PepsiCo Lowers 2026 Earnings Forecast Amid U.S. Struggles

PepsiCo (PEP) has adjusted its full-year earnings forecast for 2026 as its North American turnaround is progressing slower than anticipated. The company reported higher-than-expected quarterly earnings, with an adjusted earnings per share of $2.34 compared to the expected $2.29. Despite lagging performance in North America, PepsiCo benefited from strong international growth, which now accounts for 41% of its net revenue. The company saw a 3% volume growth in beverages and a 1% growth in food volume globally during the quarter.

The company revised its core earnings per share growth expectation to an increase of 2.5% to 3.5%, down from its previous forecast of 5% to 7%. Net revenue growth is now expected to be around 6%, at the high end of its previous 4% to 6% range. In North America, the beverage volume declined by 2%, while the food division reported flat volume. CEO Ramon Laguarta noted that North America represents a significant opportunity for improvement.

This matters to investors because PepsiCo's revised earnings forecast reflects challenges in its key North American market, which could impact overall profitability. However, the company's strong international performance may help offset some of these domestic challenges.