PepsiCo will raise prices on snacks including Doritos and sodas after weak North American sales in Q3, citing rising costs for fuel, aluminum, and commodities. The company can no longer rely on tariff refunds to offset expenses. International operations performed strongly, but North American volumes declined as consumers remain price-sensitive following previous aggressive increases.
PepsiCo cut its 2026 forecast and announced additional cost-cutting measures as recovery in North America lags expectations due to weak demand, high input costs, and competition from weight-loss drugs. The company faces margin pressure despite beating Q3 revenue expectations, with beverage volumes down 2% and food volumes flat in its key market.
PepsiCo beat third-quarter earnings expectations with $25.27 billion in revenue and $2.34 adjusted EPS, but lowered its 2026 core earnings per share growth forecast to 2.5%-3% from 5%-7% as it works to stabilize its struggling North America business. The company plans to raise prices 15% to offset input costs and implement structural cost reductions while investing in innovation around healthier products.
PepsiCo beat quarterly earnings expectations on strong international growth but cut its full-year earnings forecast to 2.5-3.5% due to persistent struggles in North America, where beverage volume declined 2% and food volume remained flat. The company is pursuing innovation and marketing investments to reverse the domestic turnaround, which is progressing slower than anticipated.