v3.26.1
Basis of Presentation and Our Divisions
 3 Months Ended
Mar. 21, 2026
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Presentation and Other Divisions Basis of Presentation and Our Segments
Basis of Presentation
When used in this report, the terms “we,” “us,” “our,” “PepsiCo” and the “Company” mean PepsiCo, Inc. and its consolidated subsidiaries, collectively.
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP) for interim financial information and with the rules and regulations for reporting the Quarterly Report on Form 10-Q (Form 10-Q). Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. We have subsidiaries operating in highly inflationary economies, such as Argentina, Egypt and Turkey, and accordingly apply highly inflationary accounting for these subsidiaries. The condensed consolidated balance sheet at December 27, 2025 has been derived from the audited consolidated financial statements at that date, but does not include all of the information and footnotes required by GAAP for complete financial statements. These financial statements have been prepared on a basis that is substantially consistent with the accounting principles applied in our Annual Report on Form 10-K for the fiscal year ended December 27, 2025 (2025 Form 10-K). This report should be read in conjunction with our 2025 Form 10-K. In our opinion, these financial statements include all normal and recurring adjustments necessary for a fair presentation. The results for the 12 weeks ended March 21, 2026 are not necessarily indicative of the results expected for any future period or the full year.
Raw materials, direct labor and plant overhead, as well as purchasing and receiving costs, costs directly related to production planning, inspection costs and raw materials handling facilities, are included in cost of sales. The costs of moving, storing and delivering finished product, including merchandising activities, are included in selling, general and administrative expenses.
While our financial results in the United States and Canada (North America) are reported on a 12-week basis, all of our international operations are reported on a monthly calendar basis for which the months of January and February are reflected in our results for the 12 weeks ended March 21, 2026 and March 22, 2025.
The preparation of our condensed consolidated financial statements requires management to make estimates and assumptions that affect the amounts reported in our condensed consolidated financial statements and related disclosures. Additionally, the business and economic uncertainty resulting from volatile geopolitical conditions, an increasingly complex global tax environment, including changes in how existing laws are interpreted or enforced, expanded or retaliatory tariffs and changes in the interest rate and inflationary cost environment have made such estimates and assumptions more difficult to calculate. Accordingly, actual results and outcomes could differ from those estimates.
Our significant interim accounting policies include the recognition of a pro rata share of certain estimated annual sales incentives and certain advertising and marketing costs in proportion to revenue or volume, as applicable, and the recognition of income taxes using an estimated annual effective tax rate.
Unless otherwise noted, tabular dollars are in millions, except per share amounts. All per share amounts reflect common per share amounts, assume dilution unless otherwise noted, and are based on unrounded amounts. Certain reclassifications were made to the prior year’s financial statements to conform to the current year presentation.
Our Segments
We are organized into six reportable segments, as follows:
1)PepsiCo Foods North America (PFNA), which includes all of our convenient food businesses in the United States and Canada;
2)PepsiCo Beverages North America (PBNA), which includes all of our beverage businesses in the United States and Canada;
3)International Beverages Franchise (IB Franchise), which includes our international franchise beverage businesses, as well as our SodaStream business;
4)Europe, Middle East and Africa (EMEA), which includes our convenient food businesses and our beverage businesses with company-owned bottlers in Europe, the Middle East and Africa;
5)Latin America Foods (LatAm Foods), which includes all of our convenient food businesses in Latin America; and
6)Asia Pacific Foods, which consists of our convenient food businesses in Asia Pacific, including China, Australia and New Zealand, as well as India.
Net Revenue, Significant Expenses and Operating Profit by Segment
 12 Weeks Ended 3/21/2026
 PFNAPBNAIB FranchiseEMEALatAm FoodsAsia Pacific FoodsTotal
Net revenue$6,332 $6,391 $824 $2,823 $1,934 $1,139 $19,443 
Segment cost of sales (a)
2,392 2,992 234 1,673 780 657 
Segment selling, general and administrative expenses (a)
2,435 2,760 262 849 723 264 
Restructuring and impairment charges (b)
75 17 7 23 3 1 
Acquisition and divestiture-related charges/credits (c)
1 (114)— — — — 
Segment operating profit$1,429 $736 $321 $278 $428 $217 $3,409 
Corporate unallocated expenses(196)
Operating profit3,213 
Other pension and retiree medical benefits income58 
Net interest expense and other(301)
Income before income taxes$2,970 
 12 Weeks Ended 3/22/2025
 PFNAPBNAIB FranchiseEMEALatAm FoodsAsia Pacific FoodsTotal
Net revenue$6,213 $5,876 $759 $2,388 $1,661 $1,022 $17,919 
Segment cost of sales (a)
2,348 2,659 212 1,407 698 612 
Segment selling, general and administrative expenses (a)
2,290 2,622 268 748 612 249 
Restructuring and impairment charges (b)
24 125 2 13 7 1 
Acquisition and divestiture-related charges/credits (c)
15 10 — — — — 
Segment operating profit$1,536 $460 $277 $220 $344 $160 $2,997 
Corporate unallocated expenses(414)
Operating profit2,583 
Other pension and retiree medical benefits income23 
Net interest expense and other(264)
Income before income taxes$2,342 
(a)Does not include items recorded in the cost of sales or selling, general and administrative expenses lines on our income statement that are presented in the restructuring and impairment charges and acquisition and divestiture-related charges/credits lines of these tables.
(b)See Note 3 for further information related to restructuring and impairment charges.
(c)See Note 11 for further information related to acquisition and divestiture-related charges/credits.
Disaggregation of Net Revenue
Our primary performance obligation is the distribution and sales of beverage and convenient food products to our customers. The following table reflects the percentage of net revenue generated between our beverage business and our convenient food business:
12 Weeks Ended
3/21/20263/22/2025
Beverages(a)
Convenient Foods
Beverages(a)
Convenient Foods
North America50 %50 %49 %51 %
International (b)
27 %73 %27 %73 %
PepsiCo42 %58 %42 %58 %
(a)Beverage revenue from company-owned bottlers, which includes our consolidated bottling operations in our PBNA and EMEA segments, was 36% of our consolidated net revenue in each of the 12 weeks ended March 21, 2026 and March 22, 2025. Generally, our finished goods beverage operations produce higher net revenue but lower operating margins as compared to concentrate sold to authorized bottling partners for the manufacture of finished goods beverages.
(b)Beverage and convenient foods revenue generated from our EMEA segment was 34% and 66% of EMEA net revenue, respectively, in each of the 12 weeks ended March 21, 2026 and March 22, 2025.
Other Segment Information
Capital spending and depreciation and amortization of each segment are as follows:
12 Weeks Ended
 
Capital Spending(a)
Depreciation and Amortization
 3/21/20263/22/20253/21/20263/22/2025
PFNA$110 $195 $227 $210 
PBNA183 248 252 253 
IB Franchise9 16 18 19 
EMEA66 50 101 81 
LatAm Foods41 46 80 62 
Asia Pacific Foods16 24 28 23 
Total segment425 579 706 648 
Corporate22 24 36 36 
Total$447 $603 $742 $684 
(a) Asset and other balance sheet information for segments is not provided to our chief operating decision maker.