PEP beats Q3 (core EPS $2.34, revenue $25.27B) but cuts FY core EPS growth to +2.5–3.5% — PFNA profit -12%

[LondonNewsTrader]

PepsiCo put out Q3 (quarter ended Sept 5) around 6am ET. Analyst Q&A is at 8:15 ET. The headline beat, but the EPS guide got reset lower.

The numbers:
- Core EPS $2.34 vs ~$2.30 consensus (last year $2.29). Reported EPS $2.23.
- Net revenue $25.27B (+5.6%) vs ~$24.98B expected. Organic revenue +3.1%, faster than the ~2.5% first-half pace.
- Volume: convenient foods +1%, beverages +3% overall. North America snacks gained volume and share, but net pricing was lower, so PFNA organic revenue was flat.
- Weak spot: PFNA operating profit fell 12% in constant currency. Core operating margin was down 35 bps, and that's with a ~4-point tailwind from tariff refunds.
- FY guide: organic revenue now ~+3% (was +2–4%), net revenue ~+6%. But core constant-currency EPS growth is cut to +1–2% (was "low end of +4–6%") and core EPS to +2.5–3.5% (was "low end of +5–7%"). Cash returns unchanged at $8.9B.
- Laguarta says more structural cost cuts are coming in the next few months to fund North America investment and offset input-cost inflation.

Context: PEP closed at $123.73 on Wednesday, a fresh 52-week low and the lowest level since 2020, so plenty of bad news was already priced in.

How I'd approach it:
- The tape has to choose between "top line is finally turning" and "EPS guide cut again". The 8:15 call matters: listen for 2027 commentary and how much pricing Frito-Lay is giving back.
- It's a mega-cap staple, so spreads are fine, but the first move after a call often reverses. I'd let the 9:30–9:45 range form before leaning either way. Wednesday's $123.47 low is the obvious reference.
- KO, MDLZ and KDP could trade in sympathy on the North America read.

Source (public): [PepsiCo Q3 2026 earnings release (PDF)](https://investors.pepsico.com/docs/peps ... elease.pdf)

Is this guide cut a kitchen-sink reset at the lows, or the start of another leg down? Anyone trading PEP or the staples this morning?