PepsiCo (PEP) official guidance

The North America advertising and marketing expense is projected to increase in the second half versus prior year as an example, we're going to continue to play offense.

Also unique to Q3, we expect to have a higher tax rate year-over-year than what we've seen so far this year, so that should go into the math.

The refund claims on the tariffs paid last year will be about 1 full point of EPS growth for the year.

We do expect, like you said, about approximately 1 point of EPS benefit from tariff refund claims likely in the quarter.

We continue to have a line of sight to the low end of our long term, 4%-6%, in the second half of the year.

In addition, acquisitions, net of divestitures, that occurred in 2025 are expected to contribute 1 percentage point to reported net revenue growth in 2026.

Capital spending to be below 5 percent of net revenue;

Total cash returns to shareholders of approximately $8.9 billion, comprised of dividends of $7.9 billion and share repurchases of $1.0 billion.

A core annual effective tax rate of approximately 22 percent;

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

Core constant currency EPS to increase between 4 and 6 percent;

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.

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

Organic revenue to increase between 2 and 4 percent;

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

Total cash returns to shareholders of approximately $8.9 billion, comprised of dividends of $7.9 billion and share repurchases of $1.0 billion.

Total cash returns to shareholders of approximately $8.9 billion, comprised of dividends of $7.9 billion and share repurchases of $1.0 billion.

Our current assumptions is we continue to accelerate organic. First volume, we'll continue to grow volume, which is consumption units into the brands, consumption act. We'll continue to accelerate organic and reported revenue growth. Siete becomes organic as of next quarter, I think. Our intentions and how we're thinking about the balance of the year is growing our profit growth in North America Foods again.

Our current assumptions is we continue to accelerate organic. First volume, we'll continue to grow volume, which is consumption units into the brands, consumption act. We'll continue to accelerate organic and reported revenue growth. Siete becomes organic as of next quarter, I think. Our intentions and how we're thinking about the balance of the year is growing our profit growth in North America Foods again.

Our current assumptions is we continue to accelerate organic. First volume, we'll continue to grow volume, which is consumption units into the brands, consumption act. We'll continue to accelerate organic and reported revenue growth. Siete becomes organic as of next quarter, I think. Our intentions and how we're thinking about the balance of the year is growing our profit growth in North America Foods again.

Our expectation is to have positive volume growth ex case pack water in the coming quarters.

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

We plan to continue to improve the margin of the beverage business in North America and in direction to the target that we shared with you in the past. Now, especially on your specific question on energy, we're very happy with the way we're going to participate in that fast-growing profit pool of the category, which is energy.

We expect Frito-Lay to grow volume, net revenue, and operating margin this year.

But clearly, it is our food business that has been improving throughout the year, both volume and net revenue. December was better than October. We expect that, obviously, Q1 will be better than Q4 and so on.

We expect Frito-Lay to grow volume, net revenue, and operating margin this year.

But you should think about mid-single digit growth for our international business.

We talked about in our guidance from a sales growth standpoint that we expected sales to strengthen in the second half as more of our initiatives are put in place and gains traction, as well as we have Poppi and some other acquisitions from prior year moving into organic growth.

We'll be growing double-digit space in Frito-Lay from the March, April timeframe when most of our partners start changing their layout.

We expect Frito-Lay to grow volume, net revenue, and operating margin this year.

The assumptions and the guidance above imply net revenue growth within a range of 4 to 6 percent and core EPS growth of approximately 5 to 7 percent in fiscal 2026, or approximately 7 to 9 percent excluding the impact of global minimum tax regulations.

•Total cash returns to shareholders of approximately $8.6 billion, comprised of dividends of $7.6 billion and share repurchases of $1.0 billion;

•A core annual effective tax rate of approximately 20 percent;

The assumptions and the guidance above imply a 0.5 percent decline in core EPS in 2025 compared to 2024 core EPS of $8.16.

•Core constant currency EPS to be approximately even with the prior year;

We also expect a free cash flow conversion ratio of at least 80 percent in 2026 (which includes a final tax payment of nearly $1 billion related to the Tax Cuts and Jobs Act of 2017), and at least 90 percent in fiscal 2027.

With these savings and ongoing efforts to operate more efficiently, we expect PepsiCo to deliver at least 100 basis points of core operating margin expansion in aggregate over the next three fiscal years.

•A low-single-digit increase in organic revenue;

•Total cash returns to shareholders of approximately $8.6 billion, comprised of dividends of $7.6 billion and share repurchases of $1.0 billion;

•Total cash returns to shareholders of approximately $8.6 billion, comprised of dividends of $7.6 billion and share repurchases of $1.0 billion;

Subject to Board approval, we expect to increase annual cash returns to shareholders (which includes cash dividends and share repurchases) in 2026 and 2027.

We see already in Q4 an expansion of the margin again to complete a positive margin expansion for the full year.

Total company, Lauren, we see the margin improvement next year again, driven by the continuous acceleration of international.

We see already in Q4 an expansion of the margin again to complete a positive margin expansion for the full year.

We should be very close to flat this quarter in foods.

The good news, as I said, is that September was strong, and we feel good about the balance of the year going back to the mid to high mid-single digits for our international business.

For next year, we're assuming that Pepsi will continue to grow and we'll be able to add some new layers of growth with Mountain Dew, Baja Blast is a very solid platform, $1 billion in retail value when you include both our sales and Taco Bell sales.