PepsiCo reported third-quarter 2026 results that beat Wall Street expectations, with revenue rising 5.6% year on year to $25.27 billion against analyst estimates of $24.96 billion, and non-GAAP profit of $2.34 per share coming in 1.9% above the consensus of $2.30. Operating margin expanded to 16.9% from 14.9% a year earlier, while organic revenue rose 3.1% and sales volumes were flat year on year, an improvement from a 3% decline in the same quarter last year. CEO Ramon Laguarta credited international markets, which now account for 45% of total profit year-to-date, as a big driver of the quarter, while management called the underperformance in U.S. carbonated soft drinks dissatisfying and said it is responding with increased brand investment. CFO Steve Schmitt said input costs are trending higher and mix has been a headwind, and management warned that rising commodity costs, the expiration of hedging benefits and tariff reversals will weigh on margins in the coming quarters, to be partly offset by productivity measures, automation and cost cuts. PepsiCo also cited recent tuck-in acquisitions including Siete and Poppi, a new marketing partnership with Publicis, and plans for portfolio rationalization and SKU optimization as it works to revive North American performance.
PepsiCo IncQ3 revenue of $25.27B and EPS of $2.34 beat estimates with operating margin expanding to 16.9%.
Publicis Groupe SA