PepsiCo Cuts 2025 Profit Outlook Amid Global Trade Uncertainty

PepsiCo reported a rare earnings miss for the first quarter, prompting the company to lower its full-year profit outlook as it faces mounting challenges from volatile global trade policy, particularly the effects of tariffs, and weakening consumer sentiment. The company's CEO cited rising supply chain costs and subdued consumer conditions as major headwinds, with the core earnings per share now forecasted to decline by 3% instead of showing growth. Organic volumes in the convenient foods segment fell, and the company’s U.S. market share has been pressured by competition and softness in its snack division. Despite these challenges, PepsiCo maintained its organic revenue growth forecast and shareholder return targets. Investors and analysts are watching closely to see how PepsiCo and the broader packaged foods sector will adapt to higher import duties and regulatory changes, such as the U.S. food regulator's plan to phase out artificial colorants. PepsiCo shares have declined year-to-date, reflecting broader concerns about the sector’s outlook.