PepsiCo signals cost cuts as it lowers 2026 EPS forecast

PepsiCo signaled plans for structural cost reductions, including potential layoffs, as its core soda business struggles and inflation pressures snack operations. Company executives hinted at the measures on Thursday while discussing mixed third-quarter financial results.

The company stated in prepared remarks that it is identifying structural cost reduction actions to curtail discretionary expenditures and reduce redundancies. These initiatives include corporate cost cuts not tied directly to growth, which will begin taking effect in the coming months alongside existing productivity programs.

Alongside the cost plans, PepsiCo slashed its 2026 forecast for core earnings per share growth to a range of 2.5% to 3.5%, down from its previous expectation of 5% to 7%. Meanwhile, net revenue is expected to reach the high end of its guided range, rising approximately 6% on demand for zero-sugar drinks and healthier snacks.

PepsiCo shares rose 1% in premarket trading following the announcement. The stock has dropped 13% year to date, trailing a 23% gain for competitor Coca-Cola.