---
title: "PepsiCo Reports Better-Than-Expected Quarterly Earnings and Revenue Despite North American Challenges"
url: https://noti.group/pepsico-reports-better-than-expected-quarterly-earnings-and-revenue/
language: en
publisher: "Noti Group"
section: "Business"
published: 2026-10-08T11:56:13.000Z
updated: 2026-10-08T17:06:27.403Z
id: 64a7eadf-702e-4474-b827-babc46d30b28
source: "CNBC https://www.cnbc.com/2026/10/08/pepsico-pep-q3-2026-earnings.html"
attribution: "Link to https://noti.group/pepsico-reports-better-than-expected-quarterly-earnings-and-revenue/ and name Noti Group when you quote or summarize this story."
---

# PepsiCo Reports Better-Than-Expected Quarterly Earnings and Revenue Despite North American Challenges

PepsiCo has reported better-than-expected quarterly earnings and revenue driven by strong international growth, but its North American business continues to underperform.

PepsiCo has reported better-than-expected quarterly earnings and revenue, driven by strong international growth. However, its North American business continues to underperform, hindering overall profits. The company's struggles in its home market are now affecting its full-year earnings forecast.

In a move that signals the ongoing challenges faced by PepsiCo in North America, the company has lowered its forecast for core earnings per share and net revenue growth. Specifically, it now expects core earnings per share to increase by 2.5% to 3.5%, down from its previous projection of the low end of a range from 5% to 7%. The revised forecast also includes a target of about 6% net revenue growth.

The company's North American business has been a source of concern for some time, and it appears that the turnaround process is taking longer than anticipated. As a result, PepsiCo's full-year earnings are being impacted by these struggles. Despite this setback, the company remains confident in its ability to drive growth through international expansion.

PepsiCo's shares rose about 2% in premarket trading following the release of its quarterly earnings report. The company will provide further insights into its performance and future prospects when PepsiCo CEO Ramon Laguarta joins CNBC TV for a live discussion at 10 a.m. ET today.

PepsiCo's quarterly earnings have revealed a mixed performance across its various business segments. The company's net sales rose 5.6% to $25.27 billion during the period, driven by growth in international markets.

However, organic revenue, which strips out factors such as acquisitions and foreign exchange fluctuations, increased only 3.1%. This suggests that the company's performance is still largely dependent on external factors rather than internal momentum. Volume growth was also uneven across different business units.

Pepsi reported a 3% rise in volume for its beverages segment, but only a 1% increase for its food division. The international markets remained a bright spot, accounting for 41% of the company's net revenue so far this year.

The North American market continues to pose challenges for PepsiCo, with its beverage unit experiencing a 2% decline in volume and its food division reporting flat sales.

The company's efforts to revamp its product offerings have not gone unnoticed, as it has introduced simpler ingredients, alternative oils, and functional benefits such as protein and fiber in its snack line.

PepsiCo executives point to green shoots of recovery within the company, particularly in its North American convenient foods business. Brands like Doritos and Quaker Oats are seeing organic revenue growth, and the beverage unit's focus on functional hydration, flavored soft drinks, energy drinks, and zero-sugar options is starting to pay off.

The company plans to implement cost-cutting measures by eliminating redundancies and reducing discretionary spending, with a focus on investing in innovation and marketing. This strategic shift aims to drive future growth despite ongoing challenges in the North American market.

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Source: [CNBC](https://www.cnbc.com/2026/10/08/pepsico-pep-q3-2026-earnings.html)  
Published by Noti Group: https://noti.group/pepsico-reports-better-than-expected-quarterly-earnings-and-revenue/