PepsiCo reported better-than-expected third-quarter results on Thursday, with adjusted earnings of $2.34 per share topping the Zacks EPS Consensus of $2.29 and rising 2% year over year, while revenue climbed 5.6% to $25.27 billion against expectations of $24.87 billion. Consolidated organic revenue growth accelerated to 3.1%, helped by international operations where organic revenue rose 8%, though continued weakness in North American beverages and snacks and higher input costs weighed on profitability. More concerning for investors, PepsiCo lowered its projected 2026 core EPS growth to 2.5%-3.5% from a previous 5%-7% outlook, and management now anticipates organic revenue growth of roughly 3% as inflation and continued investment in its domestic businesses pressure margins. The reduced guidance underscores the gap with rival Coca-Cola, which raised its full-year guidance after its most recent quarter and expects approximately 5% organic revenue growth in 2026 with adjusted EPS up 9%-10%; Coca-Cola will release its own third-quarter report on Tuesday, Oct. 27. PepsiCo shares have fallen more than 10% year to date while Coca-Cola stock has climbed 25%, and PepsiCo now trades at 14X forward earnings versus 26X for Coca-Cola, with a dividend yield of 4.79% against Coca-Cola's 2.47%.
PepsiCo IncPepsiCo beat Q3 estimates but cut its 2026 core EPS growth outlook to 2.5%-3.5% from 5%-7% on inflation and margin pressure.
The Coca-Cola CompanyArticle notes Coca-Cola raised full-year guidance and expects ~5% organic revenue growth in 2026 with EPS up 9%-10%, outperforming PepsiCo.
Coca-Cola Europacific Partners PLC