PepsiCo Trims 2026 Profit Forecast as North America Remains Under Pressure
PepsiCo's third-quarter revenue increased 5.6% to $25.27 billion, and adjusted earnings of $2.34 per share topped estimates. The company still lowered its 2026 profit growth forecast as North American margins stayed under pressure from inflation and soft demand. International organic revenue grew 8%, and PepsiCo announced additional structural cost cuts.
PepsiCo’s quarter showed a split between sales and profit. Revenue climbed 5.6% to $25.27 billion, and adjusted EPS of $2.34 beat expectations. Organic revenue rose 3.1%, the best since late 2023, while international organic revenue grew 8%. Beverage volumes rose 3% and convenient foods volumes 1%.
North American foods remained the weak spot: core operating profit fell 12% and margin shrank 280 basis points. PepsiCo also booked $178 million in tariff refunds. It cut its 2026 core EPS growth outlook to 2.5%–3.5%, from the low end of 5%–7%, and announced more structural cost cuts.
PepsiCo’s weaker profit outlook and added cost cuts could affect employees, suppliers, and investors. Workers may face restructuring or reduced discretionary spending, while suppliers could see changed order patterns. Consumers may encounter changes to product innovation or promotional strategies if affordability pressure persists. Investors may weigh improving international sales against North American margin weakness. The outcome may shape how large food-and-beverage firms balance cost discipline with demand recovery.