- Price
- $123.73 → $125.97(+1.8%)
- Discount
- 26.8% → 25.5%(−1.3 pts)
- Next earnings
- 2027-01-08 → 2027-02-02
- Balance sheet
- Cash: $11.2B
Debt: $51.9B
Net debt: $40.7B
Interest cover: 15×
Undrawn credit line: $10.0B
Debt due within 12 months: $9.2B
Ratings: Moody's A1 (stable outlook), S&P A+ (stable outlook)
PepsiCo funds itself mostly with unsecured notes of the parent company in US dollars and euros, plus a large commercial paper program. The dividend takes most of the free cash flow, and lower 2026 earnings guidance leaves less room, so more weakness in North America would make PepsiCo borrow more or slow buybacks. It owns most of its North American bottling plants and trucks, so it needs more capital than a franchise model. At September 5, 2026, debt was $51.9 billion: $42.7 billion of long-term debt and $9.2 billion of short-term debt. The short-term debt included $4.8 billion of commercial paper. Cash and short-term investments were $11.2 billion, and 20% of the cash was in Russia. Net debt was about $40.7 billion, down from about $42.5 billion at June 13, 2026. In the first 36 weeks of 2026,Interest cover is operating profit of $11.5 billion coveredover net interest expense and other of $0.77 billion about 15 timesin the first 36 weeks of 2026. Moody's rates PepsiCo A1 and S&P rates it A+, both with a stable outlook. Two undrawn $5.0 billion revolving credit facilities back the commercial paper: one runs to May 2031 and one to May 2027. If a rating falls to A2 or A on credit watch, some derivative counterparties can ask for full collateral. In the first 36 weeks of 2026, free cash flow was about $5.9 billion, and PepsiCo paid $5.9 billion of dividends and $0.7 billion of buybacks. PepsiCo still plans to return about $8.9 billion in 2026: about $7.9 billion as dividends and $1.0 billion as buybacks. The dividend takes most of the free cash flow. Lower 2026 earnings guidance leaves less room, so more weakness in North America would make PepsiCo borrow more or slow buybacks.
As of 2026-09-05.
- Checkpoints
- Oct 8, 2026: Q3 2026 earnings: North America volume and margin. Failed. Watch: Flat or positive North America volume and core operating margin up year over year pass; another volume drop in snacks and drinks with margin down fails. Outcome: Snack volume grew 0.5%, but beverage volume fell 3%, core operating margin fell 35 basis points, and PepsiCo cut its 2026 EPS growth guidance to 1% to 2%.
Jan 8Feb 2, 2027 (estimate): Q4 2026 results and 2027 guidance. Pending. Watch: 2026 core constant currency EPS growth inside the new 1% to 2% guidance and a 2027 plan with margin growth pass; another guidance cut or a 2027 outlook that cuts margin targets fails.
Apr 2027 (estimate): Q1 2027 earnings: price increases versus volume. Pending. Watch: Price increases that hold North America volume steady pass; volume losses that cancel the price gains fail.