PepsiCo on Thursday announced its third-quarter financial results, reporting revenue and earnings that surpassed analyst estimates. The company also adjusted its full-year earnings forecast, citing business performance in North America that was below its expectations.
According to the October 8 report, PepsiCo’s revenue for the third quarter reached $25.27 billion, a 5.6% increase from the same period last year. This figure exceeded the $24.96 billion expected by analysts surveyed by LSEG. Adjusted earnings per share were $2.34, compared to the anticipated $2.29.
The company reported a third-quarter net income of $3.05 billion, or $2.23 per share. This compares to $2.6 billion, or $1.90 per share, from the third quarter of the previous year.
Following the quarterly results, PepsiCo revised its financial outlook for the full 2026 fiscal year. The company now projects core earnings per share to increase by 2.5% to 3.5%, a reduction from its previous forecast of growth in the low end of a 5% to 7% range. Concurrently, PepsiCo raised its net revenue growth projection to approximately 6%, which is at the high end of its prior outlook of 4% to 6%.
In a statement with the earnings release, CEO Ramon Laguarta said the company’s international business has accounted for 41% of its net revenue year-to-date. The company reported that its international segments saw volume growth across nearly all units. The convenient foods division in Europe, the Middle East, and Africa was the only international unit to report a volume decline, at 1%.
In contrast, the company’s North American divisions showed different results. The North American beverage unit experienced a 2% volume decrease, while its North American food division reported flat volume.
“Our business in North America performed below our expectations and represents a meaningful opportunity for improvement,” Laguarta stated in prepared remarks.
Chief Financial Officer Steve Schmitt noted that changes in the domestic business are proceeding at a slower pace than the company had anticipated.
Company officials outlined strategies focused on innovation, advertising, and marketing. For its snack products, the company said it is focusing on simpler ingredients and products with added protein and fiber. Its beverage strategy will center on functional hydration, flavored soft drinks, energy drinks, and zero-sugar options.
Laguarta also stated that PepsiCo plans to implement cost reductions to minimize redundancies and discretionary spending. The funds from these measures are intended to be reinvested into marketing and innovation initiatives.
Following the earnings announcement, shares of PepsiCo declined less than 1% in premarket trading.
