PepsiCo Reports Q3 Earnings Beat Despite Guidance Cut
PepsiCo reported better-than-expected results for its third quarter, with organic revenue growth of 3.1% and overall revenue rising to $25.3 billion—exceeding estimates by over $300 million. The company outperformed on both the top and bottom lines despite challenges in North America's snacks business due to inflationary pressures and consumer behavior shifts linked to GLP-1 drugs. The international segment showed strong performance with organic growth of 6% or more across all four regions, while core earnings per share rose slightly. However, management cut its full-year EPS guidance from a range of 5%-6% to 2.5%-3.5%, citing potential declines in the fourth quarter and ongoing cost pressures. Despite this cautionary note, investors responded positively, sending shares up by nearly 4%. CEO Ramon Laguarta acknowledged challenges in the U.S., particularly with soft drinks, but outlined plans for increased advertising spending and cost-cutting to drive long-term growth.
Tickers: $PEP
Topics: Earnings Management Guidance Revenue Growth Stock Performance
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