PepsiCo’s Quarterly Earnings Preview: What You Need to Know

With a market cap of $175.6 billion, PepsiCo, Inc. (PEP) is a global food and beverage giant whose portfolio spans both snacks and drinks. Its best-known brands include Pepsi, Lay’s, Doritos, Cheetos, Gatorade, Mountain Dew, Quaker, and SodaStream, giving the company exposure to a broad range of everyday consumer occasions.The Purchase, New York-based company operates in North America, Latin America, Europe, Africa, the Middle East, South Asia, and Asia Pacific.

The beverage titan is scheduled to deliver its fiscal Q3 2025 results before the market opens on Thursday, Oct. 8. Ahead of this event, analysts forecast PepsiCo to post an adjusted EPS of $2.30, up marginally from $2.29 in the year-ago quarter. It has exceeded Wall Street's earnings estimates in each of the last four quarters. 

For fiscal 2026, analysts expect PEP to report an adjusted EPS of $8.57, a 5.3% rise from $8.14 in fiscal 2025. Moreover, adjusted EPS is projected to improve 4.6% year over year to $8.96 in fiscal 2027.

Shares of PepsiCo have dropped 8.5% over the past 52 weeks, lagging behind both the S&P 500 Index's ($SPX) 15.7% increase and the State Street Consumer Staples Select Sector SPDR ETF’s (XLP) 5.5% increase over the same period.

PepsiCo’s market performance has lost some fizz over the past year as weaker consumer demand and sluggish sales growth weigh on the stock. Unit sales have declined over the past two years, while projected sales growth of just 3.3% over the next 12 months points to a relatively muted growth outlook. Meanwhile, EPS has grown by only about 5% annually over the past three years, trailing the broader sector and adding to the pressure on the shares.

The softness is also showing up across PepsiCo’s core businesses. In its recent second quarter, PepsiCo Foods North America (PFNA) saw organic sales decline 2% year over year, while PepsiCo Beverages North America (PBNA) managed just 1% growth. Both businesses came in below Street expectations, highlighting the challenge PepsiCo faces in reigniting demand across its massive snacks and beverages portfolio.

Analysts' consensus view on PEP stock is cautiously optimistic, with a "Moderate Buy" rating overall. Among 23 analysts covering the stock, six recommend "Strong Buy," 16 suggest "Hold," and one has "Strong Sell." The average analyst price target for PepsiCo is $152.32, indicating a potential upside of 18.5% from the current levels.

On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.