for income taxes(a)

Net income attributable to PepsiCo Net income attributable to PepsiCo per common share - diluted

Effective tax rate(b)

Reported, GAAP measure $ 3 $ 2,314 $ 8,356 $ 6.10 21.6 %

Items Affecting Comparability

Mark-to-market net impact — (53) (168) (0.12) (0.1)

Restructuring and impairment charges (6) 77 290 0.21 —

Acquisition and divestiture-related charges/credits — (60) (194) (0.14) (0.1)

Pension and retiree medical-related impact 179 40 139 0.10 —

Core, non-GAAP measure (c)

$ 176 $ 2,318 $ 8,423 $ 6.15 21.5 %

36 Weeks Ended 9/6/2025

Other pension and retiree medical benefits income

Provision for income taxes(a)

Net income attributable to PepsiCo Net income attributable to PepsiCo per common share - diluted

Effective tax rate(b)

Reported, GAAP measure $ 91 $ 1,504 $ 5,700 $ 4.15 20.8 %

Items Affecting Comparability

Mark-to-market net impact — (2) (6) — —

Restructuring and impairment charges 13 100 467 0.34 (0.2)

Acquisition and divestiture-related charges/credits — 72 236 0.17 0.1

Impairment and other charges — 421 1,539 1.12 0.4

Indirect and income tax impact (d)

— (47) 129 0.09 (0.9)

Pension and retiree medical-related impact 12 2 10 0.01 —

Core, non-GAAP measure (c)

$ 116 $ 2,050 $ 8,075 $ 5.88 20.2 %

(c)A financial measure that is not in accordance with GAAP. See pages A-5 through A-6 for further discussion.

(d)Provision for income taxes reflects the unfavorable impact of an income tax audit settlement in our LatAm Foods segment.

Note – Amounts may not sum due to rounding.

A - 13

Cautionary Statement

Statements in this communication that are “forward-looking statements,” including our 2026 guidance and outlook are based on currently available information, operating plans and projections about future events and trends. Terminology such as “aim,” “anticipate,” “believe,” “drive,” “estimate,” “expect,” “expressed confidence,” “forecast,” “future,” “goal,” “guidance,” “intend,” “may,” “objective,” “outlook,” “plan,” “position,” “potential,” “project,” “seek,” “should,” “strategy,” “target,” “will” or similar statements or variations of such words and other similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such terms. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from those predicted in such forward-looking statements. Such risks and uncertainties include, but are not limited to: future demand for PepsiCo’s products; damage to PepsiCo’s reputation or brand image; product recalls or other issues or concerns with respect to product quality and safety; PepsiCo’s ability to compete effectively; PepsiCo’s ability to attract, develop and maintain a highly skilled workforce or effectively manage changes in our workforce; water scarcity; changes in the retail landscape or in sales to any key customer; disruption of PepsiCo’s manufacturing operations or supply chain, including increased commodity, packaging, transportation, labor and other input costs; political, social or geopolitical conditions in the markets where PepsiCo’s products are made, manufactured, distributed or sold; PepsiCo’s ability to grow its business in developing and emerging markets; changes in economic conditions in the countries in which PepsiCo operates; changes in tariffs and global trade relations; future cyber incidents and other disruptions to our information systems; failure to successfully complete or manage strategic transactions; PepsiCo’s reliance on third-party service providers and enterprise-wide systems; climate change or measures to address climate change and other sustainability matters; strikes or work stoppages; failure to realize benefits from PepsiCo’s productivity initiatives or organizational restructurings; deterioration in estimates and underlying assumptions regarding future performance of our business or investments that can result in impairment charges; fluctuations or other changes in exchange rates; any downgrade or potential downgrade of PepsiCo’s credit ratings; imposition or proposed imposition of new or increased taxes aimed at PepsiCo’s products; imposition of limitations on the marketing or sale of PepsiCo’s products; changes in laws and regulations related to the use or disposal of plastics or other packaging materials; failure to comply with personal data protection and privacy laws; increase in income tax rates, changes in income tax laws or disagreements with tax authorities; failure to adequately protect PepsiCo’s intellectual property rights or infringement on intellectual property rights of others; failure to comply with applicable laws and regulations; and potential liabilities and costs from litigation, claims, legal or regulatory proceedings, inquiries or investigations.

For additional information on these and other factors that could cause PepsiCo’s actual results to materially differ from those set forth herein, please see PepsiCo’s filings with the SEC, including its most recent annual report on Form 10-K and subsequent reports on Forms 10-Q and 8-K. Investors are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date they are made. We undertake no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.

A - 14

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Document and Entity Information

Oct. 08, 2026

Document and Entity Information [Line Items]

Document Type

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Document Period End Date

Oct. 08, 2026

Entity Registrant Name

PepsiCo, Inc.

Entity Incorporation, State or Country Code

Entity File Number

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Entity Tax Identification Number

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Entity Address, Address Line One

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Entity Address, City or Town

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City Area Code

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Document and Entity Information [Line Items]

Title of 12(b) Security

Common Stock, par value 1-2/3 cents per share

Trading Symbol

PEP

Security Exchange Name

NASDAQ

0.750% Senior Notes Due 2027

Document and Entity Information [Line Items]

Title of 12(b) Security

0.750% Senior Notes Due 2027

Trading Symbol

PEP27

Security Exchange Name

NASDAQ

0.875% Senior Notes Due 2028

Document and Entity Information [Line Items]

Title of 12(b) Security

0.875% Senior Notes Due 2028

Trading Symbol

PEP28

Security Exchange Name

NASDAQ

0.500% Senior Notes Due 2028

Document and Entity Information [Line Items]

Title of 12(b) Security

0.500% Senior Notes Due 2028

Trading Symbol

PEP28A

Security Exchange Name

NASDAQ

Floating Rate Notes Due 2028

Document and Entity Information [Line Items]

Title of 12(b) Security

Floating Rate Notes Due 2028

Trading Symbol

PEP28B

Security Exchange Name

NASDAQ

3.200% Senior Notes Due 2029

Document and Entity Information [Line Items]

Title of 12(b) Security

3.200% Senior Notes Due 2029

Trading Symbol

PEP29

Security Exchange Name

NASDAQ

1.125% Senior Notes Due 2031

Document and Entity Information [Line Items]

Title of 12(b) Security

1.125% Senior Notes Due 2031

Trading Symbol

PEP31

Security Exchange Name

NASDAQ

0.400% Senior Notes Due 2032

Document and Entity Information [Line Items]

Title of 12(b) Security

0.400% Senior Notes Due 2032

Trading Symbol

PEP32

Security Exchange Name

NASDAQ

0.750% Senior Notes Due 2033

Document and Entity Information [Line Items]

Title of 12(b) Security

0.750% Senior Notes Due 2033

Trading Symbol

PEP33

Security Exchange Name

NASDAQ

3.550% Senior Notes Due 2034

Document and Entity Information [Line Items]

Title of 12(b) Security

3.550% Senior Notes Due 2034

Trading Symbol

PEP34

Security Exchange Name

NASDAQ

3.300% Senior Notes Due 2034

Document and Entity Information [Line Items]

Title of 12(b) Security

3.300% Senior Notes Due 2034

Trading Symbol

PEP34A

Security Exchange Name

NASDAQ

3.450% Senior Notes Due 2037

Document and Entity Information [Line Items]

Title of 12(b) Security

3.450% Senior Notes Due 2037

Trading Symbol

PEP37

Security Exchange Name

NASDAQ

3.700% Senior Notes Due 2038

Document and Entity Information [Line Items]

Title of 12(b) Security

3.700% Senior Notes Due 2038

Trading Symbol

PEP38

Security Exchange Name

NASDAQ

0.875% Senior Notes Due 2039

Document and Entity Information [Line Items]

Title of 12(b) Security

0.875% Senior Notes Due 2039

Trading Symbol

PEP39

Security Exchange Name

NASDAQ

4.150% Senior Notes Due 2047

Document and Entity Information [Line Items]

Title of 12(b) Security

4.150% Senior Notes Due 2047

Trading Symbol

PEP47

Security Exchange Name

NASDAQ

1.050% Senior Notes Due 2050

Document and Entity Information [Line Items]

Title of 12(b) Security

1.050% Senior Notes Due 2050

Trading Symbol

PEP50

Security Exchange Name

NASDAQ

4.050% Senior Notes Due 2055

Document and Entity Information [Line Items]

Title of 12(b) Security

4.050% Senior Notes Due 2055

Trading Symbol

PEP55

Security Exchange Name

NASDAQ

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