PepsiCo Lowers 2026 EPS Outlook as North America Pressures Margins

PepsiCo reduced its 2026 core EPS growth guidance to 2.5-3.5% from 5-7%, citing persistent North American margin pressures. Foods North America's operating margin fell 280 basis points while Beverages North America declined 15 basis points. International operations provided offset with 8% organic revenue growth and 105 basis points of margin expansion. The company is pursuing productivity initiatives and structural cost reductions to support earnings recovery.