PepsiCo reports Q3 earnings beat but cuts full-year profit guidance

PepsiCo reported third-quarter net revenue of $25.274 billion, a 5.6 percent increase from the previous year, exceeding Wall Street estimates. Organic revenue grew by 3.1 percent, driven by volume recovery in North American snacks and momentum in international markets. Earnings per share reached $2.23, a 17 percent increase, while core EPS rose to $2.34.

Despite the quarterly beat, the company lowered its full-year core EPS growth guidance to the low end of 5 percent to 7 percent, down from a previous range of 2.5 percent to 3.5 percent. This adjustment, alongside a reduction in core constant currency EPS outlook, reflects persistent margin pressure in North American operations. While revenue outlook was slightly nudged upward, the guidance shift suggests cost challenges rather than demand issues. International operations now account for 45 percent of year-to-date profit.