PepsiCo (NASDAQ:PEP) is scheduled to announce Q3 earnings results on Thursday, October 9th, before markets open.
Wall Street expects the company to post EPS of $2.26, while revenue is expected to rise 2% to $23.84B.
The beverage and snack giant is under pressure from Elliott Management to consider refranchising its bottling network, aiming to improve margins and streamline operations. However, some investors are cautious about the lengthy and costly separation process.
PepsiCo declared a quarterly dividend of $1.4225 per share, which was payable on September 30 to shareholders of record as of September 5.
However, the stock is down 2.22% over the past month and has fallen 7.75% year-to-date, driven by weaker beverage demand in North America and rising input costs that have pressured margins.
Earlier in August, the New York based company said that it expanded their partnership with Celsius Holdings (CELH). Celsius will now oversee PepsiCo’s U.S. energy drink portfolio, including Celsius, Alani Nu, and Rockstar. PepsiCo has invested $585 million, increasing its stake in Celsius to 11%.
Analyst Eugenio Catone pointed out that PepsiCo’s Q3 2025 earnings will be crucial, with attention on management’s response to Elliott Management’s proposals and progress in healthier product innovations. He added, “Pepsi is facing a tough period, and every quarterly report plays a crucial role in determining where it is heading.”
While current estimates suggest modest performance, PepsiCo has consistently exceeded expectations. Over the last 2 years, PEP has beaten EPS estimates 88% of the time and has beaten revenue estimates 50% of the time.
In the last 3 months, EPS estimates have seen 0 upward revisions and 14 downward. Revenue estimates have seen 10 upward revisions and 1 downward.