Global food, snack, and beverage company PepsiCo, Inc. (PEP - Free Report) is set to report third-quarter earnings results on Thursday before the opening bell. A Zacks Rank #4 (Sell) stock, PepsiCo surpassed earnings estimates in each of the past four quarters. With shares trading near a 52-week low, is the downside already baked in for PEP prior to next week’s release?
Analysts anticipate the company to post earnings of $2.29 per share, translating to a flat quarter versus the same period in the prior year. Estimates for the quarter have declined slightly over the past 60 days. Revenues are projected to increase 3.9% to $24.88 billion.
North American demand remains soft while pricing power is moderating. Higher input costs continue to pressure margins. Although productivity savings and tariff refunds should offset part of the pressure, PepsiCo intends to increase advertising, marketing and portfolio investments, which may limit near-term margin recovery.
The result is a stock down 7% in 2026, even as the broader market approaches new heights. Until the company can jumpstart its growth strategy, shares will likely continue to underperform.
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