PepsiCo (PEP) Q3 2026 earnings

PepsiCo on Thursday reported quarterly earnings and revenue that topped analysts’ expectations, fueled by international growth as its North American business continues to lag.

With one quarter left in 2026, the company also lowered its forecast for its full-year earnings, as its struggles in its home market weigh on profits. Pepsi expects core earnings per share to increase 2.5% to 3.5%, down from its previous projection of the low end of a range from 5% to 7%. It also now expects net revenue growth of about 6%, on the high end of its prior outlook of a range of 4% to 6%.

Shares of Pepsi rose about 2% in morning trading.

Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG:

• Earnings per share: $2.34 adjusted vs. $2.29 expected
• Revenue: $25.27 billion vs. $24.96 billion expected

Pepsi reported fiscal third-quarter net income attributable to the company of $3.05 billion, or $2.23 per share, up from $2.6 billion, or $1.90 per share, a year earlier.

Excluding items, the company earned $2.34 per share.

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

The company reported volume growth of 3% for its beverages and 1% for its food for the quarter. Volume excludes pricing and currency fluctuations to reflect demand more accurately.

Pepsi’s international markets were once again the bright spot. The company’s international business has accounted for 41% of its net revenue so far this year, CEO Ramon Laguarta said in prepared remarks.

Pepsi saw volume growth in all but one of its international business units during the quarter. Only its convenient foods division in Europe, the Middle East and Africa reported declining volume, of 1%.

But in its home market, Pepsi once again struggled.

“Our business in North America performed below our expectations and represents a meaningful opportunity for improvement,” Laguarta said.

Its North American beverage unit saw volume shrink 2%, while its North American food division reported flat volume.

The turnaround of its domestic business is moving more slowly than expected, CFO Steve Schmitt said in prepared remarks. So far, the strategy to fix the struggling divisions has focused on innovation and the company’s advertising and marketing.

For its snacks, Pepsi has leaned into simpler ingredients, “alternative” oils and functional benefits, like protein and fiber.

In February, Pepsi lowered prices by as much as 15% on many of its snacks, including Lay’s and Doritos. The move followed weak U.S. performance by its snack brands as budget-conscious shoppers, facing higher prices across the grocery store, skipped the chips.

The bet has paid off for the company, Laguarta said on the company’s earnings conference call.

“We’re happy with the turnaround in the volume performance,” he said. “If you think about last year, that business was low single-digit negative volume…