PepsiCo has raised €1 billion ($1.12 billion) through a European bond offering, just one day after lowering its full-year 2026 profit growth forecast, highlighting the challenges facing the global food and beverage major as it navigates weaker performance in North America.
According to a Bloomberg report published on October 9, the company divided the offering into two tranches of €500 million each, with maturities of three and nine years. Deutsche Bank and HSBC managed the transaction.
The fundraising comes after PepsiCo lowered its forecast for full-year 2026 core earnings-per-share growth to 1%–2%, down from its earlier projection of 4%–6%. The company also indicated an organic revenue growth outlook of approximately 3%, reflecting a more cautious assessment of its business performance.
PepsiCo has been facing pressure across its North American snacks and beverages businesses, where subdued demand, price-sensitive consumers and rising operating costs have weighed on growth. According to Bloomberg, North American beverage volumes were down approximately 3% year to date as of the October 9 report.
Despite these challenges, PepsiCo reported higher revenue and profit in its latest quarter. For the third quarter of fiscal 2026, net revenue increased 5.6% year on year to $25.27 billion, while net income rose to approximately $3.05 billion from $2.60 billion a year earlier. Adjusted earnings per share stood at $2.34.
The company's decision to cut its annual outlook despite stronger quarterly results highlights the pressure on profitability as operating costs and changing consumer preferences affect performance across key markets.
The euro-denominated bond sale also reflects the importance of European capital markets as a funding source for US companies. The offering provides PepsiCo with access to investors across different maturities, although the company has not identified a specific use for the proceeds in the cited report.
For the broader fast-moving consumer goods (FMCG) industry, the development underscores the challenge of sustaining profitable growth while balancing pricing, product innovation and affordability. PepsiCo's ability to revive North American sales and manage costs will remain central to its performance as it works toward its revised full-year targets.