PepsiCo Q3 beats but cuts FY26 earnings guidance on North America weakness

Seekingalpha+1 · 5 hours ago
PepsiCo Q3 beats but cuts FY26 earnings guidance on North America weakness
  • Q3 2026 adjusted EPS was $2.34 vs $2.29 expected; revenue was $25.27B vs $24.96B expected.
  • Net sales rose 5.6% to $25.27B; organic revenue increased 3.1% in Q3 2026.
  • FY26 core EPS growth guidance was cut to 2.5-3.5% from the prior low end of 5-7%; net revenue growth is now projected at about 6%, the high end of the prior 4-6% range.
  • North America beverage volume shrank 2% and food volume was flat; international business accounted for 41% of net revenue and grew volume in all but one unit.
  • International markets, particularly LatAm Foods and Asia Pacific, continued to fuel global momentum in Q3.
  • PepsiCo plans cost reductions to fund investments in innovation and marketing; the North America turnaround is moving slower than expected.

Quotes

“Our business in North America performed below our expectations and represents a meaningful opportunity for improvement”— Ramon Laguarta
“The turnaround of its domestic business is moving more slowly than expected”— Steve Schmitt

Sources