Operating Income
PepsiCo Operating Income decreased by 9.7% to $3.21B in Q1 2026 compared to the prior quarter. Year-over-year, this metric grew by 24.4%, from $2.58B to $3.21B. Over 4 years (FY 2021 to FY 2025), Operating Income shows relatively stable performance with a 0.7% CAGR. This decline may warrant attention — for this metric, higher values are generally preferred.
Analysis
How to read this metric
Higher operating income indicates strong operational efficiency and pricing power, while a decline suggests rising costs or weakening demand.
Detailed definition
Operating income is the profit realized from a company's core business operations after deducting all operating expenses...
Peer comparison
A standard benchmark for operational performance; peers are compared based on operating margin percentages.
operating_incomeHistorical Data
| Q2 '21 | Q3 '21 | Q4 '21 | Q1 '22 | Q2 '22 | Q3 '22 | Q4 '22 | Q1 '23 | Q2 '23 | Q3 '23 | Q4 '23 | Q1 '24 | Q2 '24 | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Value | $3.13B | $3.16B | $2.56B | $5.27B | $2.08B | $3.35B | $815.00M | $2.63B | $3.66B | $4.02B | $1.68B | $2.72B | $4.05B | $3.87B | $2.25B | $2.58B | $1.79B | $3.57B | $3.56B | $3.21B |
| QoQ Change | — | +1.0% | -18.9% | +105.6% | -60.6% | +61.4% | -75.7% | +222.6% | +39.2% | +9.7% | -58.1% | +61.4% | +49.0% | -4.3% | -41.9% | +14.8% | -30.7% | +99.5% | -0.3% | -9.7% |
| YoY Change | — | — | — | — | -33.6% | +6.1% | -68.2% | -50.1% | +76.2% | +19.7% | +106.5% | +3.3% | +10.6% | -3.6% | +33.7% | -4.9% | -55.8% | -7.8% | +58.1% | +24.4% |
Business Segments
| Segment | Q2 '24 | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 |
|---|---|---|---|---|---|---|---|---|
| PepsiCo Foods North America | — | — | — | $1.54B | $2.93B | $4.46B | — | $1.43B |
| PepsiCo Beverages North America | $1.50B | $2.41B | — | $460.00M | -$639.00M | $729.00M | $539.00M | $736.00M |
| Latin America Foods (Segment) | — | — | — | $344.00M | $877.00M | $1.30B | — | $428.00M |
| International Beverage Franchise | — | — | — | $277.00M | $812.00M | $1.25B | — | $321.00M |
| Europe, Middle East & Africa (Segment) | — | — | — | $220.00M | $590.00M | $1.31B | $0.00 | $278.00M |
| Asia Pacific Foods (Segment) | — | — | — | $160.00M | $170.00M | $321.00M | — | $217.00M |
| Africa Middle Eastand South Asia | $393.00M | $590.00M | — | — | — | — | — | — |
| Asia Pacific Australiaand New Zealandand China Region | $456.00M | $718.00M | — | — | — | — | — | — |
| Europe | $822.00M | $1.55B | — | — | — | — | — | — |
| Frito Lay North America | $3.15B | $4.67B | — | — | — | — | — | — |
| Latin America | $1.12B | $1.72B | — | — | — | — | — | — |
| Quaker Foods North America | $85.00M | $133.00M | $134.00M | — | — | — | — | — |
| Total | $4.05B | $3.87B | $2.25B | $2.58B | $1.79B | $3.57B | $3.56B | $3.21B |
Africa Middle Eastand South Asia, Asia Pacific Australiaand New Zealandand China Region, Europe, Frito Lay North America, Latin America, Quaker Foods North America were previously reported and have since been discontinued or reclassified. Only currently active segments are shown in the chart.
Operating Income at Other Companies
Frequently Asked Questions
- What is PepsiCo's operating income?
- PepsiCo (PEP) reported operating income of $3.21B in Q1 2026.
- How has PepsiCo's operating income changed year-over-year?
- PepsiCo's operating income increased by 24.4% year-over-year, from $2.58B to $3.21B.
- What is the long-term trend for PepsiCo's operating income?
- Over 4 years (2021 to 2025), PepsiCo's operating income has grown at a 0.7% compound annual growth rate (CAGR), from $11.16B to $11.50B.
- What does operating income mean?
- The profit a company makes from its core business operations before interest and taxes.