Russia’s War in Ukraine Rippling Through U.S. Corporate Earnings

Major U.S. companies like McDonald’s Corp. and PepsiCo Inc. that exited or scaled back their business in Russia have just a few weeks to assess how economic sanctions and the Ukraine war will cascade through their first-quarter financial statements and potentially erode their earnings.

Corporate America’s sudden retreat from Russia and fallout from the war could render property and cash left behind worthless, wipe out long-term investments, and dent sales revenues.

The uncertainty over the war and ever-tightening sanctions is putting pressure on sensitive financial reporting decisions as the deadline to file first-quarter results approaches. Companies will have to quickly ...