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.