PepsiCo Q3 2026 profit rises 17% as revenue climbs 6%
Diluted earnings per share were $2.23, against $1.90 a year earlier, on revenue of $25.27bn for the quarter ended 5 September 2026.
Key takeaways
- Net income was $3.05bn, +17.1% from $2.60bn a year earlier; diluted EPS was $2.23 against $1.90 (+17.4%).
- Revenue was $25.27bn, +5.6% on the year and +4.5% on the previous quarter.
- Gross margin was 54.4% (a year earlier 53.6%) and operating margin 16.9% (14.9%).
PepsiCo Q3 2026 results at a glance
| Q3 2026 | Year earlier | Change | |
|---|---|---|---|
| Revenue | $25.27bn | $23.94bn | +5.6% |
| Gross profit | $13.75bn | $12.82bn | +7.3% |
| Operating income | $4.26bn | $3.57bn | +19.4% |
| Net income | $3.05bn | $2.60bn | +17.1% |
| Diluted EPS | $2.23 | $1.90 | +17.4% |
| Operating cash flow | $5.58bn | $4.47bn | +24.9% |
| Free cash flow* | $4.67bn | $3.48bn | +34.2% |
*Free cash flow is operating cash flow minus capital spending.
Sales and profit
Revenue went from $23.94bn to $25.27bn and net income from $2.60bn to $3.05bn. Against the previous quarter, revenue was +4.5% and diluted EPS moved from $2.18 to $2.23.
Margins
Gross margin (gross profit as a share of revenue) was 54.4% against 53.6% a year earlier, a change of +0.8 percentage points. Operating margin was 16.9% against 14.9% (+1.9 points).
Cash flow and balance sheet
Operating cash flow was $5.58bn and capital spending $916.0m, leaving free cash flow of $4.67bn (a year earlier $3.48bn). Cash and equivalents stood at $10.68bn against $8.13bn a year earlier; total debt was $56.68bn against $57.05bn.
How the shares moved
PepsiCo shares closed at $135.77 on 23 October 2026, −2.20% on the day, according to our end-of-day data. This analysis uses the latest quarter in our database (Q3 2026, filed 8 October 2026); a newer quarter is added once the company files it.
Our models
Our X-Ray Score for PepsiCo is 60 out of 100 (high confidence), built from five lenses: valuation 80, growth 48, profitability 64, health 39 and dividends 62. Our fair-value model puts the stock in the “Undervalued” band, with a blended estimate of $175 (range $169 to $181, low uncertainty). It is a model output, not a forecast and not advice. See the full PepsiCo X-Ray and how the X-Ray Score works.
What these numbers do not show
Our data has no analyst consensus, company guidance or management commentary for this quarter, so this page does not say whether the result was better or worse than expected.
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Educational only, not financial advice. Numbers beside the story are from our own data.