PepsiCo, Inc. (NASDAQ:PEP), a global leader in food and beverages, is preparing to release its fiscal fourth-quarter 2025 results. The company, headquartered in Purchase, New York, operates across North America, Latin America, Europe, Africa, the Middle East, South Asia, and the Asia Pacific. PepsiCo’s diverse portfolio includes iconic brands such as Pepsi, Lay’s, Quaker, Gatorade, and Tropicana.
With a market capitalization of roughly $194.5 billion, PepsiCo has a significant footprint in both snacks and beverages. Over the past year, PEP stock has underperformed broader markets, declining 5.3% over the last 52 weeks. This contrasts with the S&P 500 Index (NYSEARCA:SPX), which gained 16.9%, and the Consumer Staples Select Sector SPDR ETF (NYSEARCA:XLP), which remained largely flat.
Analysts’ PepsiCo Earnings Forecast
Ahead of the Q4 2025 earnings release, analysts forecast an adjusted EPS of $2.24, reflecting a 14.3% increase from $1.96 in the same quarter last year. This follows a trend where PepsiCo has beaten Wall Street expectations in three of the last four quarters, while missing once. Analysts expect full-year fiscal 2025 adjusted EPS to come in at $8.12, slightly below the $8.16 reported in fiscal 2024. Looking forward, fiscal 2026 is projected to show a 5.3% EPS growth to $8.55, signaling modest recovery and potential upside for investors.
Recent Performance Highlights
PepsiCo shares experienced a strong rebound on Oct. 9, 2025, rising 4.2% following the release of Q3 2025 results. Adjusted EPS came in at $2.29, slightly above expectations, with revenue reaching $23.94 billion. Growth was driven by strong performance in Europe, the Middle East, and Africa, where revenue increased 9% year-over-year. North America Beverages also contributed with a 2% revenue increase.
In response to these results, PepsiCo raised its core EPS guidance for 2025, revising the expected decline from 1.5% to just 0.5%. This adjustment reflects management’s confidence in operational resilience amid macroeconomic uncertainties, including inflationary pressures and evolving consumer behavior.
Understanding PEP Stock
Investors tracking PEP stock should consider both valuation and market position. PepsiCo remains one of the largest global food and beverage companies, with a well-diversified portfolio spanning multiple product categories and geographic regions. This scale provides stability but does not eliminate risks from changing consumer preferences, currency fluctuations, or geopolitical disruptions.
Analyst sentiment on PEP stock is cautiously optimistic. Among 20 analysts covering the stock, seven rate it a “Strong Buy,” 12 recommend “Hold,” and one issues a “Strong Sell.” The average price target for PepsiCo is $158.53, implying potential upside of approximately 11.5% from current levels.
Key Takeaways for Investors
For investors, PepsiCo’s earnings forecast indicates measured growth potential. Strong quarterly results and raised guidance highlight the company’s ability to manage challenges in key markets while capitalizing on demand for snacks and beverages. The expected rebound in fiscal 2026 EPS suggests steady earnings momentum, which could support moderate gains for PEP stock.
Investors should also monitor regional performance trends. Revenue strength in Europe, the Middle East, and Africa provides diversification away from North American markets, while North American Beverages growth supports core domestic operations. Operational execution, product innovation, and cost management will be critical to meeting or exceeding analysts’ expectations.
While the stock carries some risks—including global economic uncertainty and competition in both beverage and snack categories—PepsiCo’s consistent track record of beating earnings estimates and raising guidance provides confidence for long-term investors. Insider insight, market positioning, and cautious optimism from analysts collectively suggest that PEP stock could deliver stable returns in the coming year.
Conclusion
PepsiCo’s upcoming fiscal Q4 2025 earnings release is highly anticipated by investors and analysts alike. The PepsiCo earnings forecast points to continued earnings growth, supported by strong brand recognition, geographic diversity, and operational resilience. With analysts projecting moderate upside and a history of outperforming expectations, PEP stock remains a key watch for those seeking exposure to the consumer staples sector.
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