PepsiCo cuts annual core profit forecast as higher costs hurt margins
PEP•PepsiCo cut its fiscal 2026 core earnings per share growth forecast to 1% to 2%, from the low end of its prior 4% to 6% outlook. It expects annual organic revenue to rise about 3%, versus its previous forecast of 2% to 4%.
1. Lower profit outlook
PepsiCo cut its annual core profit forecast as inflation-weary consumers pared spending on its snacks and beverages, particularly in North America, while higher input costs continued to pressure margins.
2. Updated forecasts
The company expects fiscal 2026 core earnings per share, adjusted for currency fluctuations, to rise 1% to 2%, compared with its prior forecast of growth at the low end of 4% to 6%. It expects annual organic revenue to rise about 3%, versus its previous forecast of 2% to 4%. Consumer packaged goods makers are also facing input cost pressures and cautious spending amid rising gas prices.
