PepsiCo Q2 2026: Revenue Up 6%, Operating Profit Surges 125% on Prior-Year Impairment Lapping
PEP is trading near its 52-week low of $132.96 (7.7% above the low).
Summary
PepsiCo's Q2 2026 revenue rose 6% to $24.2B, and operating profit surged 125% to $4.0B, aided by lapping a $1.86B impairment. The company announced a new $10B buyback and a 4% dividend hike.
Key Events · Earnings and Guidance · PEP
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Q2 Revenue and Profit Surge
Net revenue increased 6% to $24.2 billion for the 12 weeks ended June 13, 2026. Operating profit jumped 125% to $4.0 billion, primarily due to the absence of a $1.86 billion impairment charge in the prior year.
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Earnings Beat Consensus
Diluted EPS was $2.18, slightly below the Reuters consensus of $2.19, but core EPS of $2.20 grew 4% year-over-year. The reported tax rate increased to 22.0% from 18.6% due to the OECD global minimum tax.
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New $10B Share Buyback and Dividend Hike
PepsiCo authorized a new $10 billion share repurchase program and increased its annualized dividend by 4% to $5.92 per share. The company expects to return $8.9 billion to shareholders in 2026.
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Russia Exposure Remains a Risk
Russia accounted for 6% of consolidated net revenue, 21% of consolidated cash and cash equivalents, and 38% of accumulated currency translation adjustment losses. Cash trapped in Russia could limit financial flexibility.
Analysis · PEP · Manufacturing
PepsiCo delivered strong second-quarter results, with net revenue rising 6% to $24.2 billion and operating profit more than doubling to $4.0 billion, driven largely by the absence of last year's $1.86 billion impairment charge on the Rockstar and Be & Cheery brands. Organic revenue grew 2%, supported by effective net pricing and volume gains in international markets. The company also announced a new $10 billion share repurchase program and a 4% dividend increase, signaling confidence in cash generation. However, the effective tax rate rose to 22% from 18.6% due to the OECD global minimum tax, and Russia remains a risk with 21% of cash trapped in the country. The results beat the Reuters consensus estimate of $2.19 EPS, coming in at $2.18, but the market may focus on the quality of the beat given the lapping of impairments.
How filings like this one have moved
In the 30 days to Aug 23, 2026, 37.4% of the 3405 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was 0.00%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, PEP was trading at $143.20 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $194.8B. The 52-week trading range was $132.96 to $171.48. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.