Beverage and snack giant PepsiCo (PEP) has reported third-quarter 2026 financial results that surpassed Wall Street forecasts.
The maker of the Pepsi soft drink and Doritos chips announced earnings per share (EPS) of $2.34 U.S., which topped the $2.29 U.S. consensus expectation of analysts.
Revenue of $25.27 billion U.S. was ahead of the $24.96 billion U.S. that had been forecast on Wall Street. Sales were up 5.6% from a year earlier.
Management attributed the strong results to international sales growth as its North American business continues to struggle.
In all, PepsiCo reported volume growth of 3% for its beverages and 1% for its food during Q3. Volume excludes pricing and currency fluctuations.
Despite the strong third-quarter print, the company lowered its forecast for its full-year earnings, saying the U.S. market continues to weigh on profits as consumer spending remains weak.
Management said they now expect earnings per share to increase 2.5% to 3.5% for all of this year, down from a previous forecast of 5% to 7% growth.
Revenue growth is projected at 6%, the high end of its previous outlook of 4% to 6%.
“Our business in North America performed below our expectations and represents a meaningful opportunity for improvement,” said PepsiCo in its earnings release.
Its North America, beverage sales declined 2%, while the North American food division reported flat sales in the most recent quarter.
PepsiCo is undertaking a turnaround of its domestic U.S. business. The company has simplified the ingredients in its snacks, using alternative oils and more protein and fibre.
Its drink business continues to focus on flavored soft drinks, energy drinks, and zero-sugar options.
The North American beverage unit includes the Gatorade sports drink, while its food division contains Quaker Oats oatmeal products.
PEP stock has declined 11% over the past year to trade at $123.73 U.S. per share.
