Food and beverage company PepsiCo (NASDAQ: PEP) will be reporting earnings this Thursday before the bell. Here’s what you need to know.
PepsiCo beat analysts’ revenue expectations by 1.7% last quarter, reporting revenues of $22.73 billion, flat year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and a decent beat of analysts’ revenue estimates.
Is PepsiCo a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting PepsiCo’s revenue to grow 2.3% year on year to $23.86 billion, improving from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $2.26 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. PepsiCo has missed Wall Street’s revenue estimates five times over the last two years.
Looking at PepsiCo’s peers in the consumer staples segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Constellation Brands’s revenues decreased 15% year on year, beating analysts’ expectations by 0.5%, and Lamb Weston reported flat revenue, topping estimates by 2.6%. Constellation Brands traded up 1% following the results while Lamb Weston was also up 11.4%.
Read our full analysis of Constellation Brands’s results here and Lamb Weston’s results here.
Questions about potential tariffs and corporate tax changes have caused much volatility in 2025. While some of the consumer staples stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 4.4% on average over the last month. PepsiCo’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $152 (compared to the current share price of $140.85).
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