PepsiCo's Ongoing North America Weakness Drives Guidance Cut, Says Analyst

PepsiCo Inc (NASDAQ: PEP) shares fell by 1.88% to $125.93 following a guidance cut for fiscal 2026 due to underperformance in North America, despite reporting upbeat third-quarter earnings. Analyst Robert Moskow reiterated a Hold rating with a price target of $133, highlighting that sales growth and productivity programs were insufficient to counter rising costs. Management indicated that Frito-Lay's net pricing would need to increase in fiscal 2027, with expectations of less than 1% price hikes, while commodity cost pressures are projected to continue, posing further challenges to earnings growth.