PepsiCo (PEP) is scheduled to report its results for the fourth quarter on Tuesday, before the market opens.
Wall Street expects the company to post EPS of about $2.24, implying a 14.3% rise on a revenue of $28.97B, up 4.3% year over year.
The beverage giant has seen heightened activity across strategy, products, costs, and governance. During the period, the company outlined plans to review its North America supply chain and cut costs following talks with activist investor Elliott Management. PepsiCo also announced new product initiatives, including preparations for a prebiotic drink launch, ambitions to scale Poppi into a billion-dollar brand, and broader innovation and cost priorities heading into 2026 amid a leadership transition.
The quarter was also marked by sustained investor, regulatory, and legal scrutiny. Elliott Management, which disclosed a multibillion-dollar stake, pushed for changes including cost reductions, portfolio actions, and a potential review of the company’s bottling operations, with reports later indicating the activist was close to a settlement with PepsiCo.
Separately, PepsiCo was named alongside Walmart in a proposed U.S. consumer class action alleging price-fixing and discriminatory pricing practices, which the company denied, while also resolving a lawsuit tied to Gatorade bar health claims.
Broader industry developments involved pricing pressure, private-label competition, sustainability and plastics-reduction commitments, artificial ingredient reformulation, and shifting consumer preferences toward functional and lower-sugar beverages.
According to Seeking Alpha’s Quant Rating system, PepsiCo is rated Hold. The company holds an A+ grade in profitability, while valuation and growth are both graded D+.
An analyst said PepsiCo’s more capital-intensive structure and higher leverage “bring into serious question the ability to continue expanding dividends at historical rates,” adding that Coca-Cola offers a more attractive setup due to its “capital-light, brand-focused model” that enables higher margins and dividend growth potential.
Over the past two years, the company has beaten EPS estimates 88% of the time and revenue estimates 50% of the time.
Over the last three months, earnings estimates have seen three upward and four downward revisions, while revenue estimates have also recorded three upward and four downward revisions.