PepsiCo reports Q3 growth but lowers full-year profit outlook
On October 8, 2026, PepsiCo reported third-quarter net revenue of $25,274 million, up 5.6%, and EPS of $2.23, up 17%. Organic revenue increased 3.1%, while operating profit rose 19% to $4,260 million. The company updated its fiscal 2026 guidance and said additional structural cost reductions will help fund investments as North American performance remains under pressure.
Why it matters
The guidance update changes expected fiscal 2026 earnings and revenue outcomes for investors. PepsiCo said planned cost reductions will fund growth investments and help offset rising input costs, while North American margin pressure is expected to continue in the fourth quarter.
Key facts
- 1PepsiCo reported third-quarter 2026 net revenue of $25,274 million versus $23,937 million a year earlier. marketscreener.com
- 2Third-quarter 2026 EPS was $2.23, compared with $1.90 in the prior-year quarter. marketscreener.com
- 3Third-quarter operating profit increased 19% to $4,260 million, and operating margin expanded 195 bps to 16.9%. marketscreener.com
- 4Organic revenue increased 3.1% in the quarter. marketscreener.com
- 5PepsiCo said additional structural cost reduction actions will be implemented in the coming months to fund investments and mitigate rising input cost inflation. marketscreener.com
Open questions
- Materials report conflicting fiscal 2026 core EPS growth outlooks, including 1% to 2% and 2.5% to 3.5%; other materials cite prior guidance of 4% to 6% or 5% to 7%.
- The materials differ on the precise fiscal 2026 revenue outlook, citing approximately 3% organic revenue growth and approximately 6% net revenue growth.
Summary written by AlphAI from 20 of 83 sources. Not investment advice. Figures are as stated by the linked sources.