PepsiCo Lowers 2025 Profit Growth Outlook Due to Tariff Costs

PepsiCo shares fell after the company reported a rare miss on quarterly earnings and lowered its full-year outlook, citing increased supply chain costs due to tariffs and weakening consumer spending. The company now expects its core earnings per share to remain flat year-over-year, revising down from its previous projection of mid-single-digit growth. PepsiCo highlighted ongoing global trade friction, especially a 25% tariff on imported aluminum, as a significant factor impacting costs. Despite these challenges, PepsiCo plans to implement mitigation strategies to minimize operational disruptions and continues to expect modest organic revenue growth. The company also announced a 5% increase in its annual dividend, marking its 53rd consecutive year of dividend growth, demonstrating a continued commitment to shareholder returns amid challenging market conditions.