PepsiCo trims 2026 core EPS outlook even as Q3 revenue climbs 5.6%

PepsiCo cut its full-year profit growth forecast on Thursday, saying it now expects core constant-currency earnings per share to rise just 1% to 2% in 2026, down from the low end of a 4% to 6% range it had targeted before. The cut came alongside a third quarter in which, the company said, organic revenue growth accelerated.

Net revenue rose 5.6% to $25.27 billion for the quarter, from $23.94 billion a year earlier, according to the company's earnings release. Organic revenue, which strips out currency and deal effects, grew 3.1%, with organic volume growth in both global beverages and convenient foods.

Reported EPS climbed 17% to $2.23. Core EPS, the company's adjusted measure, rose 2% to $2.34, and core constant-currency EPS grew 1.5%. Core operating margin narrowed 35 basis points to 16.9%, as operating cost increases and heavier advertising and marketing spending offset productivity savings, pricing and what PepsiCo said was a 4-percentage-point favorable impact from tariff refunds.

The updated outlook pulls in two directions. PepsiCo now sees net revenue up about 6%, compared with a prior 4% to 6% range, and organic revenue up about 3%. But core EPS growth is now forecast at 2.5% to 3.5%, down from the low end of 5% to 7%. Cash returns to shareholders are still planned at $8.9 billion, made up of $7.9 billion in dividends and $1.0 billion in buybacks.

Chairman and CEO Ramon Laguarta said the company is "acting with urgency" to improve performance in North America, and that "additional structural cost reduction actions are being identified and will be implemented in the coming months" to help fund investment and offset rising input cost inflation.

The split showed up by region. PepsiCo Foods North America's operating profit fell 13% on a reported basis, while the international segments each posted strong net revenue growth, according to the release.

By the numbers

• Q3 net revenue: $25.27 billion, up 5.6%
• Organic revenue growth: 3.1%
• EPS: $2.23 (up 17%); core EPS: $2.34 (up 2%)
• Core operating margin: 16.9%, down 35 basis points
• New 2026 core constant-currency EPS growth: 1% to 2% (was low end of 4% to 6%)
• Planned 2026 cash returns: $8.9 billion

Sources

1. PepsiCo, Inc., Form 8-K (Items 2.02, 9.01), dated October 8, 2026, accession 0000077476-26-000050
2. PepsiCo, Inc., Exhibit 99.1, "PepsiCo Reports Third-Quarter 2026 Results," dated October 8, 2026

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