Beverage volume in North America is down 3% this year, and the company now expects earnings per share to grow 1% to 2% in 2026
PepsiCo, owner of the Pepsi, Mountain Dew and Poppi brands, released its third-quarter 2026 results on Thursday, October 8, for the period that ended September 5, and lowered its profit outlook for the year. Net revenue totaled US$25.27 billion, up 5.6% from the same period in 2025, and organic revenue, which excludes currency effects, grew 3.1%.
The weakness is in North American beverages. The PepsiCo Beverages North America division posted US$7.7 billion in revenue for the quarter, up 5%, but organic revenue was flat and beverage volume fell 2%. Year to date, volume is down 3%. According to Just Drinks, the division's revenue growth came mainly from acquisitions made last year, and its operating margin fell 0.15 percentage point, pressured by volume and channel mix and by higher advertising spending.
According to Bloomberg, in a story published in Brazil by InfoMoney, diet and flavored sodas performed better than traditional ones. Chief executive Ramon Laguarta put it this way:
We don't feel good about the beverage business.Ramon Laguarta, CEO of PepsiCo, according to Bloomberg
The company plans to increase investment in Poppi, Pepsi and Mountain Dew, according to Bloomberg.
PepsiCo now expects core constant-currency earnings per share to grow 1% to 2% in 2026. Previously, it expected the low end of a 4% to 6% range. For organic revenue, the projection is now growth of about 3%. In the release, Laguarta said the company is identifying further structural cost reductions, to be carried out in the coming months to fund investments and offset rising input costs.
Outside North America, the picture is different. International organic revenue rose 8%, the fastest growth since the first quarter of 2024, according to Just Drinks, and international beverage volume grew 5% in the quarter, according to the results. The shares rose 1.2% in New York on the day, but were down 14% for the year through the previous close, according to Bloomberg. The Bebidário catalog includes Pepsi and Pepsi Black.
Sources: PepsiCo (October 8, 2026), Just Drinks (October 8, 2026), InfoMoney/Bloomberg (October 8, 2026).
