PepsiCo: Q3 Revenue Rises 5.6% To $25.3 Billion As Company Updates 2026 Outlook

Delta Air Lines reported $2B in extra fuel costs, lowering its Q4 outlook. PepsiCo cut its full-year profit forecast due to inflation. Both cite rising costs from the Iran war, affecting profits. The S&P 500 is up 119% in its current cycle, but earnings pressures may impact valuations. Banks are next to report, with higher Treasury yields adding complexity.

PepsiCo (PEP) reported Q3 organic revenue growth of 3.1%, with international markets contributing significantly. Goldman Sachs cut its price target to $165 from $180, citing underwhelming outlook despite strong Q3 performance. Management highlighted cost pressures from inflation and maintained advertising spending. The company expects sequential improvement in Q4 and beyond.

PepsiCo (PEP) cut its 2026 profit outlook, citing slower-than-expected growth and margin improvement in North America. Q3 net revenue rose 5.6% to $25.27B, but North America remained weak. Shares rose 3.7% on cost-cutting plans. The company faces challenges balancing affordability, pricing, and product innovation amid shifting consumer habits. International markets showed stronger growth, with an 8% rise in organic sales.

PepsiCo (PEP) reported Q3 2026 revenue of $25.27B, up 5.6% YoY, but investors reacted negatively to management's revised guidance. The company trades at 15.28x earnings with a 4.61% yield, showing strong international growth and cash flow. Management is cutting costs and considering refranchising to boost margins.

Analysts at Evercore ISI maintained Buy ratings on Walmart (WMT) with a $125 target, and Hold on PepsiCo (PEP) with a $135 target. WMT has a Strong Buy consensus and 18% upside, while PEP has a Hold consensus and 15.4% upside, according to TipRanks.

PepsiCo will raise prices on snacks and drinks like Doritos due to higher costs, lowering its full-year earnings forecast to 2.5%-3.5% growth. Despite weaker North American sales, Q3 net income rose 17% to $3.07 billion, with revenue up 5.6% to $25.27 billion, driven by international markets. CEO Ramon Laguarta acknowledged struggles in the beverage business.