PepsiCo lowered its 2026 profit-growth outlook and announced additional cost reductions on October 8, after a quarterly earnings beat failed to offset weakening North American demand and a slower-than-expected turnaround.
The company said adjusted earnings per share are now expected to rise 2.5% to 3.5% this year, down from its previous forecast of growth at the low end of a 5% to 7% range. PepsiCo also raised its full-year revenue-growth outlook to about 6%, reflecting stronger international performance. For the fiscal third quarter, revenue increased 5.6% to $25.27 billion, while adjusted earnings reached $2.34 per share, surpassing analysts’ expectations of $24.96 billion in revenue and $2.29 per share.
Organic revenue grew 3.1%, but North American beverage volumes fell 2% and food volumes were flat. International markets remained the company’s strongest area, helping offset weaker results at home. PepsiCo said North America’s recovery is taking longer than planned and warned that regional operating margins will remain under pressure in the fourth quarter.
Chief Executive Ramon Laguarta said the company is identifying structural cost reductions, including tighter control of corporate and discretionary spending, to help finance brand investments and counter rising input costs. The move comes as PepsiCo faces inflation-weary consumers, higher production expenses and growing competition in the packaged-food sector.