PepsiCo reported third-quarter earnings and revenue that surpassed Wall Street expectations on Thursday, though the multinational food and beverage giant reduced its full-year outlook due to persistent weakness in its North American operations.
Adjusted earnings per share came in at $2.34, beating the $2.29 consensus estimate from LSEG analysts. Net sales reached $25.27 billion, also exceeding the projected $24.96 billion. Organic revenue, which strips out the effects of acquisitions, divestitures and currency fluctuations, rose 3.1%.
Despite the beat, the company announced it would lower its full-year core earnings growth forecast. PepsiCo now expects earnings per share to increase between 2.5% and 3.5%, down from its previous guidance of 5% to 7%. Full-year net revenue growth is now projected at approximately 6%, while maintaining the high end of its prior range of 4% to 6%.
The results highlight a diverging trajectory for the company’s regional segments. While international markets continue to drive growth, Pepsi’s North American business remains a drag on overall performance, with the domestic turnaround progressing more slowly than management initially anticipated. With one quarter remaining in 2026, the company is working to rebuild momentum in its key home market.
For the reported quarter, net income attributable to PepsiCo was $3.05 billion, or $2.23 per share, compared to $2.6 billion, or $1.90 per share, during the same period last year.
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