PepsiCo cuts full-year guidance after Q3 earnings beat
PepsiCo reported third-quarter adjusted earnings of $2.34 a share on revenue of $25.27 billion, topping analyst estimates. The company also lowered its full-year earnings growth outlook to 2.5% to 3.5% from a prior low-end range of 5% to 7%.
By Evie Liu and George Glover PepsiCo stock was edging higher on Thursday as the snacks and soda maker's third-quarter earnings beat expectations, even as rising costs put its North American business under more pressure. 44 in early trading. S. pricing strategy.
27 billion. 96 billion. But that earnings beat was overshadowed by the company cutting its full-year guidance. 5%, having previously guided for growth at the low end of 5% to 7%.
CEO Ramon Lagurta said the results showed the "scale and resilience of the international business," but added that Pepsi was exploring ways to cut costs to help mitigate the impact of rising inflation. Higher prices have complicated Pepsi's efforts to turn its North American business around. Activist investor Elliott Management revealed a $4 billion stake last year, pushing for faster growth and stronger margins. Earlier this year, the company cut suggested retail prices for brands like Lay's and Doritos by as much as 15% in a bid to revive faltering demand.
It has also been pushing zero-sugar drinks and products with added protein and fiber, in a bid to adapt to consumers' changing preferences. But cost pressures have made that affordability push much harder. Pepsi is planning low- to mid-single-digit price increases on some snacks later this year or early in the new year, to keep pace with inflation. Shares haven't benefited from the confusion.
They're trading near to their lowest level since 2020, suggesting there's more work for Lagurta to do to show investors the turnaround is working. com This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal. (END) Dow Jones Newswires October 08, 2026 09:43 ET (13:43 GMT) Copyright (c) 2026 Dow Jones & Company, Inc.
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