PepsiCo (PEP) Earnings Preview: What to Expect From Thursday’s Q3 Report
Shares are hovering near 52-week lows after two analyst downgrades in two days, with Wall Street watching for any sign that North American snack and beverage demand is stabilizing.
PepsiCo reports third-quarter 2026 results before market open on Thursday, October 8, with the financial release landing around 6:00 a.m. ET and a conference call with CEO Ramon Laguarta and CFO Steve Schmitt at 8:15 a.m. ET — both ahead of the opening bell. It’s the only S&P 100 company on the calendar this week; see the full list in our Corporate Earnings This Week tracker. The report carries extra weight with shares trading just above their 52-week low and down sharply from last year’s highs after two separate analyst downgrades landed within 48 hours of each other.
What to Watch
Consensus calls for adjusted EPS of roughly $2.30, essentially flat versus $2.29 a year ago, on revenue of about $25 billion, up roughly 4% from $23.9 billion in the prior-year quarter. That flat earnings picture matters: analysts broadly expect tariff-refund benefits and productivity savings to offset weak underlying organic demand rather than genuine acceleration. The central storyline remains North America, where PepsiCo’s snack and beverage recovery largely stalled after the first quarter, forcing heavier reliance on cost cuts to hit guidance, while input costs are expected to eat into some of those savings. Watch for commentary on shelf-space wins from recent price cuts and promotional activity, the pace of international growth (which has been a relative bright spot), and any update to full-year guidance given the stock’s slide into the print.
Analyst Estimates and Price Targets
Two downgrades hit the stock in quick succession heading into earnings. Deutsche Bank’s Steve Powers cut PepsiCo to Hold from Buy on September 28, lowering his price target to $138 from $155, arguing that the company’s “affordability and innovation initiatives appear largely in the market” with limited visibility into the next growth catalyst. JPMorgan’s Andrea Teixeira moved to Neutral the following day, also with a $138 target, pointing to the stalled North American snack recovery and the likelihood that higher costs offset some of the productivity gains management is counting on. Evercore ISI’s Robert Ottenstein maintained an In Line rating but trimmed his target to $135 from $150, saying the quarter itself “looks fine” but flagging downside risk to fiscal 2027 estimates from margin pressure. Across the broader analyst base, the consensus sits at Hold (roughly 4 Buy and 12 Hold ratings), with an average price target of $151.44 — about 20% above current levels — and a high target of $183, underscoring a real split between those who see the selloff as overdone and those who see further downside.
The stock’s 52-week range of $125.16 to $171.48 shows how far shares have fallen, and the current 4.70% dividend yield partly reflects the depressed price rather than payout growth alone.
Why It Matters
PepsiCo’s print is a read on the health of U.S. consumer-staples demand at a moment when yields and oil prices are both elevated and squeezing household budgets — the same backdrop we covered in our look at 10-year Treasury yields hitting a 24-year high. It’s also a useful contrast to Nike’s own consumer-demand struggles this quarter, another legacy consumer brand navigating a slow turnaround, and to the enterprise-spending signals in Accenture’s recent beat. For the full recap once results are out, and for coverage of other companies reporting this week, see our Earnings coverage and the Stock Fact Sheets hub.
This article is for informational purposes only and does not constitute investment advice. Analyst estimates and price targets are subject to change; consult a financial advisor before making investment decisions.
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