PepsiCo (PEP) Q3 2026 earnings

Key Points:

• PepsiCo reported quarterly earnings and revenue that surpassed analysts' expectations, driven by strong international growth, while its North American business continued to underperform.
• The company lowered its full-year earnings forecast, now expecting core earnings per share to grow 2.5% to 3.5%, down from a previous 5% to 7% projection, but raised its net revenue growth outlook to about 6%.
• Third-quarter net income was $3.05 billion ($2.23 per share), up from $2.6 billion ($1.90 per share) a year earlier, with net sales rising 5.6% to $25.27 billion and organic revenue increasing 3.1%.
• International markets remain a key growth driver, accounting for 41% of net revenue, while North American beverage volume declined 2% and food volume remained flat, highlighting ongoing challenges in the domestic market.
• PepsiCo is focusing on innovation and marketing to revive its North American business, emphasizing simpler ingredients, functional benefits in snacks, and zero-sugar and hydration drinks, alongside planned cost reductions to fund these initiatives.