PepsiCo Tops Q3 Estimates on International Growth but Cuts Full-Year Profit Outlook

PepsiCo reported third-quarter results on Oct. 8 for the 12 weeks ended Sept. 5, with revenue and adjusted earnings above Wall Street expectations even as the company reduced its full-year profit outlook, according to Stocktwits summarizing the earnings release and company guidance.

The company posted net revenue of $25.27 billion, up 5.6 percent from a year earlier, and core earnings of $2.34 per share, compared with estimates near $2.30 per share on revenue near $24.95 billion, according to Stocktwits. Organic revenue growth was 3.1 percent for the quarter.

International strength, North America pressure

International operations were the stronger part of the quarter, with organic revenue growth of 8 percent for the international business, according to Stocktwits. In North America, management said it plans added investment in innovation and execution along with further cost-reduction steps. The chief financial officer said North American core operating margin is expected to remain under pressure in the fourth quarter, with the company looking to offset part of that pressure through productivity and cost discipline, according to Stocktwits.

Lower profit outlook for the year

PepsiCo cut its fiscal 2026 outlook for core earnings growth at constant currency to 1 to 2 percent, down from a prior view at the low end of 4 to 6 percent, according to Stocktwits. On a reported basis, core earnings growth is now expected at 2.5 to 3.5 percent, down from 5 to 7 percent previously. The company expects organic revenue growth of about 3 percent for the year and reported revenue growth of about 6 percent. Shares rose modestly in early Thursday trading after the report, according to Stocktwits.

Reporting based on coverage by Stocktwits.