The magnitude of the guidance reduction (core constant currency EPS growth halved from +4-6% to +1-2%) is the key negative surprise. Watch the Q3 2026 10-Q for segment-level margin detail and the Q4 2026 earnings call for specifics on the structural cost reduction plan. The dividend increase and $10B buyback authorization from February 2026 remain intact, providing a floor.
Price Chart
Executive Summary
PepsiCo reported Q3 2026 GAAP EPS of $2.23 (Core EPS $2.34, +2% YoY) on net revenue of $25.27B (+5.6% YoY). Organic revenue grew 3.1%, accelerating from prior quarters. However, the company meaningfully lowered its full-year 2026 guidance: core constant currency EPS growth was cut from +4-6% to just +1-2%, and core EPS growth from +5-7% to +2.5-3.5%, citing rising input cost inflation and the need for structural cost reductions in North America.
Key Financial Metrics
Key Facts
- Q3 2026 GAAP EPS $2.23 vs $1.90 YoY (+17%); Core EPS $2.34 vs $2.29 YoY (+2%)
- Q3 2026 net revenue $25.27B vs $23.94B YoY (+5.6%); organic revenue +3.1%
- Core constant currency EPS growth guidance slashed to +1-2% from prior +4-6%
- Core EPS growth guidance cut to +2.5-3.5% from prior low-end of +5-7%
- Organic revenue guidance narrowed to approximately +3% from prior +2-4% range
- Core operating margin contracted 35bps YoY in Q3 (16.9% vs 17.3%)
- PFNA (North America Foods) core operating profit declined 12% YoY on constant currency basis
- PBNA (North America Beverages) organic volume declined 3% in Q3
- CEO cited 'rising input cost inflation' and need for 'structural cost reduction actions' in North America
- Cash returns to shareholders maintained at $8.9B ($7.9B dividends + $1.0B buybacks)
Financial Impact
Guidance cut implies ~$0.30-0.40 lower full-year Core EPS vs prior expectations; $8.9B capital return unchanged
Risk Factors
- Continued North America volume declines (PBNA organic volume -3%)
- Rising commodity and input cost inflation pressuring margins further
- Execution risk on structural cost reduction plan in North America
- Foreign exchange headwinds (FX translation benefit guidance raised to +1.5% from +1%)
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000077476-26-000050 |
| Document: pep-20261008.htm | 0000077476-26-000050 |
| Document: 0000077476-26-000050-index-headers.html | 0000077476-26-000050 |
| Document: 0000077476-26-000050-index.html | 0000077476-26-000050 |
| Document: 0000077476-26-000050.txt | 0000077476-26-000050 |
| 8-K Data (Synthetic) | 0000077476-26-000050 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 20, 2026 7d ago | Institutional Cluster | $134.70 | awaiting T+5 | — | $133.50 (+0.89%) |
Oct 16, 2026 11d ago | 8-K | $133.57 $135.46 | ▲ +1.42% | ▲ +1.56% | $133.50 (−0.05%) |
Oct 16, 2026 11d ago | Insider Buy | $133.57 $135.46 | ▲ +1.42% | ▲ +1.56% | $133.50 (−0.05%) |
Oct 7, 2026 19d ago | 8-K | $128.34 $128.38 | ▼ −0.03% | ▼ −0.31% | $133.50 (−4.02%) |
Sep 28, 2026 29d ago | ANALYST-DOWNGRADE | $128.50 $125.65 | ▲ +2.22% | ▲ +3.42% | $133.50 (−3.89%) |
Sep 17, 2026 5w ago | 8-K | $129.69 $128.62 | ▼ −0.82% | ▼ −2.09% | $133.50 (+2.94%) |
Aug 25, 2026 9w ago | Press Release | $142.27 | awaiting T+5 | — | $133.50 (−6.16%) |
Jul 17, 2026 14w ago | Press Release | $135.46 $136.64 | ▲ +0.87% | ▲ +1.30% | $133.50 (−1.45%) |
Jul 10, 2026 15w ago | ANALYST-DOWNGRADE | $137.38 $139.43 | ▼ −1.49% | ▼ −2.05% | $133.50 (+2.82%) |
Jun 12, 2026 19w ago | ANALYST-UPGRADE | $144.27 $142.02 | ▼ −1.56% | ▼ −2.23% | $133.50 (−7.47%) |
US Market Status
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