PepsiCo cuts FY2026 earnings outlook amid North America weakness
PepsiCo lowered its fiscal 2026 earnings guidance after weaker‑than‑expected performance in North America. TD Cowen reiterated a Hold rating with a $133 price target and reduced its EPS growth estimate for 2026 to 2.5%, while UBS noted the company now expects core constant‑currency EPS growth of 1%‑2%. The firm still reported stronger‑than‑expected third‑quarter results, with organic sales growth of 3.1% and improved gross margins.
Why it matters
The guidance cut reduces earnings expectations for investors and may keep the stock under pressure, as analysts highlight a 28.5% valuation discount to peers. UBS suggests the stock could improve if North America consumption trends strengthen.
Key facts
- 1TD Cowen set a $133.00 price target for PepsiCo. investing.com
- 2TD Cowen lowered its EPS growth estimate for fiscal 2026 to 2.5%. investing.com
- 3PepsiCo reported third‑quarter organic sales growth of 3.1% and EPS of $2.34. investing.com
- 4UBS expects core constant‑currency EPS growth of 1% to 2% for fiscal 2026, down from 4%‑6% previously. finance.yahoo.com
- 5UBS said PepsiCo trades at a 28.5% discount to peers, versus a five‑year average discount of 3.9%. finance.yahoo.com
- 6PepsiCo now expects organic sales growth of 3% for fiscal 2026, versus a prior range of 2%‑4% and Street estimates of 2.6%. finance.yahoo.com
Summary written by AlphAI AI Desk from 3 of 3 sources. Not investment advice. Figures are as stated by the linked sources.