PepsiCo Beats Q3 EPS but Slashes Core EPS Guidance to +2.5%–3.5%
PEP is trading near its 52-week low of $123.47 (2.0% above the low).
Summary
PepsiCo beat Q3 EPS estimates but cut full-year core EPS growth guidance to +2.5%–3.5% from the prior low-end of +5%–7%, citing input cost inflation and North America challenges.
Updates
· Dow Jones Newswires — PepsiCo's Q3 EPS of $2.23 beat consensus expectations, with revenue of $25.27 billion.
Key Events · Earnings and Guidance · PEP
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Q3 EPS Beat
Reported EPS of $2.23, up 17% year-over-year, exceeding consensus expectations. Net revenue rose 5.6% to $25.27B.
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Core EPS Guidance Cut
Full-year core constant currency EPS growth guidance lowered to +1% to +2% from the prior low-end of +4% to +6%. Core EPS guidance now +2.5% to +3.5%, down from low-end of +5% to +7%.
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Margin Pressure
Core operating margin contracted 35 basis points in Q3 to 16.9%, driven by higher operating costs and increased advertising and marketing expenses, partially offset by productivity savings and tariff refunds.
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North America Weakness
PFNA operating profit declined 13% in Q3, with lower effective net pricing offsetting savory snacks volume growth. Management cited urgency to improve North America performance.
Analysis · PEP · Manufacturing
PepsiCo delivered a headline EPS beat of $2.23 versus $1.90 a year ago, but the real story is the guidance cut. Core constant currency EPS growth is now expected at just +1% to +2%, down sharply from the prior low-end of +4% to +6%. Core EPS guidance fell to +2.5%–3.5% from the low-end of +5%–7%. Management cited rising input cost inflation and the need for additional structural cost reductions to fund investments aimed at accelerating organic revenue growth. The stock is trading near its 52-week low, and this guidance reduction confirms the market's concern about North American performance and margin pressure.
How filings like this one have moved
In the 30 days to Oct 8, 2026, 36.4% of the 1096 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.63%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, PEP was trading at $126.00 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $168.9B. The 52-week trading range was $123.47 to $171.48. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.