PEPSICO INC

Previous wording

In the 12 weeks ended March 21, 2026, our financial results outside of North America reflect the months of January and February. In the 12 weeks ended March 21, 2026, our operations outside of the United States generated 39% of our consolidated net revenue, with Mexico, Canada, China, Russia, the United Kingdom, Brazil and South Africa, collectively, comprising 23% of our consolidated net revenue. As a result, we are exposed to foreign exchange risks in the international markets in which our products are made, manufactured, distributed or sold. In the 12 weeks ended March 21, 2026, favorable foreign exchange contributed to net revenue performance by 3 percentage points primarily due to anappreciation of the Mexican peso, Russian ruble and euro. Currency declines against the U.S. dollar which are not offset could adversely impact our future financial results.

Current wording

In the 12 weeks ended June 13, 2026, our financial results outside of North America reflect the months of March, April and May. In the 24 weeks ended June 13, 2026, our financial results outside of North America reflect the months of January through May. In the 24 weeks ended June 13, 2026, our operations outside of the United States generated 43% of our consolidated net revenue, with Mexico, Russia, Canada, China, the United Kingdom, Brazil and South Africa, collectively, comprising 25% of our consolidated net revenue. As a result, we are exposed to foreign exchange risks in the international markets in which our products are made, manufactured, distributed or sold. In the 12 weeks ended June 13, 2026, favorable foreign exchange contributed to net revenue performance by 2 percentage points primarily due to an appreciation of the Mexican peso and Russian ruble, partially offset by a decline in the Turkish lira. In the 24 weeks ended June 13, 2026, favorable foreign exchange contributed to net revenue performance by 3 percentage points primarily due to an appreciation of the Mexican peso and Russian ruble. Currency declines against the U.S. dollar which are not offset could adversely impact our future financial results.

Previous wording

In addition, volatile economic, political, social and geopolitical conditions, civil unrest and wars and other military conflicts, acts of terrorism and natural disasters and other catastrophic events in certain markets in which our products are made, manufactured, distributed or sold, including in Argentina, Brazil, China, Mexico, the Middle East (including Egypt), Russia, Turkey and Ukraine, continue to result in challenging operating environments and have resulted in and could continue to result in changes in how we operate in certain of these markets. Debt and credit issues, currency controls or fluctuations, sanctions and export controls in certain of these international markets (including restrictions on the transfer of funds to and from certain markets) have also continued to impact our operations in certain of these international markets. We continue to closely monitor the economic, operating and political environment in the markets in which we operate, including risks of additional impairments or write-offs and currency fluctuation, and to identify actions to potentially mitigate any unfavorable impacts on our future results. Our operations in Russia accounted for 4% of our consolidated net revenue for the 12 weeks ended March 21, 2026. Russia accounted for 5% of our consolidated assets, including 19% of our consolidated cash and cash equivalents and 40% of our accumulated currency translation adjustment loss as of March 21, 2026.

Current wording

In addition, volatile economic, political, social and geopolitical conditions, civil unrest and wars and other military conflicts, acts of terrorism and natural disasters and other catastrophic events in certain markets in which our products are made, manufactured, distributed or sold, including in Argentina, Brazil, China, Mexico, the Middle East (including Egypt), Russia, Turkey and Ukraine, continue to result in challenging operating environments and have resulted in and could continue to result in changes in how we operate in certain of these markets. Debt and credit issues, currency controls or fluctuations, sanctions and export controls in certain of these international markets (including restrictions on the transfer of funds to and from certain markets) have also continued to impact our operations in certain of these international markets. We continue to closely monitor the economic, operating and political environment in the markets in which we operate, including risks of additional impairments or write-offs and currency fluctuation, and to identify actions to potentially mitigate anyunfavorable impacts on our future results. Our operations in Russia accounted for 6% and 5% of our consolidated net revenue for the 12 and 24 weeks ended June 13, 2026, respectively. Russia accounted for 6% of our consolidated assets, including 21% of our consolidated cash and cash equivalents, and 38% of our accumulated currency translation adjustment loss as of June 13, 2026.

Previous wording

The imposition of tariffs (including U.S. tariffs imposed or threatened to be imposed on China, the European Union, Canada and Mexico and other countries and any tariffs imposed by such countries) have impacted and could continue to impact our supply chain resulting in increased input costs, including the cost of certain raw materials and packaging. During the twelve weeks ended March 21, 2026, the U.S. Supreme Court ruled that many of the tariffs previously imposed under the International Emergency Economic Powers Act were invalid. The ultimate availability, timing, and amount of any potential refunds of such tariffs remain highly uncertain and are subject to further legal, regulatory, and administrative developments. In addition, the U.S. Administration initiated new tariffs and may impose additional tariffs. As a result, there remains significant uncertainty regarding the duration and scope of existing and future tariffs and the impact of such tariffs will continue to vary, including based on where inputs are sourced from and shipped to. In addition, any supply chain constraints, inflationary impacts or reduced consumer demand for our products as a result of such tariffs or ongoing macroeconomic uncertainty have impacted and could continue to impact our results. We will continue to evaluate the nature and extent of the impact of these tariffs on our business, to identify actions to potentially mitigate, where possible, any unfavorable impacts on our business and to monitor the regulatory and administrative developments around the potential refund of tariffs previously paid and assess their impact on our future results.

Current wording

The imposition of tariffs (including U.S. tariffs imposed or threatened to be imposed on China, the European Union, Canada and Mexico and other countries and any tariffs imposed by such countries) have impacted and could continue to impact our supply chain resulting in increased input costs, including the cost of certain raw materials and packaging. During the 24 weeks ended June 13, 2026, the U.S. Supreme Court ruled that many of the tariffs previously imposed under the International Emergency Economic Powers Act (IEEPA) were invalid. Following this ruling, we have submitted, and expect to continue to submit, tariff recovery claims through the U.S. Customs and Border Protection (CBP) seeking a refund of certain eligible IEEPA tariffs. While we have begun to receive, and may continue to receive, refunds of such tariffs, the ultimate recoverability, timing and amount of any such refunds remain uncertain and subject to CBP review as well as further legal, regulatory and administrative developments. In addition, the U.S. Administration initiated new tariffs and may impose additional tariffs. As a result, there remains significant uncertainty regarding the duration and scope of existing and future tariffs and the impact of such tariffs will continue to vary, including based on where inputs are sourced from and shipped to. In addition, any supply chain constraints, inflationary impacts or reduced consumer demand for our products as a result of such tariffs or ongoing macroeconomic uncertainty have impacted and could continue to impact our results. We will continue to evaluate the nature and extent of the impact of these tariffs on our business, to identify actions to potentially mitigate, where possible, any unfavorable impacts on our business and to monitor the regulatory and administrative developments around the potential refund of tariffs previously paid and assess their impact on our future results.

Previous wording

We report all of our international operations on a monthly calendar basis. The 12 weeks ended March 21, 2026 and March 22, 2025 include volume outside of North America for the months of January and February.

Current wording

We report all of our international operations on a monthly calendar basis. The 12 weeks ended June 13, 2026 and June 14, 2025 include volume outside of North America for the months of March, April and

Previous wording

The reported tax rate was even with the prior year, primarily reflecting higher tax benefits from foreign results, offset bythe impact of the OECD model global minimum tax.

Current wording

The reported tax rate increased 3.4 percentage points, primarily reflecting the prior-year release of federal interest accruals and the impairment of the Rockstar brand, as well as the current-year impact of the OECD model global minimum tax, partially offset by higher tax benefits from foreign results.

Previous wording

Other pension and retiree medical benefits income increased $35 million, primarily reflecting the impact of the prior year recognition of special termination benefits due to restructuring actions as part of our 2019 Productivity Plan, changes in discount rates and higher expected return on plan assets.

Current wording

Other pension and retiree medical benefits income increased $52 million, primarily reflecting the impact of changes in discount rates, higher expected return on plan assets, and the prior-year recognition of special termination benefits due to restructuring actions as part of our 2019 Productivity Plan.

Previous wording

Net interest expense and other increased$37 million, due to higher average debt balances, lower interest rates on average cash balances, higher losses on the market value of investments used to economically hedge a portion of our deferred compensation liability, partially offset by higher average cash balances and lower interest rates on average debt balances.

Current wording

Net interest expense and other increased $7 million, due to higher average debt balances and lower interest rates on average cash balances, partially offset by higher average cash balances, lower interest rates on average debt balances and higher gains on the market value of investments used to economically hedge a portion of our deferred compensation liability.

Previous wording

While our financial results in 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.

Current wording

While our financial results in 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 March, April and May are reflected in our results for the 12 weeks ended June 13, 2026 and June 14, 2025 and the months January through May are reflected in our results for the 24 weeks ended June 13, 2026 and June 14, 2025.

Previous wording

Net revenue increased 2%, primarily driven by an increase in organic volume and a favorable impact of acquisitions, partially offset by unfavorable net pricing.

Current wording

Net revenue increased slightly, primarily driven by an increase in organic volume and a favorable impact of an acquisition, partially offset by unfavorable net pricing.

Previous wording

Unit volume grew 2%, driven primarily by a 2% increase in savory snacks volume.

Current wording

Unit volume grew 1%, driven primarily by a 1% increase in savory snacks volume.

Previous wording

Operating profit decreased 7%, primarily reflecting certain operating cost increases, the unfavorable net pricing, a 5-percentage-point unfavorable impact ofgains associated with sales of certain assets in the prior year and higher restructuring charges. These impacts were partially offset by productivity savings and an increase in organic volume.

Current wording

Operating profit decreased 5%, primarily reflecting certain operating cost increases, the unfavorable net pricing and a 3-percentage-point impact of gains associated with sales of certain assets in the prior year. These impacts were partially offset by productivity savings.

Previous wording

Net revenue increased 9%, primarily driven by a favorable net impact of acquisitions and divestitures and effective net pricing, partially offset by an organic volume decline.

Current wording

Net revenue increased 7%, primarily driven by a favorable net impact of acquisitions and divestitures and effective net pricing, partially offset by an organic volume decline.

Previous wording

Unit volume declined 2.5%, primarily driven by a 3% decline in carbonated soft drink volume and a 2% decline in non-carbonated beverage volume.

Current wording

Unit volume declined 4%, primarily driven by a 4% decline in noncarbonated beverage (NCB) volume and a 3% decline in carbonated soft drink (CSD) volume.

Previous wording

Net revenue increased 9%, reflecting effective net pricing and a 4-percentage-point impact of favorable foreign exchange translation, partially offset by an organic volume decline.

Current wording

Net revenue increased 8%, primarily driven by a favorable net impact of acquisitions and divestitures and effective net pricing, partially offset by an organic volume decline.

Previous wording

Operating profit increased 60%, primarily driven by productivity savings, a favorable net impact ofacquisition and divestiture-related charges/credits related to our poppi acquisition, lower restructuring charges and the effective net pricing. These impacts were partially offset by certain operating cost increases, the decline in organic volume, higher advertising and marketing expenses and a 5-percentage-point impact of higher commodity costs.

Current wording

Operating profit improvement primarily reflects a prior-year impairment charge related to the Rockstar brand, productivity savings, a favorable net impact of acquisition and divestiture-related charges/credits related to our poppi acquisition, lower restructuring charges and the effective net pricing. These impacts were partially offset by certain operating cost increases, the decline in organic volume and a 5-percentage point impact of higher commodity costs.

Previous wording

Net revenue increased 11%, reflecting organic volume growth and a 4-percentage-point impact of favorable foreign exchange translation, partially offset by unfavorable net pricing.

Current wording

Net revenue increased 11%, reflecting organic volume growth, effective net pricing and a 2-percentage-point impact of favorable foreign exchange translation.

Previous wording

Unit volume grew 0.5%, reflecting broad-based increases, partially offset by a decline in Mexico.

Current wording

Unit volume grew 5%, primarily reflecting broad-based increases, led by India, partially offset by a decline in Mexico.

Previous wording

Convenient foods unit volume grew 9%, primarily reflecting growth in South Africa and the Middle East.

Current wording

Convenient foods unit volume grew 4%, primarily reflecting growth in the Middle East, Russia and South Africa.

Previous wording

Beverage unit volume grew 2%, primarily reflecting growth in the Middle East, partially offset by declines in Turkey and Russia.

Current wording

Beverage unit volume grew 1%, primarily reflecting growth in the Middle East, partially offset by a decline in Turkey.

Previous wording

Operating profit increased 16%, primarily reflecting the effective net pricing and a 4-percentage-point impact of favorable foreign exchange translation, partially offset by certain operating cost increases.

Current wording

Operating profit increased 16%, primarily reflecting productivity savings, the effective net pricing and a 13-percentage-point impact of favorable foreign exchange translation, driven primarily by the strengthening of the Mexican peso. These impacts were partially offset by certain operating cost increases and a 9-percentage-point impact of certain indirect tax credits in Brazil in the prior year.

Previous wording

Net revenue increased 16%, reflecting a 13-percentage-point impact of favorable foreign exchange translation, primarily driven by the strengthening of the Mexican peso, and effective net pricing, partially offset by a decline in organic volume.

Current wording

Net revenue increased 16%, reflecting a 12-percentage-point impact of favorable foreign exchange translation, driven primarily by the strengthening of the Mexican peso, and effective net pricing, partially offset by a decline in organic volume.

Previous wording

Unit volume grew 9%, primarily reflecting growth in India and China.

Current wording

Unit volume grew 10%, primarily reflecting growth in India and China.

Previous wording

Operating profit increased 36%, primarily reflecting productivity savings, the organic volume growth, a 10-percentage-point impact of lower commodity costs, primarily potatoes and packaging materials, and a 6-percentage-point impact of favorable foreign exchange translation. These impacts were partially offset by certain operating cost increases and the unfavorable net pricing.

Current wording

Operating profit increased 103%, primarily reflecting a prior-year impairment charge related to the Be & Cheery brand, productivity savings, the organic volume growth and a 10-percentage-point impact of lower commodity costs, primarily potatoes and packaging materials. These impacts were partially offset by certain operating cost increases.

Previous wording

Cost of sales, gross profit, selling, general and administrative expenses, other pension and retiree medical benefits income, provision for income taxes and net income attributable to PepsiCo, each adjusted for items affecting comparability, operating profit and net income attributable to PepsiCo per common share – diluted, each adjusted for items affecting comparability and the corresponding constant currency growth rates

Current wording

Cost of sales, gross profit, selling, general and administrative expenses, impairment of intangible assets, other pension and retiree medical benefits income, provision for income taxes and net income attributable to PepsiCo, each adjusted for items affecting comparability, operating profit and net income attributable to PepsiCo per common share – diluted, each adjusted for items affecting comparability and the corresponding constant currency growth rates

Previous wording

These measures exclude the net impact of mark-to-market gains and losses on centrally managed commodity derivatives that do not qualify for hedge accounting, restructuring and impairment charges related to our 2019 Productivity Plan and charges and credits associated with our acquisitions and divestitures (see “Items Affecting Comparability” for a detailed description of each of these items). We also evaluate performance on operating profit and net income attributable to PepsiCo per common share – diluted, each adjusted for items affecting comparability on a constant currency basis, which measure our 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. We believe these measures provide useful information in evaluating the results of our business because they exclude items that we believe are not indicative of our ongoing performance or that we believe impact comparability with the prior year.

Current wording

These measures exclude the net impact of mark-to-market gains and losses on centrally managed commodity derivatives that do not qualify for hedge accounting, restructuring and impairment charges related to our 2019 Productivity Plan, charges and credits associated with our acquisitions and divestitures, impairment and other charges and the impact of settlement and curtailment gains and losses related to pension and retiree medical plans (see “Items Affecting Comparability” for a detailed description of each of these items). We also evaluate performance on operating profit and net income attributable to PepsiCo per common share – diluted, each adjusted for items affecting comparability on a constant currency basis, which measure our 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. We believe these measures provide useful information in evaluating the results of our business because they exclude items that we believe are not indicative of our ongoing performance or that we believe impact comparability with the prior year.

Previous wording

The 2019 Productivity Plan leverages new technology and business models to further simplify, harmonize and automate processes; re-engineers our go-to-market and information systems, including deploying the right automation for each market; and simplifies our organization and optimizes our manufacturing and supply chain footprint. To build on the successful implementation of the 2019 Productivity Plan, in 2024, we further expanded and extended the plan through the end of 2030 to take advantage of additional opportunities within the initiatives described above. As a result, we expect to incur pre-tax charges of approximately $6.15 billion, including cash expenditures of approximately $5.1 billion. Plan-to-date through March 21, 2026, we have incurred pre-tax charges of $3.7 billion, including cash expenditures of $2.8 billion. We expect to incur the majority of the remaining pre-tax charges and cash expenditures through 2027, with the balance to be incurred through 2030. Charges include severance and other employee costs, asset impairments and other costs.

Current wording

The 2019 Productivity Plan leverages new technology and business models to further simplify, harmonize and automate processes; re-engineers our go-to-market and information systems, including deploying the right automation for each market; and simplifies our organization and optimizes our manufacturing and supply chain footprint. To build on the successful implementation of the 2019 Productivity Plan, in 2024, we further expanded and extended the plan through the end of 2030 to take advantage of additional opportunities within the initiatives described above. As a result, we expect to incur pre-tax charges of approximately $6.15 billion, including cash expenditures of approximately $5.1 billion. Plan-to-date through June 13, 2026, we have incurred pre-tax charges of $3.8 billion, including cash expenditures of $3.0 billion. We expect to incur the majority of the remaining pre-tax charges and cash expenditures through 2027, with the balance to be incurred through 2030. Charges include severance and other employee costs, asset impairments and other costs.

Previous wording

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. Merger and integration charges include employee-related costs, closing costs and other integration costs.

Current wording

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. Merger and integration charges include distribution agreement termination fees, employee-related costs, closing costs and other integration costs.

Previous wording

We believe that our cash generating capability and financial condition, together with our revolving credit facilities, working capital lines and other available methods of debt financing, such as commercial paper borrowings and long-term debt financing, will be adequate to meet our operating, investing and financing needs, including with respect to our net capital spending plans. Our primary sources of liquidity include cash from operations, proceeds obtained from issuances of commercial paper and long-term debt, and cash and cash equivalents. These sources of cash are available to fund cash outflows that have both a short- and long-term component, including debt repayments and related interest payments; payments for acquisitions; operating leases; purchase, marketing, and other contractual commitments, including capital expenditures and the transition tax liability under the Tax Cuts and Jobs Act (TCJ Act). In addition, these sources of cash fund other cash outflows including anticipated dividend payments and share repurchases. We do not have guarantees or off-balance sheet financing arrangements, including variable interest entities, that we believe could have a material impact on our liquidity. See “Our Business Risks” and Note 7 to our condensed consolidated financial statements included in this Form 10-Q, as well as “Item 1A. Risk Factors,” “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations – Our Business Risks” and Note 8 to our consolidated financial statements included in our 2025 Form 10-K for further information.

Current wording

We believe that our cash generating capability and financial condition, together with our revolving credit facilities, working capital lines and other available methods of debt financing, such as commercial paper borrowings and long-term debt financing, will be adequate to meet our operating, investing and financing needs, including with respect to our net capital spending plans. Our primary sources of liquidity include cash from operations, proceeds obtained from issuances of commercial paper and long-term debt, and cash and cash equivalents. These sources of cash are available to fund cash outflows that have both a short- and long-term component, including debt repayments and related interest payments; payments for acquisitions; operating leases; purchase, marketing, and other contractual commitments, including capital expenditures. In addition, these sources of cash fund other cash outflows including anticipated dividend payments and share repurchases. We do not have guarantees or off-balance sheet financing arrangements, including variable interest entities, that we believe could have a material impact on our liquidity. See “Our Business

Previous wording

As of March 21, 2026, cash, cash equivalents and short-term investments in our consolidated subsidiaries outside of Russia that are subject to currency controls or currency exchange restrictions were not material. As of March 21, 2026, Russia accounted for 19% of our consolidated cash and cash equivalents. Our sources and uses of cash were not materially adversely impacted by the cash and cash equivalents held in Russia and, to date, we have not identified any material impact on our liquidity or capital resources as a result of these amounts. See “Our Business Risks” for further information on our operations in Russia.

Current wording

As of June 13, 2026, cash, cash equivalents and short-term investments in our consolidated subsidiaries outside of Russia that are subject to currency controls or currency exchange restrictions were not material. As of June 13, 2026, Russia accounted for 21% of our consolidated cash and cash equivalents. Our sources and uses of cash were not materially adversely impacted by the cash and cash equivalents held in Russia and, to date, we have not identified any material impact on our liquidity or capital resources as a result of these amounts. See “Our Business Risks” for further information on our operations in Russia.

Previous wording

The TCJ Act imposed a one-time mandatory transition tax on undistributed international earnings. As of March 21, 2026, our mandatory transition tax liability was $965 million, which was fully paid in April 2026. See “Our Liquidity and Capital Resources” and Note 5 to our consolidated financial statements included in our 2025 Form 10-K for further discussion of the TCJ Act.

Current wording

The TCJ Act imposed a one-time mandatory transition tax on undistributed international earnings. As of June 13, 2026, our final mandatory transition tax liability of $965 million has been paid. See “Our Liquidity and Capital Resources” and Note 5 to our consolidated financial statements included in our 2025 Form 10-K for further discussion of the TCJ Act.

Previous wording

During the 12 weeks ended March 21, 2026, net cash provided by operating activities was $41 million, compared to net cash used for operating activities of $1.0 billion in the prior-year period. The increase in operating cash flow primarily reflects favorable operating profit performance and favorable working capital comparisons.

Current wording

During the 24 weeks ended June 13, 2026, net cash provided by operating activities was $2.4 billion, compared to net cash provided by operating activities of $1.0 billion in the prior-year period. The increase in operating cash flow primarily reflects favorable operating profit performance and favorable working capital comparisons.

Previous wording

During the 12 weeks ended March 21, 2026, net cash used for investing activities was$0.5 billion, primarily reflecting net capital spending of$0.4 billion.

Current wording

During the 24 weeks ended June 13, 2026, net cash used for investing activities was$1.4 billion, primarily reflecting net capital spending of$1.2 billion.

Previous wording

During the 12 weeks ended March 21, 2026, net cash provided by financing activities was $1.7 billion, primarily reflecting proceeds from the issuances of long-term debt of $3.0 billion and net proceeds from short-term borrowings of $2.4 billion, partially offset by the return of operating cash flow to our shareholders through dividend payments and share repurchases of $2.1 billion, as well as payments of long-term debt borrowings of $1.6 billion.

Current wording

During the 24 weeks ended June 13, 2026, net cash used for financing activities was $0.1 billion, primarily reflecting the return of operating cash flow to our shareholders through dividend payments and share repurchases of $4.4 billion and payments of long-term debt borrowings of $2.2 billion, offset by net proceeds of short-term borrowings of $3.5 billion and proceeds from the issuances of long-term debt of $3.0 billion.

Previous wording

We annually review our capital structure with our Board of Directors, including our dividend policy and share repurchase activity. On February 3, 2026, we announced a new share repurchase program providing for the repurchase of up to $10 billion of PepsiCo common stock which commenced on February 1, 2026 and will expire on February 28, 2030. In addition, on February 3, 2026, we announced a 4% increase in our annualized dividend to $5.92 per share from $5.69 per share, effective with the dividend expected to be paid in June 2026. We expect to return a total of approximately $8.9 billion to shareholders in 2026, comprising dividends of approximately $7.9 billion and share repurchases of approximately $1.0 billion.

Current wording

We annually review our capital structure with our Board of Directors, including our dividend policy and share repurchase activity. On February 3, 2026, we announced a new share repurchase program providing for the repurchase of up to $10 billion of PepsiCo common stock which commenced on February 1, 2026 and will expire on February 28, 2030. In addition, on February 3, 2026, we announced a 4% increase in our annualized dividend to $5.92 per share from $5.69 per share, effective with the dividend paid in June 2026. We expect to return a total of approximately $8.9 billion to shareholders in 2026, comprising dividends of approximately $7.9 billion and share repurchases of approximately $1.0 billion.

Previous wording

The table below reconciles net cash provided by/(used for) operating activities, as reflected on our cash flow statement, to our free cash flow. Free cash flow is a non-GAAP financial measure. For further information on free cash flow, see “Non-GAAP Measures.”

Current wording

The table below reconciles net cash provided by operating activities, as reflected on our cash flow statement, to our free cash flow. Free cash flow is a non-GAAP financial measure. For further information on free cash flow, see “Non-GAAP Measures.”

Previous wording

We have reviewed the Condensed Consolidated Balance Sheet of PepsiCo, Inc. and subsidiaries (the Company) as of March 21, 2026, the related Condensed Consolidated Statements of Income, Comprehensive Income, Cash Flows and Equity for the twelve weeks ended March 21, 2026 and March 22, 2025, and the related notes (collectively, the consolidated interim financial information). Based on our reviews, we are not aware of any material modifications that should be made to the consolidated interim financial information for it to be in conformity with U.S. generally accepted accounting principles.

Current wording

We have reviewed the Condensed Consolidated Balance Sheet of PepsiCo, Inc. and subsidiaries (the Company) as of June 13, 2026, the related Condensed Consolidated Statements of Income, Comprehensive Income, and Equity for the twelve and twenty-four weeks ended June 13, 2026 and June 14, 2025, the related Condensed Consolidated Statement of Cash Flows for the twenty-four weeks ended June 13, 2026 and June 14, 2025, and the related notes (collectively, the consolidated interim financial information). Based on our reviews, we are not aware of any material modifications that should be made to the consolidated interim financial information for it to be in conformity with U.S. generally accepted accounting principles.