NASDAQ$PEP

PepsiCo · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

PepsiCo's Q1 2023 results showcased resilience and strong business momentum across categories and geographies.

PepsiCo reported strong first-quarter 2023 results, exceeding expectations. The company's organic revenue grew by 14.3%, and core EPS reached $1.50. Due to this strong start, PepsiCo raised its full-year guidance for organic revenue growth to 8% and core constant currency EPS growth to 9%.

  • PepsiCo's categories and geographies remained resilient during the first quarter.
  • Full-year 2023 organic revenue is now expected to increase 8 percent.
  • Core constant currency EPS is now expected to increase 9 percent for the full year 2023.
  • Investments in becoming a Faster, Stronger, and Better organization are laying the foundation for durable and sustainable growth.

Headline financials

Total Revenue

$17.8B

Previous: $16.2B+10.2%
EPS (adj)

$1.50

Previous: $1.29+16.3%
Organic revenue growth

14.3%

Previous: 13.7%+4.4%
Free Cash Flow

$1.93B

Previous: $4.26B-54.7%
Net Income

$1.93B

Previous: $4.26B-54.7%
Operating Income

$2.63B

Previous: $5.27B-50.1%
Gross Profit

$9.86B

Previous: $8.77B+12.4%
Cash & Equivalents

$4.77B

Previous: $6.56B-27.3%
Total Assets

$93B

Previous: $93B+0.1%
Stock-Based Comp

$93M

Previous: $81M+14.8%

Revenue & EPS history

PepsiCo · Revenue · Quarterly

$17.8B

Q1 2023+10.2%vs Q1 2022
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

PepsiCo · $24.2B total across 6 segments · Q2 2026

  • PepsiCo Beverages North America
    $7.24B
  • PepsiCo Foods North America
    $6.37B
  • Europe, Middle East and Africa
    $4.98B
  • Latin America Foods
    $2.94B
  • International Beverages Franchise
    $1.52B
  • Asia Pacific Foods
    $1.12B

Forward guidance

PepsiCo expects to deliver 8 percent organic revenue growth and 9 percent core constant currency EPS growth for fiscal year 2023.

Tailwinds

  • Core annual effective tax rate of 20 percent.
  • Total cash returns to shareholders of approximately $7.7 billion.
  • Dividends of $6.7 billion.
  • Share repurchases of $1.0 billion.
  • Core EPS of $7.27.

Headwinds

  • Approximate 2-percentage-point foreign exchange translation headwind to impact reported net revenue.
  • Approximate 2-percentage-point foreign exchange translation headwind to impact core EPS growth.
  • Unpredictability of future changes in foreign exchange rates.
  • Unpredictability of commodity prices.
  • Unable to reconcile full year projected 2023 organic revenue growth to full year projected 2023 reported net revenue growth.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

+0.7%

Avg return

Earnings day

+0.8%

Avg return

5 days after

+0.6%

Avg return

30 days after

64%

46 / 72 earnings

Positive

+7.4%

Q3 2022

Best reaction

-4.9%

Q1 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.3%+0.8%-4.2%
Q4 2025+4.9%+9.9%+3.5%
Q3 2025+4.0%+9.1%+3.0%
Q2 2025+1.6%-1.6%+3.8%
Q1 2025-4.9%-5.6%-9.1%
Q4 2024-4.5%-3.8%+2.9%
Q3 2024+3.2%+4.5%-1.9%
Q2 2024+1.7%+0.7%+5.4%
Q1 2024+0.5%-0.5%+1.6%
Q4 2023-1.9%-3.6%-6.2%
Q3 2023+0.8%-0.8%+3.0%
Q2 2023+2.8%+0.7%+0.5%
Q1 2023+1.6%+2.9%-0.9%
Q4 2022+2.9%+2.7%+0.5%
Q3 2022+7.4%+6.2%+9.5%
Q2 2022-0.2%+0.4%+2.7%
Q1 2022+0.6%-1.2%-2.1%
Q4 2021-2.0%-3.5%-10.6%
Q3 2021+3.2%+3.9%+9.4%
Q2 2021+3.4%+4.2%+3.7%
Q1 2021+1.4%+2.5%+3.2%
Q4 2020-2.8%-2.4%-3.4%
Q3 2020-0.4%-2.1%-3.8%
Q2 2020+0.8%+0.1%+2.5%
Q1 2020-0.8%-3.2%-1.6%
Q4 2019+0.6%-0.3%-12.8%
Q3 2019+4.7%+2.5%+2.2%
Q2 2019+1.4%+0.5%-2.3%
Q1 2019+3.8%+3.3%+6.6%
Q4 2018+3.0%+2.9%+2.7%
Q3 2018-2.9%-3.8%+0.7%
Q2 2018+4.4%+4.6%+5.5%
Q1 2018+0.6%-2.0%-0.8%
Q4 2017-2.5%-0.8%+0.1%
Q3 2017+1.2%+0.8%+1.0%
Q2 2017+0.4%+0.6%+1.8%
Q1 2017-1.3%-1.6%+3.3%
Q4 2016+1.1%+1.2%+4.2%
Q3 2016+1.3%-0.3%-0.3%
Q2 2016+2.2%+2.7%+2.6%
Q1 2016+0.5%
Q4 2015+0.9%
Q3 2015+2.8%
Q2 2015-0.1%
Q1 2015-2.2%
Q4 2014+2.3%
Q3 2014+0.8%
Q2 2014+3.1%
Q1 2014+1.3%
Q4 2013-4.2%
Q3 2013+2.5%
Q2 2013-0.8%
Q1 2013+5.0%
Q4 2012+3.0%
Q3 2012+0.7%
Q2 2012+3.5%
Q1 2012-0.9%
Q4 2011+0.0%
Q3 2011+2.3%
Q2 2011-4.0%
Q1 2011+1.4%
Q4 2010-2.4%
Q3 2010-3.5%
Q2 2010+3.1%
Q1 2009+0.4%
Q1 2010-0.4%
Q4 2007-1.4%
Q2 2009-1.4%
Q4 2009-1.4%
Q4 2008-0.9%
Q3 2008-0.9%
Q3 2009-0.9%

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