PepsiCo Beats Estimates but Cuts Full-Year Earnings Outlook

PepsiCo posted third-quarter adjusted earnings of $2.34 per share, beating Wall Street's $2.29 estimate, but cut its full-year profit forecast as its North American business continues to lag. The company said international growth fueled the quarter's stronger-than-expected results.

Revenue reached $25.27 billion, ahead of the $24.96 billion analysts surveyed by LSEG expected. Net income attributable to PepsiCo came in at $3.05 billion, or $2.23 per share, up from $2.6 billion, or $1.90 per share, a year earlier.

With one quarter left in 2026, Pepsi now expects core earnings per share to increase 2.5% to 3.5% for the full year. That is down from its previous projection at the low end of a 5% to 7% range.

The company also revised its revenue outlook. Pepsi now projects net revenue growth of about 6%, the high end of its prior outlook of 4% to 6%.

What drove the earnings beat?

Net sales rose 5.6% to $25.27 billion in the quarter. Organic revenue, which strips out acquisitions, divestitures and foreign exchange, increased 3.1%.

International markets carried the growth. Pepsi said its North American business continues to lag, a drag that shaped the decision to lower the full-year earnings forecast even as the top-line outlook improved.

Excluding items, the company earned $2.34 per share — a nickel above the consensus estimate from LSEG's analyst survey.

What does the lowered forecast signal?

The split between the two outlooks tells the story. Pepsi raised its revenue guidance to the top of the prior range while cutting its profit growth outlook by more than half. That combination points to margin pressure concentrated in North America rather than a demand problem.

The company did not specify which North American segments drove the shortfall. It framed international momentum as the offset that kept quarterly results above expectations.

The numbers at a glance, versus LSEG consensus:

• Adjusted EPS: $2.34 reported vs. $2.29 expected
• Revenue: $25.27 billion reported vs. $24.96 billion expected
• Net income: $3.05 billion, up from $2.6 billion a year earlier
• Organic revenue growth: 3.1%
• Net sales growth: 5.6%

What comes next?

One quarter remains in PepsiCo's 2026 fiscal year. The company must now deliver on the high end of its revenue outlook while managing the earnings drag from North America. The final quarter will show whether international strength can continue to absorb the slack, or whether the profit gap widens further before the year closes.