PepsiCo $PEP reported first-quarter adjusted EPS of $1.61, ahead of the $1.55 LSEG estimate cited by CNBC, and revenue of $19.44 billion versus $18.94 billion expected. Shares rose slightly in premarket trading after the release. The company’s first-quarter earnings release showed net revenue up 8.5%, organic revenue up 2.6%, reported EPS up 27% to $1.70, and core EPS up 9% to $1.61.

The improvement came from more than currency and portfolio effects. PepsiCo said organic revenue growth reflected effective net pricing and a slight contribution from organic volume growth. North American foods delivered volume growth after the company cut prices on Lay’s, Tostitos, Doritos and Cheetos by as much as 15% in February, according to CNBC. That is important because the snack business had been under pressure from consumers reacting to higher prices.

The mix was still uneven. CNBC reported that North American food volume grew 2%, while North American beverage volume fell 2.5%. PepsiCo is leaning on brand resets and product changes, including Gatorade, Pepsi Prebiotic, Starbucks Coffee & Protein, Doritos Protein and SunChips Fiber, to keep revenue growth from relying only on price. For staples investors, volume stabilization matters more than one quarter of currency benefit.

Management kept full-year 2026 guidance intact. CNBC reported that PepsiCo still expects organic revenue to rise 2%-4% and core constant-currency EPS to increase 4%-6%. The company also referenced a 4% increase in the annualized dividend per share beginning with the June 2026 payment, which would mark its 54th consecutive annual dividend increase.

The next watchpoint is whether North American food volume can stay positive after the initial price-cut response, and whether commodity hedging offsets fuel, packaging and ingredient volatility tied to the Middle East conflict. PepsiCo’s quarter did not remove consumer-staples margin risk, but it did show that targeted affordability moves can bring shoppers back without sacrificing the earnings beat.

Not investment advice. Verify all figures with primary sources before acting.

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PepsiCo $PEP revenue rises 8.5%; EPS $1.61 beats $1.55 estimate