PREVIEW: PepsiCo's EPS seen flat, investors eye consumer spending

Coca-Cola

08/10/2026 10:00

Repeats BUZZ published on Wednesday with no changes
** PepsiCo PEP.O shares falling 1.4% on Weds to $124.02 ahead of qtrly results due before the bell on Thurs, as investors watch for signs of pressure from tighter consumer budgets
** Wall Street expects soda and snacks giant to post adj EPS of $2.29, unchanged vs a yr-ago, on ~4% yr/yr rise in Q3 rev to $24.96 bln, per LSEG data
** In its prior qtr, PEP beat rev estimates but warned of moderating performance in North America due to tightening consumer budgets
** Grappling with cost pressures and the threat of GLP-1 weight loss drugs, PEP is running out of time to deliver on growth and margin targets it set out after activist investor Elliott Management took a roughly $4 bln stake a yr ago
** PEP stock has dropped ~14% YTD, lagging ~8% rise in S&P 500 Soft Drinks & Non-alcoholic Beverages index .SPLRCBEVS and 6% gain in S&P 500 Consumer Staples .SPLRCS
** The stock recently traded at 14x forward earnings, below its five-yr avg of 21x
** Of 25 analysts, recommendation breakdown is 7 "strong buy" or "buy", 17 "hold" and 1 "sell"; median PT of $152 down from $170 on Jul 7
     

(Lance Tupper is a Reuters market analyst. The views expressed are his own)
((lance.tupper@tr.com 1-646-279-6380))