With a market cap of $194.5 billion, PepsiCo, Inc. (PEP) is a global food and beverage company offering snacks, cereals, beverages, and dairy products under brands like Pepsi, Lay’s, and Quaker. It operates in North America, Latin America, Europe, Africa, the Middle East, South Asia, and the Asia Pacific.
The Purchase, New York-based company is scheduled to deliver its fiscal Q4 2025 results soon. Ahead of this event, analysts forecast PepsiCo to post an adjusted EPS of $2.24, up 14.3% from $1.96 in the year-ago quarter. It has exceeded Wall Street's earnings estimates in three of the last four quarters while missing on another occasion.
For fiscal 2025, analysts expect PEP to report an adjusted EPS of $8.12, a marginal decline from $8.16 in fiscal 2024. However, adjusted EPS is projected to rebound, growing 5.3% year-over-year to $8.55 in fiscal 2026.
Shares of PepsiCo have dropped 5.3% over the past 52 weeks, lagging behind both the S&P 500 Index's ($SPX) 16.9% increase and the State Street Consumer Staples Select Sector SPDR ETF’s (XLP) marginal decrease over the same period.
Shares of PepsiCo rose 4.2% on Oct. 9 as the company reported stronger-than-expected Q3 2025 results, with adjusted EPS of $2.29 and revenue of $23.94 billion. Strong performance in Europe, the Middle East, and Africa, with 9% reported revenue growth, along with 2% revenue growth in North America Beverages. Additionally, the company raised its core EPS guidance for 2025 to a 0.5% decline versus the prior 1.5% decline.
Analysts' consensus view on PEP stock is cautiously optimistic, with a "Moderate Buy" rating overall. Among 20 analysts covering the stock, seven recommend "Strong Buy," 12 suggest "Hold," and one has "Strong Sell." The average analyst price target for PepsiCo is $158.53, indicating a potential upside of 11.5% from the current levels.
