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PepsiCo (PEP) guidance and outlook
PepsiCo (PEP) lowered its guidance on Oct 8, 2026: EPS +1% for FY2026; Revenue +1% for FY2026; Free cash flow +80% for FY2026; EPS $6.00 for FY2026. PepsiCo's 10-Q filed Oct 8, 2026 makes 16 forward-looking statements, 1 of them new and 1 no longer said since the filing before.
Guidance and outlook
Latest guidance
| Metric | Period | Range | Change |
|---|---|---|---|
| Revenue | FY2026 | +3% | new |
| EPS | FY2026 | +1% | lowered |
| Revenue | FY2026 | +1% | new |
| Free cash flow | FY2026 | +80% | new |
| EPS | FY2026 | $6.00 | reaffirmed |
From the earnings release filed Oct 8, 2026 (8-K on EDGAR).
Forward-looking statements, 10-Q filed Oct 8, 2026
- A number of our sales incentives, such as bottler funding to independent bottlers and customer volume rebates, are based on annual targets, and accruals are established during the year, as products are delivered, for the expected payout, which may occur after year end once reconciled and settled.
- For interim reporting, our policy is to allocate our forecasted full-year sales incentives for most of our programs to each of our interim reporting periods in the same year that benefits from the programs.
- The allocation methodology is based on our forecasted sales incentives for the full year and the proportion of each interim period’s actual gross revenue or volume, as applicable, to our forecasted annual gross revenue or volume, as applicable.
- Based on our review of the forecasts at each interim period, any changes in estimates and the related allocation of sales incentives are recognized beginning in the interim period that they are identified.
- In determining our quarterly provision for income taxes, we use an estimated annual effective tax rate which is based on our expected annual income, statutory tax rates and tax structure and transactions, including transfer pricing arrangements, available to us in the various jurisdictions in which we operate.
- We will continue to evaluate the nature and extent of the impact of these tariffs on our business, to identify actions to potentially mitigate, where possible, any unfavorable impacts on our business and to monitor the regulatory and administrative developments around the potential refund of tariffs previously paid and assess their impact on our future results.
- We expect continued scrutiny of certain ingredients and substances present in certain of our products and packaging.
- We will continue to monitor for additional changes to the legislation, which could further impact our income tax provision.
- We have seen and expect to continue to see a further shift to e-commerce, online-to-offline and other online purchasing by consumers.
- We have seen and expect to continue to see retailers and buying groups impact our ability to compete in these jurisdictions.
- As a result, we expect to incur pre-tax charges of approximately $6.15 billion, including cash expenditures of approximately $5.1 billion.
- new · For the remainder of 2026, we expect to incur pre-tax charges of approximately $500 million and cash expenditures of approximately $250 million.
PepsiCo's latest quarter
PepsiCo, Q3 2026: revenue $25.3B (+6% year over year), operating margin 16.9%, net earnings $3.1B, operating cash flow $5.6B. The chart follows the revenue to costs, profit and cash.
Questions
Did PepsiCo raise or lower its guidance?
PepsiCo (PEP) lowered its guidance on Oct 8, 2026: EPS +1% for FY2026; Revenue +1% for FY2026; Free cash flow +80% for FY2026; EPS $6.00 for FY2026.
What does PepsiCo expect?
For the remainder of 2026, we expect to incur pre-tax charges of approximately $500 million and cash expenditures of approximately $250 million.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.