- PepsiCo revised its full-year core constant currency EPS forecast to an increase of 1% to 2%, down from the previous expectation of 4% to 6%.
- The company anticipates organic revenue growth of 3%, with earlier forecasts ranging from 2% to 4%.
- In the third quarter, PepsiCo’s core EPS was $2.34, surpassing both the previous year’s $2.29 and the estimated $2.29.
- Third-quarter EPS increased to $2.23 from $1.90 year-over-year.
- Operating profit rose by 19% year-over-year to $4.26 billion, higher than the projected $4.19 billion.
- Net revenue for the third quarter reached $25.27 billion, marking a 5.6% increase year-over-year and surpassing the estimated $24.95 billion.
- Revenue from North America’s food segment slightly decreased by 0.3% to $6.50 billion.
- Latin America’s food revenue surged by 14% to $3.02 billion.
- Generated $5.41 billion in revenue from Europe, the Middle East, and Africa, up 7.8% year-over-year.
- The International Beverages Franchise reported an 8.5% increase in revenue to $1.40 billion.
- PepsiCo Beverages North America’s revenue increased to $7.71 billion from $7.33 billion year-over-year.
- Revenue from the Asia Pacific region grew by 10% to $1.23 billion.
- Overall organic revenue increased by 3.1% compared to the previous year’s 1.3%, exceeding the estimated 2.64% growth.
- The organic revenue from PepsiCo Beverages North America showed no change, compared with an estimated increase of 1.43%.
- International Beverages Franchise’s organic revenue climbed by 7%.
- Foods North America’s organic revenue remained stable with no change.
- Organic revenue in Latin America increased by 6%.
- The Europe, Middle East, and Africa regions experienced organic revenue growth of 9%.
- The CEO highlighted the importance of strengthening the International business and improving performance in North America.
- Plans are underway to identify and implement additional structural cost reductions to support future investments.
- For 2026, PepsiCo sees organic revenue growth at about 3%, revising previous expectations of 2% to 4%.
- Projected core EPS for 2026 is now between 2.5% to 3.5%, down from an earlier projection of 5% to 7%.
Pepsico Inc on Smartkarma
Analysts on Smartkarma, such as Baptista Research and αSK Primers, have provided insightful coverage on PepsiCo Inc. Baptista Research delves into PepsiCo’s U.S. snack segment, highlighting its recent success in achieving nearly 7% revenue growth fueled by improvements in both foods and beverages globally. Particularly, the turnaround in the U.S. foods business, with a notable shift to positive volume and market share in salty snacks, stands out as a strategic win.
On the other hand, αSK Primers emphasize PepsiCo’s position as a diversified powerhouse with a balanced portfolio of snacks and beverages. Their analysis focuses on the company’s consistent delivery of shareholder returns, robust free cash flow generation, and strategic investments in innovation and international expansion. By capitalizing on trends like ‘Better for You’ products and growth in emerging markets, PepsiCo is primed for sustained long-term success.
A look at Pepsico Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Pepsico Inc shows a positive long-term outlook. With a strong Dividend score of 4, the company is likely to provide attractive returns to investors through steady dividend payments. This indicates financial stability and a commitment to rewarding shareholders over time.
While Pepsico Inc‘s Value score is moderate at 2, the company exhibits solid Growth, Resilience, and Momentum scores of 3. This suggests that Pepsico Inc has potential for future expansion, resilience in challenging market conditions, and maintained positive stock price trends. Overall, Pepsico Inc‘s diverse range of beverage, snack, and food products positions it well for continued success in the global market.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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