Pepsico Q2 2025 Earnings Preview: Wall Street eyes drop amid cost pressures, tariff headwinds

PepsiCo (NASDAQ:PEP) is scheduled to announce Q2 earnings results on Thursday, July 17th, before market open.

Wall Street, on average, expects the soda and snacks giant’s giant to post a quarterly EPS of $2.03 (-11.0% Y/Y) on revenue of $22.3B (-0.9% Y/Y).

In the first quarter, the Frito-Lay maker posted its first quarterly profit miss in at least five years. PepsiCo’s revenue fell 1.8% to $17.92B. Analysts on average had estimated $17.77B.

PepsiCo cut its annual profit forecast as the soda and snacks giant signaled higher production costs and subdued consumer spending due to the uncertainty fueled by U.S. President Donald Trump’s expansive tariffs. The company expects a foreign exchange translation headwind of about three percentage points to negatively impact reported net revenue and core EPS growth, compared with its previous expectation of a low-single-digit increase.

“A return to moderate volume growth, driven by international demand and expansion, productivity gains, and new sales strategies, should restore the company’s historical operating leverage,” pointed out a recent Seeking Alpha analysis.

Over the last 2 years, PEP has beaten EPS estimates 88% of the time and has beaten revenue estimates 50% of the time.

Over the last 3 months, EPS estimates have seen 0 upward revisions and 13 downward. Revenue estimates have seen 4 upward revisions and 6 downward.

Since the start of the year, PEP shares have fallen 11.4%, compared to the 5.7% rise in the broader S&P 500 index (SP500).

Both Seeking Alpha’s Quant and the Wall Street analysts recommended the stock as a Hold.

PEP shares were up 1% on Wednesday.