PepsiCo has presented its business and financial priorities to revitalize growth and improve profitability in 2026, outlining a path that focuses on innovation, productivity, and a more disciplined use of capital. The announcement follows a thorough strategic review overseen by the Board of Directors and constructive discussions with shareholder Elliott Investment Management, which expressed its full support for the new plan.
Chairman and CEO Ramon Laguarta outlined the company's objectives: accelerating organic revenue growth, achieving record productivity savings, and improving core operating margins. PepsiCo Foods North America will play a key role in increasing market competitiveness through more accessible pricing, line redesigns, and a more functional and clean product portfolio. Among the new announcements are the 2026 launch of Doritos Protein and the revamping of the Lay's, Tostitos, and Simply NKD brands.
On the efficiency front, PepsiCo highlights the closure of three plants, the rationalization of production lines, and a 20% reduction in SKUs in the United States by early 2026. The freed-up resources will be reinvested in marketing, advertising, and consumer value initiatives. An increase in in-store presence and a return to margin growth are expected as early as the first few months of 2026.
Preliminary guidance for 2026 calls for organic revenue growth of 2% to 4%, with an overall contribution to reported revenue of 4% to 6%, thanks in part to acquisitions and favorable foreign exchange effects. Core earnings per share are estimated to increase by 5% to 7%, up to 9% excluding the impact of the global minimum tax.
In parallel, the company will initiate a structural review of its supply chain and go-to-market models in North America, with a more comprehensive update expected by the end of 2026. On the financial front, PepsiCo confirms its capital allocation policy focused on strategic investments, strengthening free cash flow (expected conversion to 80% in 2026 and 90% in 2027), and increasing shareholder compensation through dividends and buybacks.
Finally, the Board of Directors' renewal process continues to strengthen the capabilities needed for the new phase of growth. PepsiCo also confirmed its financial forecast for fiscal 2025 and presented its upcoming schedule of meetings with analysts and investors, including the live Q&A on December 9th and participation in the CAGNY 2026 conference.
