PepsiCo Cuts 2026 Outlook as North American Pressures Persist

PepsiCo lowered its 2026 core constant-currency earnings growth outlook to 1%-2%, as North American sales and margin challenges weighed on its performance. Its shares touched a 52-week low of $123.47 on Oct. 7.

As of Tuesday afternoon, the stock traded at $126.56, down 0.09% from the previous close. The article reported that PepsiCo’s shares were down 11.7% year to date, while the S&P 500 was up 13.9% over the same period.

In the third quarter, organic revenue declined slightly at PepsiCo Foods North America and fell modestly at PepsiCo Beverages North America. PepsiCo said lower organic volumes offset the benefits of pricing in its beverage business. Its core operating margin contracted 35 basis points.

The company lowered its earnings growth outlook from the previously projected low end of 4%-6%. Management said improving North American performance was taking longer than expected, and margin pressures were expected to continue into the fourth quarter.

The Zacks Consensus Estimate for PepsiCo’s 2026 and 2027 earnings per share fell 0.9% and 2%, respectively, in the seven days before the article. The source also noted international growth and productivity initiatives as positives, alongside ongoing operational challenges.