PepsiCo cuts earnings forecast as North American turnaround takes longer than expected
PepsiCo lowered its full-year earnings forecast due to a slower-than-expected turnaround in its North American business, driven by high input costs and sluggish demand for snacks and beverages. The company reported better-than-expected quarterly results, but warned that growth and margin recovery in North America would take longer than planned. PepsiCo will pursue additional cost cuts to offset weak demand.
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- ✓ PepsiCo's North American business continues to lag behind its international markets.
- ✓ PepsiCo warned that growth and margin recovery in its key North American market was taking longer than planned.
- ✓ The company will pursue additional cost cuts to offset sluggish demand for its snacks and beverages.
- ✓ PepsiCo's quarterly results were driven by international growth.
What changed
PepsiCo revised its earnings forecast downward, citing a prolonged recovery in its North American business.
Live updates
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PepsiCo cuts earnings forecast as North American turnaround lags
PepsiCo lowered its full-year earnings forecast due to a slower-than-expected turnaround in its North American business, driven by high input costs and sluggish demand for snacks and beverages. The company reported better-than-expected quarterly results, but warned that growth and margin recovery in North America would take longer than planned. PepsiCo will pursue additional cost cuts to offset weak demand.
Why it matters
The downgraded forecast reflects challenges in PepsiCo's largest market, where the company faces intense competition and changing consumer preferences. The company's international markets continue to show strong growth, but North America's struggles are impacting overall performance. This development raises concerns about PepsiCo's ability to meet its long-term targets.
What is confirmed
- PepsiCo's North American business continues to lag behind its international markets.
- PepsiCo warned that growth and margin recovery in its key North American market was taking longer than planned.
- The company will pursue additional cost cuts to offset sluggish demand for its snacks and beverages.
- PepsiCo's quarterly results were driven by international growth.
- The company slashed its core EPS growth outlook from a prior target of 5% to 7%.
Still unconfirmed
- PepsiCo is raising prices on some chips and drinks, including Doritos and sodas.
What to watch next
- PepsiCo's next earnings report
- the impact of GLP-1 threat on PepsiCo's business
- further updates on cost cuts and pricing strategies
confidence 85%Sources used for this update (17)
- CNBC — PepsiCo cuts earnings forecast as North American turnaround takes longer than expected
- Bloomberg.com — PepsiCo Lowers Guidance on Mounting Costs in North America
- Reuters — PepsiCo running out of time to meet Elliott-inspired targets as GLP-1 threat intensifies
- Yahoo Finance — PepsiCo's Next Earnings Report on Oct. 8 2026 Could Send the Stock Plunging. Here's Why.
- Barchart.com — Ahead of PepsiCo Earnings, Here's What Barchart Data Says Comes Next for PEP Stock
- Investing.com India — Why is PepsiCo stock climbing today? By Investing.com
- Yahoo Finance — These 7 snacks powered PepsiCo's Q3 earnings
- WSJ — PepsiCo Trims Outlook as North American Unit Underperforms
- nypost.com — PepsiCo to hike prices on Doritos, sodas -- reversing recent ...
- www.cnbc.com — PepsiCo (PEP) Q3 2026 earnings - CNBC
- www.bnnbloomberg.ca — PepsiCo cuts North American forecast
- www.esmmagazine.com — PepsiCo Cuts Forecast, Deepens Cost Cuts As North America Recovery Drags
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