PepsiCo before the release of quarterly figures: Analysts are cautiously optimistic

PepsiCo, a giant in the manufacturing, marketing, and distribution of food and beverages, has a market capitalization of $191.6 billion. With well-known brands like Lay’s, Doritos, Gatorade, Pepsi-Cola, Quaker, and Tropicana, the company operates in seven business sectors and reaches customers worldwide through various distribution channels. Next Thursday, October 9, the company based in Purchase, New York, will release its Q3 2025 quarterly results before the stock market opens. Analysts expect an adjusted earnings per share (EPS) of $2.27, representing a 1.7% decline compared to the same quarter last year. In the last four quarters, PepsiCo has exceeded Wall Street expectations three times, with one miss. For the fiscal year 2025, analysts anticipate an adjusted EPS of $8.03, a 1.6% decline compared to 2024. However, a recovery is forecasted, with an increase in adjusted EPS by 5.7% to $8.49 in the fiscal year 2026. PepsiCo shares have declined by 17.2% over the past 52 weeks, underperforming both the S&P 500 Index, which increased by 15.6%, and the Consumer Staples Select Sector SPDR Fund, which fell by 5.9%. On July 17, PepsiCo shares rose by 7.5% after the company reported Q2 2025 revenue of $22.7 billion and an adjusted EPS of $2.12, exceeding expectations. Investors were encouraged by management’s plans to revive sluggish North American sales with new protein-rich snacks and beverages and the relaunch of core brands like Lay’s and Tostitos without artificial ingredients. The general analyst opinion on PepsiCo stock is moderately optimistic with a 'Moderate Buy' recommendation. Of the 21 analysts covering the stock, six recommend a 'Strong Buy,' 14 a 'Hold,' and one a 'Strong Sell.' The average analyst price target for PepsiCo is $153.05, indicating a potential upside of nearly 9% from the current level.