- PepsiCo (NASDAQ: PEP) is set to report Q3 2026 earnings, with analysts expecting $2.29 EPS and $25.00 billion in revenue.
- The company faces challenges in North American sales, with organic revenue declining, prompting adjustments in package sizes and pricing, and adapting to changing consumer preferences and inflation.
- Despite a 13% year-to-date stock decline, PepsiCo maintains a strong dividend history with a 4.70% yield and a 16.45 trailing P/E ratio.
PepsiCo (NASDAQ: PEP) is expected to report third-quarter earnings before the market opens on October 8, 2026. Wall Street expects earnings of $2.29 per share and revenue of $25.00 billion. PepsiCo sells drinks and snacks, including Pepsi and Lay’s, and competes with Coca-Cola in beverages.
North American sales are a key part of the report. In the second quarter of 2026, organic revenue in the region fell 0.5%, while PepsiCo Foods North America net revenue declined 2%, mainly because of lower effective pricing. As highlighted by Zacks, PepsiCo is adjusting package sizes and prices to make its products more affordable.
Inflation and changing tastes may also affect demand. As highlighted by The Motley Fool, a columnist points to resistance from shoppers and retailers such as Walmart, along with the possible impact of GLP-1 drugs. PepsiCo bought prebiotic soda brand Poppi for nearly $2.00 billion last year as it responds to changing preferences.
PepsiCo shares are down about 13% this year and roughly 25% from their February highs. As highlighted by Investopedia, options prices suggest the shares could move as much as 3.5% in either direction by week’s end. Based on Monday’s close, that implies a range of roughly $121.00 to $130.00.
The stock’s dividend yield is about 4.70%, and PepsiCo has raised its dividend for 54 consecutive years. Its trailing price-to-earnings ratio is 16.45, meaning the shares trade at 16.45 times the company’s earnings over the past year. Investors can compare the results with expectations of $2.29 per share and $25.00 billion in revenue.
