Investors are encouraging PepsiCo (PEP 0.80%) to restructure the business to operate more efficiently.
PepsiCo (PEP) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.
PEP jumps after reporting strong Q3 results as pricing gains, global demand and innovation fuel bullish investor sentiment.
PepsiCo beat analyst estimates in the most recent quarter, with modest revenue growth but declining EPS and margin compression. Management guides for low single-digit revenue growth in 2025, emphasizing cost optimization and continued shareholder returns via dividends and buybacks. Dividend discount models suggest fair value between $104 and $155, with PEP appearing attractively priced versus industry peers, based on a set of price multiples.
PepsiCo remains a top 20 holding in my portfolio. The company's pipeline of product innovation and cost structure optimization are expected to return it to growth in 2026 and beyond. PEP's interest coverage ratio remains healthy.
Following its favorable Q3 results yesterday morning, Pepsi stock has now spiked +8%, rising as much as +6% in Friday's trading session.
PepsiCo, Inc. (NASDAQ:PEP ) Q3 2025 Earnings Call October 9, 2025 8:15 AM EDT Company Participants Ravi Pamnani - Senior Vice President of Investor Relations Ramon Laguarta - Chairman & CEO Jamie Caulfield - Executive VP & CFO Conference Call Participants Bonnie Herzog - Goldman Sachs Group, Inc., Research Division Dara Mohsenian - Morgan Stanley, Research Division Lauren Lieberman - Barclays Bank PLC, Research Division Stephen Robert Powers - Deutsche Bank AG, Research Division Filippo Falorni - Citigroup Inc., Research Division Michael Lavery - Piper Sandler & Co., Research Division Peter Grom - UBS Investment Bank, Research Division Andrea Teixeira - JPMorgan Chase & Co, Research Division Peter Galbo - BofA Securities, Research Division Robert Ottenstein - Evercore ISI Institutional Equities, Research Division Kaumil Gajrawala - Jefferies LLC, Research Division Christopher Carey - Wells Fargo Securities, LLC, Research Division Robert Moskow - TD Cowen, Research Division Presentation Operator Good morning, and welcome to PepsiCo's Third Quarter 2025 earnings question-and-answer session. [Operator Instructions] Today's call is being recorded and will be archived at www.pepsico.com.
PepsiCo's Q3 wasn't pretty – volumes fell and margins shrank – yet the stock is up. Something in these “bad” numbers may be quietly turning the tide. After lagging the market by 10 points in a quarter, PepsiCo trades at its lowest valuation in years. Yield, margins, and timing suddenly look interesting. Investors see a sleepy staple; insiders see value. PepsiCo's latest results might be setting the stage for a rerating that few expect.
PEP posts Q3 earnings and revenue beats as innovation and cost optimization fuel steady global growth despite margin pressure.
Major U.S. equities indexes pulled back Thursday after the S&P 500 and Nasdaq set fresh all-time highs. The Dow Jones Industrial Average, S&P 500, and Nasdaq all were lower at midday.
While the top- and bottom-line numbers for PepsiCo (PEP) give a sense of how the business performed in the quarter ended September 2025, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
PepsiCo Inc (NASDAQ:PEP, ETR:PEP) on Thursday reported better than expected financial results for its third quarter 2025, boosted by sales growth in international markets. The beverage and snacks giant's revenue for the quarter came in at $23.94 billion, edging past the $23.83 billion analyst consensus estimate based on a survey by LSEG.