PepsiCo beat Wall Street's third quarter expectations but lowered its profit outlook as it works to regain momentum in a cautious US market. The company posted revenue growth of 5.6% year over year to $25.27 billion, just above the roughly $25 billion analysts expected, while adjusted earnings came in at $2.34 per share versus the $2.29 expected, according to Bloomberg consensus data, and tariff refunds added $178 million in the quarter. For fiscal year 2026, PepsiCo now expects net revenue at the high end of its range, up approximately 6%, but it cut its forecast for core earnings per share growth to 2.5%-3.%, down from 5%-7%. CEO Ramon Laguarta said the company continues to operate with a high sense of urgency to sustainably improve financial and marketplace performance, most notably in North America, and that additional structural cost reduction actions are being identified and will be implemented in the coming months. The company also reiterated plans to raise prices this year by 15% to offset higher input costs, after earlier price cuts drove its North America core operating margin down by 280 basis points. The stock was little changed in premarket trading following the results.
PepsiCo IncPepsiCo beat Q3 revenue and EPS estimates but cut its FY2026 core EPS growth outlook to 2.5%-3% from 5%-7%.
