An Overview of PepsiCo's Earnings

PepsiCo (NASDAQ:PEP) is preparing to release its quarterly earnings on Thursday, 2025-10-09. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect PepsiCo to report an earnings per share (EPS) of $2.26.

Anticipation surrounds PepsiCo's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Earnings History Snapshot

Last quarter the company beat EPS by $0.09, which was followed by a 1.51% drop in the share price the next day.

Here's a look at PepsiCo's past performance and the resulting price change:

Performance of PepsiCo Shares

Shares of PepsiCo were trading at $140.79 as of October 07. Over the last 52-week period, shares are down 19.09%. Given that these returns are generally negative, long-term shareholders are likely bearish going into this earnings release.

Analysts' Perspectives on PepsiCo

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding PepsiCo.

Analysts have provided PepsiCo with 13 ratings, resulting in a consensus rating of Neutral. The average one-year price target stands at $151.46, suggesting a potential 7.58% upside.

Comparing Ratings with Competitors

The following analysis focuses on the analyst ratings and average 1-year price targets of Coca-Cola, Monster Beverage and Keurig Dr Pepper, three prominent industry players, providing insights into their relative performance expectations and market positioning.

• Analysts currently favor an Outperform trajectory for Coca-Cola, with an average 1-year price target of $80.2, suggesting a potential 43.04% downside.
• Analysts currently favor an Buy trajectory for Monster Beverage, with an average 1-year price target of $70.5, suggesting a potential 49.93% downside.
• Analysts currently favor an Buy trajectory for Keurig Dr Pepper, with an average 1-year price target of $33.67, suggesting a potential 76.08% downside.

Insights: Peer Analysis

The peer analysis summary provides a snapshot of key metrics for Coca-Cola, Monster Beverage and Keurig Dr Pepper, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.

Key Takeaway:

PepsiCo ranks first in gross profit among its peers. It is in the middle for consensus rating. PepsiCo is at the bottom for revenue growth and return on equity.

All You Need to Know About PepsiCo

PepsiCo is a global leader in snacks and beverages, owning well-known household brands including Pepsi, Mountain Dew, Gatorade, Lay's, Cheetos, and Doritos, among others. The company dominates the global savory snacks market and also ranks as the second-largest beverage provider in the world (behind Coca-Cola) with diversified exposure to carbonated soft drinks, or CSD, as well as water, sports, and energy drink offerings. Convenience foods account for approximately 55% of its total revenue, with beverages making up the rest. Pepsi owns the bulk of its manufacturing and distribution capacity in the US, but uses bottlers overseas for beverages. International markets made up 40% of both total sales and operating profits in 2024.

Breaking Down PepsiCo's Financial Performance

Market Capitalization: Surpassing industry standards, the company's market capitalization asserts its dominance in terms of size, suggesting a robust market position.

Positive Revenue Trend: Examining PepsiCo's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 1.0% as of 30 June, 2025, showcasing a substantial increase in top-line earnings. When compared to others in the Consumer Staples sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of 5.56%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): PepsiCo's ROE stands out, surpassing industry averages. With an impressive ROE of 6.86%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 1.22%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: PepsiCo's debt-to-equity ratio is notably higher than the industry average. With a ratio of 2.79, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

To track all earnings releases for PepsiCo visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.