PepsiCo (PEP) Q3 2026 Earnings
How Did PEP Stock React to Q3 2026 Earnings?
Did PEP Beat Earnings? Q3 2026 Results
Yes. PepsiCo reported Q3 2026 earnings of $2.34 a share on Oct 7, 2026, beating the $2.30 consensus estimate by 1.9%. Revenue was $25.3B against a $25.0B estimate.
PepsiCo delivered a solid beat to open its third-quarter 2026 earnings report, posting adjusted EPS of $2.34 against the $2.30 consensus estimate, a 1.90% positive surprise that marks the fourth consecutive quarter the company has cleared Wall Street's EPS bar. Revenue of $25.27 billion rose 5.6% year-over-year and edged past the $24.97 billion estimate by 1.21%, aided by a 1.7-percentage-point contribution from acquisitions and divestitures as well as a modest foreign exchange tailwind. The headline driver was strength across international segments, with EMEA and Asia Pacific each posting 9% organic revenue growth, helping offset continued softness in North American snacks, where PFNA's core operating profit fell 12%. Observers have noted PepsiCo's intensified price-pack and affordability strategy in North America as a key variable to watch for margin recovery. Looking ahead, the company narrowed its organic revenue growth guidance to approximately 3% for fiscal 2026 while lowering core EPS growth to a 2.5% to 3.5% range, reflecting rising input cost pressures that CEO Ramon Laguarta signaled would be addressed through structural cost reduction initiatives in coming months.
- Organic revenue growth of 3.1% driven by effective net pricing and organic volume growth
- Strong international business performance with organic volume growth across Asia Pacific Foods, IB Franchise, and LatAm Foods
- 4-percentage-point favorable impact of tariff refunds on core operating profit
- Productivity savings and effective net pricing offsetting operating cost increases
- 1.7-percentage-point net benefit from acquisitions and divestitures
- 0.7-percentage-point benefit from foreign exchange translation
- Savory snacks volume growth and volume market share improvement in North America convenient foods
“Our third-quarter results featured strong net revenue growth, an acceleration in organic revenue growth with organic volume growth across both global beverages and convenient foods. The results reflect the scale and resilience of the international business, the ongoing evolution of the global portfolio and an improved presence in underpenetrated channels and occasions.”
PepsiCo CEO, on the earnings call
What Is PepsiCo's Outlook?
PepsiCo updated its fiscal 2026 guidance: organic revenue growth of approximately +3% (narrowed from +2% to +4%); net revenue growth of approximately +6% (from +4% to +6%); foreign exchange translation contributing approximately +1.5% to net revenue and core EPS growth (from approximately +1%); acquisitions net of divestitures contributing approximately +1.5% to net revenue growth (from approximately +1%); core annual effective tax rate of approximately 21% (from approximately 22%); core constant currency EPS growth of +1% to +2% (lowered from the low end of +4% to +6%); core EPS growth of +2.5% to +3.5% (lowered from the low end of +5% to +7%); capital spending below 5% of net revenue; free cash flow conversion ratio of at least 80%; and cash returns to shareholders of $8.9 billion (dividends of $7.9 billion and share repurchases of $1.0 billion).
PEP YoY Financials
| Metric | Q3 2026 | Q3 2025 | Year over year |
|---|---|---|---|
| Revenue | $25.3B | $23.9B | +5.6% |
| Gross Profit | $13.8B | $12.8B | +7.3% |
| Operating Income | $4.3B | $3.6B | +19.4% |
| Net Income | $3.0B | $2.6B | +17.1% |
PEP Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.