PepsiCo (PEP) Is About to Report Q2 Earnings. Here’s What to Expect

Snack food and beverage giant PepsiCo (PEP) is scheduled to announce its results for the second quarter of 2025 on Thursday, July 17. PEP stock is down nearly 11% year-to-date due to the company’s sluggish North American business, shift in consumer preferences toward healthier options, tariff pressures, intense competition, and macro uncertainty. Wall Street expects PepsiCo to report earnings per share (EPS) of $2.03, reflecting about an 11% year-over-year decline.

The company’s Q2 revenue is estimated to fall by 1% to $22.2 billion.

Analysts’ Views Ahead of PepsiCo’s Q2 Earnings

Heading into the Q2 results, Evercore analyst Robert Ottenstein reiterated a Hold rating on PepsiCo stock with a price target of $140. The analyst stated that he is concerned about the stock being range-bound until growth is seen in the domestic business. He noted that PepsiCo has seen challenging trends since 2024, leading to several guidance cuts due to weakness in the Frito-Lay North America (FLNA) division.

Ottenstein noted that while PepsiCo’s productivity efforts continue and are expected to support EPS growth in FY26 and beyond, weak top-line trends, tariffs, forex headwinds, and interest expense are expected to adversely impact the company’s performance this year. He expects Q2 organic sales growth to come in at 0.9% compared to the Street’s estimate of 1.8% due to pressure in the North American business. Ottenstein’s Q2 EPS estimate of $2.02 is also below the consensus estimate.

Meanwhile, UBS analyst Peter Grom reiterated a Buy rating on PEP stock with a price target of $169. Grom expects a challenging Q2, with his organic growth and EPS estimates about 40 basis points and $0.03 below consensus estimates, respectively. The analyst expects PepsiCo’s international performance to remain strong. However, with little improvement in tracked trends for FLNA and the PepsiCo Beverages North America (PBNA) divisions this Spring, Grom expects the core debate centered around PepsiCo’s ability to revive its struggling North American business to persist.

While Grom thinks that the near-term setup remains mixed, he still sees a path to low/mid-single-digit organic revenue growth and mid/high-single-digit adjusted EPS growth over the long term. He highlighted that with PEP stock trading at a 23% discount to large-cap multinationals, the risk/reward still skews to the upside from current levels.

TipRanks’ AI Analyst Is Bullish on PepsiCo Stock Ahead of Q2 Print

TipRanks’ AI stock analysis assigns an Outperform rating on PepsiCo stock with a price target of $154, reflecting a 13.6% upside potential. The AI analyst rating is based on strong financial performance, efforts to enhance liquidity, and solid international growth. That said, technical indicators, valuation, tariffs, and North American market conditions suggest some caution.

Interestingly, TipRanks’ A.I. Stock Analysis provides automated, data-backed evaluations of stocks across key metrics, offering users a clear and concise view of a stock’s potential.

Here’s What Options Traders Anticipate Ahead of PEP’s Q2 Earnings

Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you.

Indeed, it currently says that options traders are expecting about a 4.14% move in either direction in PepsiCo stock in reaction to Q2 results.

Is PepsiCo a Good Stock to Buy?

Currently, Wall Street is sidelined on PepsiCo stock, with a Hold consensus rating based on three Buys and 10 Holds. The average PEP stock price target of $146.58 indicates 8.1% upside potential from current levels.

See more PEP analyst ratings