# 10-Q report from Pepsico, Inc. (PEP) — 2026 Q3 results — PEP

> Company: Pepsico, Inc. (PEP)
> Form: 10-Q · Period: 2026 Q3 results — PEP
> Publication date: 2026-10-08
> Official source: [SEC EDGAR Filing](https://www.sec.gov/Archives/edgar/data/77476/000007747626000048/pep-20260905.htm)
> Download PDF: https://cifraresearch.com/api/reports/010192b6-7bb3-4078-a8bd-b007dbcd0f3e.pdf
> Canonical URL: https://cifraresearch.com/en/informe/PEP/2026-Q3

## LAST 3 MONTHS

### Sales and Income Statement
- **BPA / EPS:** 2.23 $
- **Shares outstanding:** 1364M

| Concept | Current | Previous | Change |
|---|---|---|---|
| Sales | 25274M | 23937M | +5.59 % |
| Gross Profit | 13754M | 12824M | +7.25 % |
| Operating Income | 4260M | 3702M | +15.07 % |
| EBT | 3904M | 3331M | +17.2 % |
| Net Income | 3048M | 2603M | +17.1 % |

> *1: In the prior year there was an impairment of intangibles/brands of 133M, which is added back in the Prior Adjusted column of Operating Profit (3569M + 133M = 3702M). In the current period there were no impairments or amortizations of intangibles to adjust for.

### Cash Flow

| Concept | Normal | Adjusted |
|---|---|---|
| Cash Flow | 5585 | 6945.5 |
| CAPEX | 916 | 916 |
| FCF | 4669 | 6029.5 |
| FCF/Share | 3.42 $ | 4.42 $ |
| Dividend | 2021 | 2021 |
| Free | 2648 | 4008.5 |

**Scenarios:** Normal (WC=-1461) · Adjusted*1 (WC=-100)

> *1: WC = average of the last 10 fiscal years: -3%. As it is quarterly, the annual amount is divided by 4 = -100.5M. Deviation of reported working capital (-1461M) vs. theoretical WC (-100.5M): __-1360.5M__. Cash Flow after working capital adjustment is: 5585M - (__-1360.5M__) = 6945.5M.

### Capital Allocation

| Concept | Amount |
|---|---|
| Free | 2648 |
| Buybacks | -270 |
| Cash*1 | -424 |
| Debt*1 | -1333 |
| Total | 621 |

**Verification:** Does not reconcile: +621M remains unexplained between free capital and detected uses. Part of it, -431M, is the negative FX effect on cash for the quarter (36 weeks -175M vs +256M at 24 weeks of Q2); the rest corresponds to non-cash debt movements and unmapped items.

> *1: Balance sheet debt: 53214M -> 51881M (-1333M). Net debt: 42498M -> 40718M (-1780M). Balance sheet cash: 10251M -> 10675M (+424M); cash increased: use of capital (-); Cash row = -424M.

## FULL YEAR TO DATE (9 MONTHS)

### Sales and Income Statement
- **BPA / EPS:** 6.13 $
- **Shares outstanding:** 1364M

| Concept | Current | Previous | Change |
|---|---|---|---|
| Sales | 68898M | 64582M | +6.68 % |
| Gross Profit | 37596M | 35239M | +6.69 % |
| Operating Income | 11496M | 9934M | +15.72 % |
| EBT | 10726M | 7244M | +48.07 % |
| Net Income | 8356M | 5700M | +46.6 % |

> *1: In the prior year there was an impairment of intangibles/brands of 1993M (Rockstar and Be & Cheery brands), which is added back in the Prior Adjusted column of Operating Profit (7941M + 1993M = 9934M). In the current period there were no impairments or amortizations of intangibles to adjust for.

### Cash Flow

| Concept | Normal | Adjusted |
|---|---|---|
| Cash Flow | 7950 | 9220.6 |
| CAPEX | 2182 | 2182 |
| FCF | 5768 | 7038.6 |
| FCF/Share | 4.23 $ | 5.16 $ |
| Dividend | 5935 | 5935 |
| Free | -167 | 1103.6 |

**Scenarios:** Normal (WC=-2628) · Adjusted*1 (WC=-301)

> *1: WC = average of the last 10 fiscal years: -3%. The annual amount is divided by 4 per quarter (-100.5M per quarter) and multiplied by the 3 quarters elapsed: -301.4M in 9 months. Deviation of reported working capital (-2628M) vs. theoretical WC (-301.4M): __-2326.6M__. Cash Flow after working capital adjustment is: 7950M - (__-2326.6M__) = 10276.6M.
> *2: Taxes: The company should have paid 2467M in taxes (23% on adjusted EBT of 10726M) and only an estimated payment of 1651M is recorded in the cumulative 9-month period, calculated by reconciling tax expense less deferred taxes (the cash flow statement does not break out cash paid). Adjustment of __-816M__ to Adjusted Cash Flow for the tax discrepancy.
> *3: Stock Options / Share-Based Compensation (SBC): The company reports 240M in share-based compensation added back to operating cash flow. Assuming effective shareholder dilution and since it is usually granted at a discount, under a conservative approach the full amount of this item is deducted (__-240M__) from Adjusted Cash Flow. The final figure combines the three adjustments to Cash Flow: **7950M __+2326.6M__ (working capital) __-816M__ (taxes) __-240M__ (stock options) = 9220.6M.**

### Capital Allocation

| Concept | Amount |
|---|---|
| Free | -167 |
| Short-term investments*1 | -74 |
| Divestitures*2 | 89 |
| Acquisitions*3 | -148 |
| Buybacks | -749 |
| Cash*1 | -1516 |
| Debt*1 | 2699 |
| Total | 134 |

**Verification:** More or less reconciles. Still, it is possible that I have missed some detail.

> *1: Balance sheet debt: 49182M -> 51881M (+2699M). Net debt: 39652M -> 40718M (+1066M). Balance sheet cash: 9159M -> 10675M (+1516M); cash increased: use of capital (-); Cash row = -1516M. Short-term investments: net flow from marketable securities for the period = sales of 31M - purchases of 105M = -74M (use of capital).
> *2: Divestitures: 89M was received from the sale of property, plant, equipment and other assets (source of funds).
> *3: Acquisitions: 148M was allocated to the purchase of businesses, net of cash acquired (use of funds).

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*Análisis generado con IA por Cifra (https://cifraresearch.com) a partir de la fuente primaria en SEC EDGAR. Fines informativos, no constituye recomendación de inversión.*