PepsiCo Inc. · Earnings release · 8-K Exhibit 99

PepsiCo Reports Second-Quarter 2026 Results

Second-Quarter and Year-to-Date Results1

•Net revenue increased 6.4% and 7.3%, respectively

•Organic revenue2 increased 2.4% and 2.5%, respectively

•Earnings per share (EPS) increased 137% and 72%, respectively

•Core2 EPS increased 4% and 6%, respectively

•Core constant currency2 EPS increased 1% and 3%, respectively

Guidance

•Company affirms fiscal 2026 financial guidance2

PURCHASE, N.Y. - July 9, 2026 - PepsiCo, Inc. (NASDAQ: PEP) today reported results for second-quarter 2026.

"Our second quarter results featured strong organic volume and net revenue growth for the global convenient foods and global beverages businesses. Year-to-date, PepsiCo's global organic volume has increased at the highest rate since 2022 - aided by the strength of the international business and the T1continued evolution of the portfolio to offer more choices through portion control varieties, diverse ingredients, functional benefits such as hydration, protein and fiber, energy and zero sugar beverage varieties," said Chairman and CEO, Ramon Laguarta.

Laguarta continued, "Looking ahead, we will continue to execute on our strategic priorities with a T2focus on accelerating top line growth – including the restaging of certain global brands, innovating with emerging, functional and permissible offerings and investing in certain affordability initiatives. We are also T3elevating productivity across the organization to improve operating leverage."

Second-Quarter

Year-to-Date

($ in millions, except EPS)

Change

Change

Net revenue

Organic revenue performance

Operating profit

Operating margin

Core operating profit

4%

6%

Core operating margin

EPS

Core EPS

4%

6%

Core constant currency EPS

1%

3%

1 Versus the prior year.

2 Please refer to the reconciliation of generally accepted accounting principles (GAAP) and non-GAAP information in the attached exhibits and to the Glossary for the definitions of non-GAAP financial measures, including “Organic revenue performance,” “Core” and “Constant currency,” and to “Guidance and Outlook” for additional information regarding PepsiCo’s full-year 2026 financial guidance. PepsiCo provides guidance on a non-GAAP basis as we cannot predict certain elements which are included in reported GAAP results, including the impact of foreign exchange and commodity mark-to-market net impacts. Please refer to PepsiCo’s Quarterly Report on Form 10-Q for the 12 and 24 weeks ended June 13, 2026 (Q2 2026 Form 10-Q) filed with the Securities and Exchange Commission (SEC) for additional information regarding PepsiCo’s financial results.

1

Second-Quarter Results Discussion

•Net revenue increased 6.4% due to 2.4% organic revenue growth, T4a 2.2-percentage-point benefit from foreign exchange translation and a 1.8-percentage-point net benefit from acquisitions and divestitures. T5Organic revenue growth reflects the benefits associated with effective net pricing and a contribution from organic volume growth.

◦In North America, the T6convenient foods business gained volume market share aided by innovation and affordability initiatives. Convenient foods net revenue declined and primarily reflects lower effective net pricing. The beverages business delivered strong net revenue growth, primarily reflecting the benefits of acquisitions made in 2025 and organic growth.

◦The T7international businesses performed well with each segment delivering strong net revenue growth - aided by organic volume growth within Asia Pacific Foods, International Beverages Franchise and Europe, Middle East and Africa and a sequential improvement in organic volume trends in Latin America Foods.

•Operating profit increased 125% and operating margin expanded 875 basis points, reflecting prior-year impairment charges related to the Rockstar and Be & Cheery brands, lower restructuring charges and a favorable net impact of acquisition and divestiture-related charges/credits. Core operating profit increased 4%, with T8core operating margin contracting 40 basis points. The core operating profit performance was primarily driven by productivity savings and effective net pricing, partially offset by certain operating cost increases.

•EPS increased 137% and core EPS increased 4%, primarily driven by operating profit growth.

Year-to-Date Results Discussion

•Net revenue increased 7.3% due to a 2.7-percentage-point benefit from foreign exchange translation, 2.5% organic revenue growth and a 2.1-percentage-point net benefit from acquisitions and divestitures. Organic revenue growth reflects the benefits associated with effective net pricing and a contribution from organic volume growth.

◦In North America, organic volume and volume market share increased for the convenient foods business aided by innovation and affordability initiatives. Convenient foods net revenue grew slightly, reflecting organic volume growth and benefits of an acquisition, offset by lower effective net pricing. The beverages business delivered strong net revenue growth, primarily reflecting acquisitions made in 2025 and organic growth.

◦The international businesses performed well with each segment delivering strong net revenue growth - aided by organic volume growth within Asia Pacific Foods, Europe, Middle East and Africa and International Beverages Franchise.

•Operating profit increased 65% and operating margin expanded 585 basis points, reflecting prior-year impairment charges related to the Rockstar and Be & Cheery brands, a favorable net impact of acquisition and divestiture-related charges/credits and lower restructuring charges. Core operating profit increased 6%, with core operating margin contracting 15 basis points. The core operating profit performance was primarily driven by productivity savings and effective net pricing, partially offset by certain operating cost increases.

•EPS increased 72% and core EPS increased 6%, primarily driven by operating profit growth.

2

Summary Second-Quarter 2026 Performance

Revenue

Volume(a)

GAAP Reported

% Change

Percentage Point Impact

Organic

% Change

% Change

Foreign Exchange Translation

Acquisitions and Divestitures

Convenient Foods

Beverages

PepsiCo Foods North America (PFNA)

(2)

—

—

(2)

—

PepsiCo Beverages North America (PBNA)

7

—

(6)

1

(4)

International Beverages Franchise (IB Franchise)

(2)

—

9

5

Europe, Middle East and Africa (EMEA)

(3)

—

6

4

1

Latin America Foods (LatAm Foods)

—

4

—

Asia Pacific Foods

(3)

—

9

Total

6

(2)

(2)

2

3

2

Operating Profit and EPS

GAAP Reported % Change

Percentage Point Impact

Core Constant Currency

% Change

Items Affecting Comparability

Foreign Exchange Translation

PFNA

—

(8)

PBNA

n/m

n/m

—

—

IB Franchise

—

(2)

EMEA

(3)

LatAm Foods

(2)

1

Asia Pacific Foods

n/m

n/m

(3)

Corporate unallocated expenses

—

Total

(3)

1

EPS

(3)

1

(a)Excludes the impact of acquisitions and divestitures. In certain instances, the volume change shown here differs from the impact of organic volume change on net revenue performance disclosed in the Organic Revenue Performance table on page A-7, due to the impacts of product mix, nonconsolidated joint venture volume, and, for our franchise beverage businesses, temporary timing differences between bottler case sales (BCS) and concentrate shipments and equivalents (CSE). We report net revenue from our franchise beverage businesses based on CSE. The volume sold by our nonconsolidated joint ventures has no direct impact on our net revenue.

n/m - Not meaningful due to the impact of prior-year impairment and other charges.

Note: Amounts may not sum due to rounding.

Organic revenue and core constant currency results are non-GAAP financial measures. Please refer to the reconciliation of GAAP and non-GAAP information in the attached exhibits and to the Glossary for definitions of “Organic revenue performance,” “Core” and “Constant currency.”

3

Summary Year-to-Date 2026 Performance

Revenue

Volume(a)

GAAP Reported

% Change

Percentage Point Impact

Organic

% Change

% Change

Foreign Exchange Translation

Acquisitions and Divestitures

Convenient Foods

Beverages

PFNA

—

—

—

1

PBNA

8

—

(6)

1

(3)

IB Franchise

(3)

—

8

3

EMEA

(6)

—

6

6

1

LatAm Foods

—

4

(1)

Asia Pacific Foods

(3)

—

8

Total

7

(3)

(2)

3

1

Operating Profit and EPS

GAAP Reported

% Change

Percentage Point Impact

Core Constant Currency

% Change

Items Affecting Comparability

Foreign Exchange Translation

PFNA

(5)

(1)

—

(6)

PBNA

n/m

n/m

—

IB Franchise

(3)

EMEA

(5)

LatAm Foods

(2)

3

Asia Pacific Foods

(5)

Corporate unallocated expenses

—

2

Total

(3)

3

EPS

(3)

3

(a)Excludes the impact of acquisitions and divestitures. In certain instances, the volume change shown here differs from the impact of organic volume change on net revenue performance disclosed in the Organic Revenue Performance table on page A-7, due to the impacts of product mix, nonconsolidated joint venture volume, and, for our franchise beverage businesses, temporary timing differences between BCS and CSE. We report net revenue from our franchise beverage businesses based on CSE. The volume sold by our nonconsolidated joint ventures has no direct impact on our net revenue.

n/m - Not meaningful due to the impact of prior-year impairment and other charges.

Note: Amounts may not sum due to rounding.

Organic revenue and core constant currency results are non-GAAP financial measures. Please refer to the reconciliation of GAAP and non-GAAP information in the attached exhibits and to the Glossary for definitions of “Organic revenue performance,” “Core” and “Constant currency.”

4

Fiscal 2026 Guidance and Outlook

The Company provides guidance on a non-GAAP basis as we cannot predict certain elements which are included in reported GAAP results, including the impact of foreign exchange translation and commodity mark-to-market net impacts.

For 2026, the Company continues to expect:

•G1Organic revenue to increase between 2 and 4 percent;

•G2Core constant currency EPS to increase between 4 and 6 percent;

•G3A core annual effective tax rate of approximately 22 percent;

•Capital spending to be below 5 percent of net revenue;

•A free cash flow conversion ratio of at least 80 percent; and

•G4Total cash returns to shareholders of approximately $8.9 billion, comprised of G5dividends of $7.9 billion and G6share repurchases of $1.0 billion.

The Company also continues to expect a foreign exchange translation tailwind of approximately 1 percentage point to benefit reported net revenue and core EPS growth, based on current foreign exchange rates. In addition, acquisitions, net of divestitures, that occurred in 2025 are expected to contribute 1 percentage point to reported net revenue growth in 2026.

The assumptions and the guidance above imply G7net revenue growth within a range of 4 to 6 percent and G8core EPS growth of approximately 5 to 7 percent in fiscal 2026, which includes the anticipated impact of global minimum tax regulations.

Prepared Management Remarks and Live Question and Answer Webcast

At approximately 6:00 a.m. (Eastern time) on July 9, 2026, the Company will post prepared management remarks (in pdf format) regarding its first quarter results and business update, including its outlook for 2026, at https://www.pepsico.com/investors. At 8:15 a.m. (Eastern time) on July 9, 2026, the Company will host a live question and answer session with investors and financial analysts. Further details will be accessible on the Company’s website at https://www.pepsico.com/investors.

Contacts:

Investor Relations

Communications

investor@pepsico.com

pepsicomediarelations@pepsico.com

5

PepsiCo, Inc. and Subsidiaries

Condensed Consolidated Statement of Income

(in millions, except per share amounts, unaudited)

12 Weeks Ended

24 Weeks Ended

Net Revenue

$

$

$

$

Cost of sales

Gross profit

Selling, general and administrative expenses

Impairment of intangible assets (a)

—

—

Operating Profit

Other pension and retiree medical benefits income

Net interest expense and other

Income before income taxes

Provision for income taxes

Net income

Less: Net income attributable to noncontrolling interests

Net Income Attributable to PepsiCo

$

$

$

$

Diluted

Net income attributable to PepsiCo per common share

$

$

$

$

Weighted-average common shares outstanding

(a)For the 12 and 24 weeks ended June 14, 2025, we recognized charges related to the impairments of our Rockstar and Be & Cheery brands.

A - 1

PepsiCo, Inc. and Subsidiaries

Condensed Consolidated Statement of Cash Flows

(in millions, unaudited)

24 Weeks Ended

Operating Activities

Net income

$

$

Depreciation and amortization

Impairment and other charges

—

Operating lease right-of-use asset amortization

Share-based compensation expense

Restructuring and impairment charges

Cash payments for restructuring charges

Acquisition and divestiture-related charges/credits

Cash payments for acquisition and divestiture-related charges

Pension and retiree medical plan expenses

Pension and retiree medical plan contributions

Deferred income taxes and other tax charges/credits

Tax payments related to the Tax Cuts and Jobs Act

Change in assets and liabilities:

Accounts and notes receivable

Inventories

Prepaid expenses and other current assets

Accounts payable and other current liabilities

Income taxes payable

Other, net

Net Cash Provided by Operating Activities

Investing Activities

Capital spending

Sales of property, plant and equipment

Acquisitions, net of cash acquired, investments in noncontrolled affiliates and purchases of intangible and other assets

Short-term investments, by original maturity:

More than three months - purchases

—

More than three months - maturities

8

More than three months - sales

—

Three months or less, net

Other investing, net

Net Cash Used for Investing Activities

(Continued on following page)

A - 2

PepsiCo, Inc. and Subsidiaries

Condensed Consolidated Statement of Cash Flows (continued)

(in millions, unaudited)

24 Weeks Ended

Financing Activities

Proceeds from issuances of long-term debt

$

$

Payments of long-term debt

Short-term borrowings, by original maturity:

More than three months - proceeds

More than three months - payments

Three months or less, net

Cash dividends paid

Share repurchases

Proceeds from exercises of stock options

Withholding tax payments on restricted stock units and performance stock units converted

Other financing

(2)

Net Cash (Used for)/Provided by Financing Activities

Effect of exchange rate changes on cash and cash equivalents and restricted cash

Net Increase/(Decrease) in Cash and Cash Equivalents and Restricted Cash

Cash and Cash Equivalents and Restricted Cash, Beginning of Year

Cash and Cash Equivalents and Restricted Cash, End of Period

$

$

Supplemental Non-Cash Activity

Right-of-use assets obtained in exchange for lease obligations

$

$

A - 3

PepsiCo, Inc. and Subsidiaries

Condensed Consolidated Balance Sheet

(in millions, except per share amounts)

(unaudited)

ASSETS

Current Assets

Cash and cash equivalents

$

$

Short-term investments

Accounts and notes receivable, net

Inventories:

Raw materials and packaging

Work-in-process

Finished goods

Prepaid expenses and other current assets

Total Current Assets

Property, Plant and Equipment, net

Amortizable Intangible Assets, net

Goodwill

Other Indefinite-Lived Intangible Assets

Investments in Noncontrolled Affiliates

Deferred Income Taxes

Other Assets

Total Assets

$

$

LIABILITIES AND EQUITY

Current Liabilities

Short-term debt obligations

$

$

Accounts payable and other current liabilities

Total Current Liabilities

Long-Term Debt Obligations

Deferred Income Taxes

Other Liabilities

Total Liabilities

Commitments and contingencies

PepsiCo Common Shareholders’ Equity

Common stock, par value 12/3¢ per share (authorized 3,600 shares; issued, net of repurchased common stock at par value: 1,366 and 1,367 shares, respectively)

Capital in excess of par value

Retained earnings

Accumulated other comprehensive loss

Repurchased common stock, in excess of par value (501 and 500 shares, respectively)

Total PepsiCo Common Shareholders’ Equity

Noncontrolling interests

Total Equity

Total Liabilities and Equity

$

$

A - 4

Non-GAAP Measures

In discussing financial results and guidance, the Company refers to the following measures which are not in accordance with U.S. Generally Accepted Accounting Principles (GAAP): organic revenue performance, core results, core constant currency results, free cash flow and free cash flow conversion. We use non-GAAP financial measures internally to make operating and strategic decisions, including the preparation of our annual operating plan, evaluation of our overall business performance and as a factor in determining compensation for certain employees. We believe presenting non-GAAP financial measures provides additional information to facilitate comparison of our historical operating results and trends in our underlying operating results and provides additional transparency on how we evaluate our business. We also believe presenting these measures allows investors to view our performance using the same measures that we use in evaluating our financial and business performance and trends.

We consider quantitative and qualitative factors in assessing whether to adjust for the impact of items that may be significant or that could affect an understanding of our ongoing financial and business performance or trends. Examples of items for which we may make adjustments include: amounts related to mark-to-market gains or losses (non-cash); charges related to restructuring plans; charges and credits associated with acquisitions and divestitures; gains associated with divestitures; asset impairment charges (non-cash); product recall-related impact; pension and retiree medical-related amounts, including all settlement and curtailment gains and losses; charges or adjustments related to the enactment of new laws, rules or regulations, such as tax law changes; amounts related to the resolution of tax positions; tax benefits related to reorganizations of our operations; and debt redemptions, cash tender or exchange offers. See below for a description of adjustments to our GAAP financial measures included herein.

Non-GAAP information should be considered as supplemental in nature and is not meant to be considered in isolation or as a substitute for the related financial information prepared in accordance with GAAP. In addition, our non-GAAP financial measures may not be the same as or comparable to similar non-GAAP measures presented by other companies.

Glossary

We use the following definitions when referring to our non-GAAP financial measures:

Acquisitions and divestitures: mergers and acquisitions activity, as well as divestitures and other structural changes, including changes in ownership or control in consolidated subsidiaries and nonconsolidated equity investees.

Bottler case sales (BCS): Measure of physical beverage volume shipped to retailers and independent distributors from both PepsiCo and our independent bottlers.

Concentrate shipments and equivalents (CSE): Measure of our physical beverage volume shipments to independent bottlers.

Constant currency: 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.

Core: Core results are non-GAAP financial measures which exclude certain items from our financial results. For further information regarding these excluded items, refer to “Items Affecting Comparability” in “Item 2 – Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Q2 2026 Form 10-Q and in “Item 7 – Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our annual report on Form 10-K for the fiscal year ended December 27, 2025. For the periods presented, core results exclude the following items:

Mark-to-market net impact

Mark-to-market net gains and losses on commodity derivatives in corporate unallocated expenses. These gains and losses are subsequently reflected in segment results when the segments recognize the cost of the underlying commodity in operating profit.

Restructuring and impairment charges

Expenses related to the multi-year productivity plan publicly announced in 2019, which was expanded and extended through the end of 2030 to take advantage of additional opportunities within the initiatives of the plan.

Acquisition and divestiture-related charges/credits

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.

A - 5

Impairment and other charges

We recognized impairment charges as a result of our quantitative assessments of certain of our indefinite-lived intangible assets, related to the Rockstar and Be & Cheery brands.

Pension and retiree medical-related impact

Pension and retiree medical-related impact includes curtailment gains.

Effective net pricing: Reflects the year-over-year impact of discrete pricing actions, sales incentive activities and mix resulting from selling varying products in different package sizes and in different countries.

Free cash flow: Net cash from operating activities less capital spending, plus sales of property, plant and equipment. Since net capital spending (capital spending less cash proceeds from sales of property, plant and equipment) is essential to our product innovation initiatives and maintaining our operational capabilities, we believe that it is a recurring and necessary use of cash. As such, we believe investors should also consider net capital spending when evaluating our cash from operating activities. Free cash flow is used by us primarily for acquisitions and financing activities, including debt repayments, dividends and share repurchases. Free cash flow is not a measure of cash available for discretionary expenditures since we have certain non-discretionary obligations such as debt service that are not deducted from the measure.

Free cash flow conversion: Free cash flow divided by core net income attributable to PepsiCo.

Organic revenue performance: A measure that adjusts for the impacts of foreign exchange translation (on a constant currency basis, as defined above), acquisitions and divestitures, and every five or six years, the impact of an additional week of results. We also apply the constant currency calculation for our subsidiaries operating in highly inflationary economies. We believe organic revenue performance provides useful information in evaluating the results of our business because it adjusts for items that we believe are not indicative of ongoing performance or that we believe impact comparability with the prior year.

Our 2026 organic revenue performance guidance adjusts for the impacts of foreign exchange translation (on a constant currency basis, as defined above) and acquisitions and divestitures. Our 2026 core effective tax rate guidance, our 2026 core constant currency EPS growth guidance and our projected 2026 core net income attributable to PepsiCo (a component of free cash flow conversion ratio) exclude the mark-to-market net impact included in corporate unallocated expenses, restructuring and impairment charges and other items noted above. Our 2026 core constant currency EPS growth guidance also excludes the impact of foreign exchange translation. We are unable to reconcile our full year projected 2026 organic revenue growth to our full year projected 2026 reported net revenue growth because we are unable to predict the 2026 impact of foreign exchange due to the unpredictability of future changes in foreign exchange rates and because we are unable to predict the occurrence or impact of any acquisitions and divestitures.

We are also not able to reconcile our full year projected 2026 core effective tax rate to our full year projected 2026 reported effective tax rate, our full year projected 2026 core constant currency EPS growth to our full year projected 2026 reported EPS growth and our full year projected 2026 core net income attributable to PepsiCo (a component of free cash flow conversion ratio) to our full year projected 2026 reported net income, because we are unable to predict the 2026 impact of foreign exchange or the mark-to-market net impact on commodity derivatives due to the unpredictability of future changes in foreign exchange rates and commodity prices. Therefore, we are unable to provide a reconciliation of these measures, without unreasonable effort.

A - 6

PepsiCo, Inc. and Subsidiaries

Reconciliation of GAAP and Non-GAAP Information

Organic Revenue Performance

(dollars in millions, unaudited)

PFNA

PBNA

IB Franchise

EMEA

LatAm Foods

Asia Pacific Foods

Total

Reported Net Revenue, GAAP measure

$

$

$

$

$

$

$

Impact of foreign exchange translation (a)

(4)

(4)

Impact of acquisitions and structural changes

—

—

—

—

—

Organic Revenue, non-GAAP measure (b)

$

$

$

$

$

$

$

Prior Year Reported Net Revenue, GAAP measure

$

$

$

$

$

$

$

Impact of divestitures

—

—

—

—

—

Prior Year Organic Revenue, non-GAAP measure (b)

$

$

$

$

$

$

$

Reported Net Revenue % Change, GAAP measure

(2)

7

6

Impact of foreign exchange translation

—

—

(2)

(3)

(3)

(2)

Impact of acquisitions and divestitures

—

(6)

—

—

—

—

(2)

Organic Revenue % Change, non-GAAP measure (c)

(2)

1

9

6

4

9

2

Impact on % Change of:

Organic volume change (d)

—

(2)

6

3

—

1

Effective net pricing

(2)

3

3

3

4

(1)

2

PFNA

PBNA

IB Franchise

EMEA

LatAm Foods

Asia Pacific Foods

Total

Reported Net Revenue, GAAP measure

$

$

$

$

$

$

$

Impact of foreign exchange translation (a)

Impact of acquisitions and structural changes

—

—

—

—

Organic Revenue, non-GAAP measure (b)

$

$

$

$

$

$

$

Prior Year Reported Net Revenue, GAAP measure

$

$

$

$

$

$

$

Impact of divestitures

—

—

—

—

—

Prior Year Organic Revenue, non-GAAP measure (b)

$

$

$

$

$

$

$

Reported Net Revenue % Change, GAAP measure

—

8

7

Impact of foreign exchange translation

—

—

(3)

(6)

(3)

(3)

Impact of acquisitions and divestitures

—

(6)

—

—

—

—

(2)

Organic Revenue % Change, non-GAAP measure (c)

1

8

6

4

8

Impact on % Change of:

Organic volume change (d)

1

(3)

3

4

(1)

1

Effective net pricing

(1)

4

5

2

5

2

(a)Represents the adjustment needed to reflect translation of revenue using prior-year period foreign currency exchange rates.

(b)Represents underlying amount, not in accordance with GAAP, used in the calculation of Organic Revenue Performance, which is a financial measure that is not in accordance with GAAP. See pages A-5 through A-6 for further discussion.

(c)A financial measure that is not in accordance with GAAP. See pages A-5 through A-6 for further discussion.

(d)Excludes the impact of acquisitions and divestitures. In certain instances, the impact of organic volume change on net revenue performance differs from the unit volume change disclosed in the Summary Second-Quarter 2026 Performance table and Summary Year-to-Date 2026 Performance table on pages 3 and 4, respectively, due to the impacts of product mix, nonconsolidated joint venture volume, and, for our franchise beverage businesses, temporary timing differences between BCS and CSE. We report net revenue from our franchise beverage businesses based on CSE. The volume sold by our nonconsolidated joint ventures has no direct impact on our net revenue.

Note – Amounts may not sum due to rounding.

A - 7

PepsiCo, Inc. and Subsidiaries

Reconciliation of GAAP and Non-GAAP Information (continued)

Certain Line Items by Segment

(dollars in millions, unaudited)

PFNA

PBNA

IB Franchise

EMEA

LatAm Foods

Asia Pacific Foods

Corporate Unallocated Expenses

Total

Reported Cost of Sales, GAAP measure

$

$

$

$

$

$

$

8

$

Mark-to-market net impact

—

—

—

—

—

—

(8)

(8)

Restructuring and impairment charges

(5)

—

—

(1)

7

—

—

1

Core Cost of Sales, non-GAAP measure (a)

$

$

$

$

$

$

$

—

$

Gross Margin

Reported Gross Profit, GAAP measure

$

$

$

$

$

$

$

(8)

$

%

Mark-to-market net impact

—

—

—

—

—

—

8

8

—

Restructuring and impairment charges

5

—

—

1

(7)

—

—

(1)

—

Core Gross Profit, non-GAAP measure (a)

$

$

$

$

$

$

$

—

$

%

Reported Selling, General and Administrative Expenses, GAAP measure

$

$

$

$

$

$

$

$

Mark-to-market net impact

—

—

—

—

—

—

Restructuring and impairment charges

(1)

(7)

Acquisition and divestiture-related charges/credits

(1)

—

—

—

—

—

Core Selling, General and Administrative Expenses, non-GAAP measure (a)

$

$

$

$

$

$

$

$

Operating Margin

Reported Operating Profit, GAAP measure

$

$

$

$

$

$

$

$

%

Mark-to-market net impact

—

—

—

—

—

—

Restructuring and impairment charges

1

4

7

Acquisition and divestiture-related charges/credits

1

—

—

—

—

—

Core Operating Profit, non-GAAP measure (a)

%

Impact of foreign exchange translation (b)

(1)

—

(3)

—

Core Constant Currency Operating Profit, non-GAAP measure (a)

$

$

$

$

$

$

$

$

Reported Operating Profit % Change, GAAP measure

n/m

n/m

Core Operating Profit % Change, non-GAAP measure (a)

(8)

—

4

Core Constant Currency Operating Profit % Change, non-GAAP measure (a)

(8)

—

1

1

(a)A financial measure that is not in accordance with GAAP. See pages A-5 through A-6 for further discussion.

(b)Represents the adjustment needed to reflect translation of operating profit using prior-year period foreign currency exchange rates.

n/m - Not meaningful due to the impact of prior-year impairment and other charges.

Note – Amounts may not sum due to rounding.

A - 8

PepsiCo, Inc. and Subsidiaries

Reconciliation of GAAP and Non-GAAP Information (continued)

Certain Line Items by Segment (continued)

(dollars in millions, unaudited)

PFNA

PBNA

IB Franchise

EMEA

LatAm Foods

Asia Pacific Foods

Corporate Unallocated Expenses

Total

Reported Cost of Sales, GAAP measure

$

$

$

$

$

$

$

2

$

Mark-to-market net impact

—

—

—

—

—

—

(2)

(2)

Restructuring and impairment charges

(7)

—

(3)

—

—

—

Core Cost of Sales, non-GAAP measure (a)

$

$

$

$

$

$

$

—

$

Gross Margin

Reported Gross Profit, GAAP measure

$

$

$

$

$

$

$

(2)

$

%

Mark-to-market net impact

—

—

—

—

—

—

2

2

—

Restructuring and impairment charges

7

—

3

—

—

—

Core Gross Profit, non-GAAP measure (a)

$

$

$

$

$

$

$

—

$

%

Reported Selling, General and Administrative Expenses, GAAP measure

$

$

$

$

$

$

$

$

Mark-to-market net impact

—

—

—

—

—

—

Restructuring and impairment charges

1

(3)

(3)

Acquisition and divestiture-related charges/credits

(6)

—

—

—

—

—

Core Selling, General and Administrative Expenses, non-GAAP measure (a)

$

$

$

$

$

$

$

$

Reported Impairment of Intangible Assets, GAAP measure

$

—

$

$

—

$

$

—

$

$

—

$

Impairment and other charges

—

—

—

—

Core Impairment of Intangible Assets, non-GAAP measure (a)

$

—

$

—

$

—

$

—

$

—

$

—

$

—

$

—

Operating Margin

Reported Operating Profit, GAAP measure

$

$

$

$

$

$

$

$

%

Mark-to-market net impact

—

—

—

—

—

—

Restructuring and impairment charges

3

3

Acquisition and divestiture-related charges/credits

6

—

—

—

—

—

Impairment and other charges

—

—

—

—

Core Operating Profit, non-GAAP measure (a)

$

$

$

$

$

$

$

$

%

(a)A financial measure that is not in accordance with GAAP. See pages A-5 through A-6 for further discussion.

Note – Amounts may not sum due to rounding.

A - 9

PepsiCo, Inc. and Subsidiaries

Reconciliation of GAAP and Non-GAAP Information (continued)

Certain Line Items by Segment (continued)

(dollars in millions, unaudited)

PFNA

PBNA

IB Franchise

EMEA

LatAm Foods

Asia Pacific Foods

Corporate Unallocated Expenses

Total

Reported Cost of Sales, GAAP measure

$

$

$

$

$

$

$

$

Mark-to-market net impact

—

—

—

—

—

—

Restructuring and impairment charges

1

—

(9)

7

—

—

Core Cost of Sales, non-GAAP measure (a)

$

$

$

$

$

$

$

—

$

Gross Margin

Reported Gross Profit, GAAP measure

$

$

$

$

$

$

$

$

%

Mark-to-market net impact

—

—

—

—

—

—

Restructuring and impairment charges

(1)

—

9

(7)

—

—

—

Core Gross Profit, non-GAAP measure (a)

$

$

$

$

$

$

$

—

$

%

Reported Selling, General and Administrative Expenses, GAAP measure

$

$

$

$

$

$

$

$

Mark-to-market net impact

—

—

—

—

—

—

Restructuring and impairment charges

(3)

(8)

(8)

Acquisition and divestiture-related charges/credits

(2)

—

—

—

—

—

Core Selling, General and Administrative Expenses, non-GAAP measure (a)

$

$

$

$

$

$

$

$

Operating Margin

Reported Operating Profit, GAAP measure

$

$

$

$

$

$

$

$

%

Mark-to-market net impact

—

—

—

—

—

—

Restructuring and impairment charges

2

8

7

8

Acquisition and divestiture-related charges/credits

2

—

—

—

—

—

Core Operating Profit, non-GAAP measure (a)

%

Impact of foreign exchange translation (b)

(5)

(3)

—

Core Constant Currency Operating Profit, non-GAAP measure (a)

$

$

$

$

$

$

$

$

Reported Operating Profit % Change, GAAP measure

(5)

n/m

Core Operating Profit % Change, non-GAAP measure (a)

(6)

3

2

6

Core Constant Currency Operating Profit % Change, non-GAAP measure (a)

(6)

3

2

3

(a)A financial measure that is not in accordance with GAAP. See pages A-5 through A-6 for further discussion.

(b)Represents the adjustment needed to reflect translation of operating profit using prior-year period foreign currency exchange rates.

n/m - Not meaningful due to the impact of prior-year impairment and other charges.

Note – Amounts may not sum due to rounding.

PepsiCo, Inc. and Subsidiaries

Reconciliation of GAAP and Non-GAAP Information (continued)

Certain Line Items by Segment (continued)

(dollars in millions, unaudited)

PFNA

PBNA

IB Franchise

EMEA

LatAm Foods

Asia Pacific Foods

Corporate Unallocated Expenses