PepsiCo slashed its 2026 forecast for core earnings per share growth to 2.5%-3.5%, down from 5%-7%, as it reported third-quarter results that beat estimates on sales and earnings. The company said net revenue will come in at the high end of its range, up approximately 6%, amid momentum in zero-sugar drinks and healthier snacks. Within the snacks business, permissible options — which approximate $3 billion in annual net revenue — including Baked, Simply, Sun Chips, Siete, Smartfood, PopCorners and Quaker Rice Cake offerings each delivered strong volume and net revenue growth in the quarter, with Sun Chips, at nearly $800 million in retail sales, remaining the number one permissible salty snack brand. PepsiCo said it will focus ahead on simpler ingredients, alternative oils and functional elements such as protein and fiber, citing examples including Doritos Protein, Quaker Protein Rice Crisps, PopCorners Protein, Sun Chips Fiber, Smartfood FiberPop, Doritos and Cheetos NKD, Baked made with olive oil and Miss Vickies made with avocado oil. Executives hinted at a good deal of layoffs, saying structural cost reduction actions that reduce redundancies and curtail discretionary expenditures are being identified, including reductions in corporate costs and other initiatives not directly tied to growth, to begin taking effect in the coming months. Shares rose 2% in premarket trading, and the stock is down 13% year to date compared to a 23% advance for rival Coca-Cola.
PepsiCo IncPepsiCo slashed its 2026 core EPS growth forecast to 2.5%-3.5% from 5%-7%.
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