European Investor
08 Oct 2026, 14:28
PepsiCo Stock Rises 2.2% After Q3 Revenue Growth and Updated 2026 Outlook
PepsiCo shares rose about 2.2% after the company reported third-quarter results showing stronger revenue growth, improving volumes and solid international performance.
Q3 net revenue increased 5.6% to $25.27 billion, while organic revenue grew 3.1%. Reported EPS rose 17% to $2.23, while core EPS increased 2% to $2.34. Operating profit climbed 19% to $4.26 billion, with reported operating margin expanding to 16.9% from 14.9%.
Underlying profitability was more mixed. Core operating profit increased 3%, but core operating margin contracted 35 basis points to 16.9%. PepsiCo said productivity savings, pricing and tariff refunds helped results, while higher operating costs and increased advertising and marketing spending created pressure.
International operations remained a major growth driver. Organic revenue increased 9% in EMEA and Asia Pacific Foods, 7% in International Beverages Franchise and 6% in Latin America Foods. North American beverage revenue rose 5%, although beverage volume declined 2%.
PepsiCo also updated its 2026 outlook. The company now expects organic revenue growth of approximately 3% and reported net revenue growth of around 6%. However, core constant-currency EPS growth is now expected at only 1% to 2%, while core EPS growth is projected at 2.5% to 3.5%.
The positive stock reaction suggests investors are focusing on improving organic growth, stronger volumes and international momentum, despite softer underlying margin trends and a more modest earnings-growth outlook.
PepsiCo shares rose about 2.2% after the company reported third-quarter results showing stronger revenue growth, improving volumes and solid international performance.
Q3 net revenue increased 5.6% to $25.27 billion, while organic revenue grew 3.1%. Reported EPS rose 17% to $2.23, while core EPS increased 2% to $2.34. Operating profit climbed 19% to $4.26 billion, with reported operating margin expanding to 16.9% from 14.9%.
Underlying profitability was more mixed. Core operating profit increased 3%, but core operating margin contracted 35 basis points to 16.9%. PepsiCo said productivity savings, pricing and tariff refunds helped results, while higher operating costs and increased advertising and marketing spending created pressure.
International operations remained a major growth driver. Organic revenue increased 9% in EMEA and Asia Pacific Foods, 7% in International Beverages Franchise and 6% in Latin America Foods. North American beverage revenue rose 5%, although beverage volume declined 2%.
PepsiCo also updated its 2026 outlook. The company now expects organic revenue growth of approximately 3% and reported net revenue growth of around 6%. However, core constant-currency EPS growth is now expected at only 1% to 2%, while core EPS growth is projected at 2.5% to 3.5%.
The positive stock reaction suggests investors are focusing on improving organic growth, stronger volumes and international momentum, despite softer underlying margin trends and a more modest earnings-growth outlook.
