PepsiCo reported third quarter 2026 results that exceeded analyst expectations on both the top and bottom lines, supported by a 3.1% increase in organic revenue. Despite the quarterly beat, management lowered its full-year 2026 core constant currency EPS growth outlook to a range of 1% to 2%, down from the previous expectation of approximately 4%. The company is initiating additional structural cost reductions to offset rising input cost inflation and fund North American innovation.
Key Highlights
- Organic revenue growth of 3.1% beat estimates of 2.8%, driven by an acceleration in organic volume growth across global segments.
- North American convenient foods showed sequential improvement with savory snacks volume growth, though this was partially offset by lower effective net pricing.
- International segments remained a primary growth engine, with Latin America and Asia Pacific reporting double-digit reported net revenue increases of 14% and 10%, respectively.
- Management narrowed full-year organic revenue guidance to approximately 3% from the previous 2% to 4% range.