Crude Oil Gains 5%; PepsiCo Posts Upbeat Q3 Earnings

PepsiCo (PEP) reported Q3 FY2026 earnings, beating EPS and revenue estimates but cutting Q4 guidance. International growth was strong, while North America snacks showed improvement. Soft drinks underperformed, and margins faced pressure. The stock rose 2.32% post-earnings but is down 11.63% YTD. Next catalysts include Q4 earnings and beverage strategy updates.

PepsiCo reduced its full-year core earnings growth forecast from 4-6% to 1-2%, citing weak North American performance. Q3 revenue grew 5.6%, but $178M in tariff refunds significantly boosted core operating profit. Operating margin contracted 35 basis points in Q3, moving away from a 100-basis-point expansion target. CEO Ramon Laguarta acknowledged underperformance and expects no near-term consumer improvement.

PepsiCo reported Q3 earnings exceeding estimates, with $25.2B revenue and $2.34 EPS. International growth was strong, but North America lagged. The company lowered its EPS forecast to 2.5%-3.5% due to cost pressures. Organic revenue grew 3.1%, with beverage and food volumes up 3% and 1%, respectively. Functional hydration and zero-sugar drinks drove sales.

PepsiCo (PEP) reported a 5.6% revenue increase in Q3, driven by international sales, but faced challenges in North America. The company lowered its profit guidance due to rising costs and inflation. PEP's dividend yield is 4.65%, with a payout ratio of 71%. The stock is modestly undervalued, with a GF Value of $164.71 vs. a market price of $124.88. Institutional investors show confidence, while insiders have been selling shares.

PepsiCo PEP reported Q3 revenue growth of 5.6% (3.1% organic) and a 3% rise in core operating profit, but North American food sales lagged. CEO Ramon Laguarta acknowledged dissatisfaction with North America's performance, citing consumer spending shifts and dietary changes. Analysts highlighted higher marketing costs and profitability challenges, particularly in PepsiCo Foods North America (PFNA).

PepsiCo reported a 2% decline in North American soft drink sales volumes in Q3, prompting a cut to its Q4 sales growth forecast. CEO Ramon Laguarta attributed the slowdown to consumers spending more carefully due to inflation and rising interest rates. The company plans to raise prices on chips and soda later this year and in early 2027. Shares of PepsiCo were up 0.9% on Thursday.