By Sam Boughedda

Investing.com -- PepsiCo Inc. (NASDAQ:PEP) reported first-quarter results that exceeded analyst expectations on Thursday.

Adjusted earnings per share of $1.61 compared to the consensus estimate of $1.55. Revenue reached $19.44 billion, surpassing the $18.94 billion estimate and marking an 8.5% increase from $17.91 billion in the prior-year period.

The company’s organic revenue grew 2.6%, reflecting an acceleration from recent quarters. Chairman and CEO Ramon Laguarta said, "We are pleased with our first-quarter results, which featured an acceleration in both net revenue and organic revenue growth – with a notable improvement in convenient foods organic volume." The revenue growth was driven by effective net pricing and slight organic volume gains, with North America showing sequential improvement in both foods and beverages segments.

Operating profit increased 24% to $3.21 billion, while core operating profit rose 9% to $3.05 billion. Core operating margin expanded 10 basis points to 15.7%, aided by productivity savings and foreign exchange benefits, partially offset by operating cost increases. GAAP EPS increased 27% to $1.70, while core EPS grew 9% from $1.48 in the year-ago quarter.

PepsiCo affirmed its fiscal 2026 guidance, expecting organic revenue to increase between 2% and 4% and core constant currency EPS to grow between 4% and 6%. The midpoint of the EPS guidance range of 5% aligns with the company’s expectations. The company also expects foreign exchange translation to provide approximately a 1 percentage point benefit to both reported net revenue and core EPS growth.

The company plans to return approximately $8.9 billion to shareholders in 2026, including $7.9 billion in dividends and $1.0 billion in share repurchases, with a 4% dividend increase beginning in June 2026.

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