PepsiCo Lowers 2026 Profit Forecast Amid Sluggish Demand
PepsiCo lowered its annual core profit forecast for fiscal 2026 due to weak North American demand and rising input costs.
PepsiCo, Inc. lowered its annual core profit forecast for fiscal 2026, citing rising input costs and sluggish demand for its beverages and snacks in North America. The company now expects core earnings per share, adjusted for currency fluctuations, to increase by 1% to 2%, a sharp decline from its previous projection of 4% to 6%.
Annual organic revenue is now projected to grow by approximately 3%, a slight shift from the previous estimate of 2% to 4%. To address the financial pressure from inflation and fund investments intended to accelerate organic revenue growth, the company plans to implement further structural cost reductions.
CEO Ramon Laguarta stated that these additional cost reduction actions are being identified and will be implemented in the coming months to mitigate the impacts of rising input cost inflation.
