PepsiCo reported third-quarter net revenue of $25.27 billion, up 5.6% YoY and exceeding the analyst consensus of $24.96 billion. Despite the top-line beat, the company lowered its fiscal 2026 earnings outlook due to persistent margin pressure in its North American operations.

PepsiCo earnings performance

Core earnings per share rose 2% to $2.34, topping the consensus estimate of $2.29. The divergence between strong global revenue growth and the reduced full-year guidance highlights a specific challenge in the company's largest market.

What the numbers show

The data reveals a disconnect between PepsiCo's global sales momentum and its profitability trajectory. While net revenue grew 5.6% YoY and core EPS increased 2%, the decision to lower the fiscal 2026 outlook indicates that margin compression in North America is outweighing volume or pricing gains elsewhere. This suggests that while demand remains robust enough to drive top-line growth, cost structures or competitive dynamics in the U.S. are eroding profit conversion rates.

Commodity and equity movements

Crude oil prices jumped 5.1% to $92.74, driving energy shares up 3%. Gold edged up 0.2% to $4,148.90, while silver fell 1.4% to $59.425 and copper declined 0.7% to $6.6015.

In equities, Pacira BioSciences shares rose 44% to $36.31 following an acquisition announcement by Viatris. Hallador Energy gained 7% to $14.58 after securing six-year capacity agreements with a utility. Helen of Troy Limited climbed 11% to $28.44 on better-than-expected adjusted EPS results.

Conversely, argenx SE dropped 12% to $817.39 after a Phase 3 study failure for one therapy candidate. Sunshine Biopharma Inc fell 37% to $0.44 after pricing a $6 million offering at $0.55 per unit. AngioDynamics, Inc. slid 19% to $11.53 following first-quarter results and a CEO appointment.

Global market snapshot

U.S. indices traded lower, with the Nasdaq Composite falling 0.61% to 27,371.84 and the S&P 500 dipping 0.37% to 7,772.65. The Dow Jones Industrial Average declined 0.39% to 50,978.59.

European markets were mostly lower, with Germany’s DAX falling 0.7% and France’s CAC 40 slipping 0.3%. Asian markets also closed down, led by Japan’s Nikkei 225 dropping 1.42% and India’s BSE Sensex declining 1.44%.

U.S. initial jobless claims fell by 2,000 to 197,000 in the week ending October 3, beating the market estimate of 200,000.

Major US indices split this week as the Nasdaq Composite and S&P 500 held onto gains, while the Dow Jones Industrial Average and Russell 2000 turned lower. Large-cap technology and biotech names carried the tape, contrasting with underperformance in smaller companies.

Index performance and volatility

The Nasdaq Composite closed at 27,475.93, down 0.45% on the day but up 1.05% for the week. The index traded as high as 27,722.75, matching its 52-week high, with support levels at 27,288.79 and 27,167.06. The RSI14 stood at 64.5, signaling proximity to overbought territory.

The S&P 500 added 0.92% for the week to close at 7,793.85, despite a daily decline of 0.32%. Resistance sits at its 52-week high of 7,844.52, with an RSI14 of 59.4. Conversely, the Dow slipped 0.06% for the week to 51,145.98, falling 0.73% on the day. Its RSI14 of 40.4 reflects relative weakness compared to tech-heavy indices.

The Russell 2000 posted the sharpest weekly decline, dropping 1.42% to 2,792.80. Small caps fell 1.32% on the day, with an RSI14 of 34.5 indicating potential oversold conditions relative to large caps.

Volatility metrics showed mixed signals. The VIX rose 0.32 on the day to 15.33 but declined 0.19 for the week. The Nasdaq-100 volatility gauge (VXN) increased to 21.45. In commodities, gold fell 1.25% to $4,134.90 per ounce, silver dropped 1.51% to $60.24, and WTI crude slipped to $88.89 per barrel. Natural gas jumped 3.82%, while the 10-year Treasury yield rose to 5.32%.

Corporate developments

RTX Corporation (NYSE: RTX) Raytheon, an RTX business, secured a five-year contract with two additional option years valued up to $24.4 billion for Standard Missile-6 (SM-6) interceptors. The deal aims to boost munition availability for offensive strikes and missile defense missions for the U.S. Navy. Phil Jasper, Raytheon President, stated the company is focused on meeting demand by investing in operations and facilities to remove constraints.

Eli Lilly and Company (NYSE: LLY) The U.S. FDA approved an additional indication for Jaypirca (pirtobrutinib) for adult patients with previously untreated chronic lymphocytic leukemia or small lymphocytic lymphoma without a known 17p deletion. This allows its use as a first-line treatment. The approval relies on the BRUIN CLL-313 trial, which showed significantly improved progression-free survival compared to bendamustine plus rituximab (HR=0.20; p<0.0001). Median PFS was not reached for pirtobrutinib versus 33.5 months for the comparator arm.

SAP SE (NYSE: SAP) SAP SE agreed to acquire TechWolf, an AI work intelligence platform provider. The deal is expected to close in Q4 2026, subject to regulatory approval, with terms undisclosed. TechWolf will remain an independent entity under CEO Andreas De Neve in Ghent. Manoj Swaminathan, SAP’s president and chief product officer, noted TechWolf’s context graph provides grounding for agent queries regarding skills planning.

International Business Machines Corporation (NYSE: IBM) Hagens Berman is investigating potential securities law violations by IBM following a July 14, 2026 preview of disastrous Q2 results that sent shares down 25%, erasing over $68 billion in market capitalization. On April 22, 2026, IBM reported Infrastructure revenue up 15%, but by July, total revenue growth slowed to 1% and Infrastructure revenue declined 7%. CEO Arvind Krishna cited shortfalls in Z performance and failed large deals.

Canadian National Railway Company (TSX: CNR) CN set a new quarterly record for grain movement, transporting 7.94 million metric tonnes from Western Canada in Q3, surpassing the previous record of 7.48 million metric tonnes set in 2020. The company attributed the performance to robust customer demand and consistent execution. CN will report Q3 financial results on October 30, 2026.

What the numbers show

The divergence between the Nasdaq’s 1.05% weekly gain and the Russell 2000’s 1.42% decline highlights a concentrated market leadership. While large-cap tech indices approached 52-week highs, small caps faced significant pressure, evidenced by the Russell 2000’s RSI14 dropping to 34.5. This spread suggests investor preference for established technology and biotech firms over broader economic proxies represented by smaller companies.