PepsiCo said operating profit decreased 8% and operating margin declined 1.7 percentage points. The company cited certain operating cost increases, a decline in organic volume, a 8-percentage-point impact of higher commodity costs, including a 3-percentage-point impact of tariffs, and higher acquisition and divestiture-related charges as factors.

1. 01

   PepsiCo said operating profit decreased 8% and operating margin declined 1.7 percentage points. The company cited certain operating cost increases, a decline in organic volume, a 8-percentage-point impact of higher commodity costs, including a 3-percentage-point impact of tariffs, and higher acquisition and divestiture-related charges as factors.

2. 02

   PepsiCo said net cash provided by operating activities for the 36 weeks was $5.5 billion, a decrease from $6.2 billion in the prior-year period, reflecting the decline in operating profit. Net cash used in investing activities was $5.2 billion, with the poppi acquisition at $1.9 billion, the Siete acquisition at $1.2 billion and net capital expenditures of $2.2 billion as key items.

3. 03

   PepsiCo said net cash used in financing activities for the 36 weeks was $1.0 billion, with dividends and share repurchases of $6.4 billion and long-term debt repayments of $3.2 billion partially offset by proceeds from long-term debt issuances of $8.2 billion. The company said it expects 2025 shareholder returns of approximately $7.6 billion in dividends and approximately $1.0 billion in share repurchases, for a total of approximately $8.6 billion.

4. 04

   PepsiCo said Russia accounted for 5.5% and 5% of consolidated net revenue for the 12 and 36 weeks, respectively, and 15% of consolidated cash and cash equivalents as of September 6, 2025. The company said foreign exchange was favorable to net revenue performance by 0.5 percentage points for the 12 weeks and unfavorable by 1 percentage point for the 36 weeks.

Key figures

Quarter ended September 6, 2025

Revenue

$23.9B

Operating income

$3.6B

Net income

$2.6B

EPS

$1.90

Gross profit

$12.8B

Analysis scope · Management's discussion (MD&A)We analyzed excerpts of the Management's Discussion and Analysis (MD&A) section (with omissions). Other sections of the report, such as the notes to the financial statements and risk factors, were not reviewed.

AI summarized the filing and translated the summary into English; it may differ from the original. For reference only, not investment advice. AI translated the published Korean report into English. Figures are copied as filed, not recalculated.

Original filing

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