PepsiCo, Inc. (NASDAQ: PEP) reported third-quarter 2026 net revenue of $25.3 billion, up 5.6% from the prior year, the company said October 8, 2026. PepsiCo also lowered its full-year core EPS growth outlook and narrowed its organic revenue growth guidance.
The results come as large food and beverage companies balance steady demand overseas against softer pricing power in North America, where shoppers have grown more selective about grocery spending.
#PepsiCo Posts Higher Revenue And Profit In The Quarter
Organic revenue, which excludes currency and acquisition effects, increased 3.1% in the quarter. PepsiCo said the gain reflected effective net pricing and a contribution from organic volume growth across its beverage and food businesses.
Operating profit rose 19% to $4.26 billion, with operating margin expanding 195 basis points to 16.9%. PepsiCo attributed the improvement partly to a favorable net impact from acquisition and divestiture-related items and gains on commodity derivatives.
Core operating profit, a non-GAAP measure, increased 3% to $4.28 billion, while core operating margin narrowed 35 basis points to 16.9%. Tariff refunds also contributed 4 percentage points to core operating profit growth. PepsiCo said productivity savings and pricing were offset by higher operating costs and increased advertising and marketing spending.
Diluted earnings per share rose 17% to $2.23, and core EPS increased 2% to $2.34. PepsiCo said both measures were driven primarily by operating profit growth.
#International Growth Offsets Pricing Pressure In North America
PepsiCo's North America convenient foods business reported improved revenue trends sequentially, helped by savory snacks volume growth and higher volume market share, though lower effective net pricing partly offset the gain.
The North America beverages business posted 5% net revenue growth, which PepsiCo attributed primarily to acquisitions completed in 2025.
PepsiCo said each of its international segments delivered strong net revenue growth in the quarter, aided by organic volume growth in Asia Pacific Foods, the International Beverages Franchise and Latin America Foods.
"Our third-quarter results featured strong net revenue growth, an acceleration in organic revenue growth with organic volume growth across both global beverages and convenient foods," Ramon Laguarta, Chairman and CEO, PepsiCo, said in the earnings release.
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#PepsiCo Cuts EPS Outlook and Narrows Revenue Guidance
PepsiCo now expects full-year organic revenue growth of approximately 3%, narrowed from a prior range of 2% to 4%. The company also set its net revenue growth outlook at approximately 6%, versus a prior range of 4% to 6%.
PepsiCo cut its core EPS growth guidance to a range of 2.5% to 3.5%, down from a prior outlook of low-end growth of 5% to 7%. It also lowered core constant currency EPS growth guidance to 1% to 2%, from a prior low-end range of 4% to 6%.
PepsiCo said it now expects a foreign exchange translation benefit of approximately 1.5% to net revenue and core EPS growth, up from approximately 1% previously, along with a net benefit from acquisitions of approximately 1.5% to net revenue growth, up from approximately 1%.
The company also lowered its core annual effective tax rate guidance to approximately 21%, from a prior estimate of approximately 22%.
PepsiCo left its targets for capital spending, free cash flow conversion and shareholder returns unchanged in the updated guidance, including planned cash returns to shareholders of $8.9 billion.
Guidance revisions of this kind are common among large consumer packaged-goods companies partway through the fiscal year, as currency movements, acquisition timing and cost trends shift from original assumptions.
PepsiCo said additional structural cost reduction actions are being identified and will be implemented in the coming months to help fund investment and mitigate rising input cost inflation. The company said its guidance assumes current foreign exchange rates, which it cannot predict.
Looking ahead, Laguarta said PepsiCo remains focused on building on the strength of its international business while improving performance in North America through investment in innovation, brand building and marketplace execution. He pointed to rising input costs and planned structural cost actions as key factors the company is managing against its revised full-year targets.