PepsiCo Beats Earnings Targets as North American Sales Stagnate

Adjusted earnings per share reached $2.34, topping the $2.29 consensus estimate from LSEG analysts. While net sales climbed 5.6%, the company’s organic revenue growth—a metric stripping out acquisitions and currency fluctuations—remained more modest at 3.1%. The contrast between global performance and domestic sluggishness prompted a downward revision to the company's annual profit guidance.

PepsiCo now expects core earnings per share to grow between 2.5% and 3.5% for the year, a sharp reduction from its prior projection of 5% to 7%. Net income attributable to the company rose to $3.05 billion for the quarter, up from $2.6 billion in the same period last year. Management’s updated forecast reflects a cautious transition into the final quarter of 2026, as the firm attempts to stabilize its primary North American business segment.