PepsiCo (PEP) Tops Q3 Earnings and Revenue Estimates

Core Insights - PepsiCo reported quarterly earnings of $2.29 per share, exceeding the Zacks Consensus Estimate of $2.27 per share, but down from $2.31 per share a year ago, indicating an earnings surprise of +0.88% [1] - The company generated revenues of $23.94 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 0.25% and up from $23.32 billion year-over-year [2] - PepsiCo has outperformed consensus EPS estimates three times in the last four quarters and has also topped revenue estimates three times during the same period [2] Earnings Outlook - The sustainability of PepsiCo's stock price movement will largely depend on management's commentary during the earnings call and future earnings expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $2.15 on revenues of $28.67 billion, while the estimate for the current fiscal year is $8.03 on revenues of $93.32 billion [7] Industry Context - The Beverages - Soft drinks industry, to which PepsiCo belongs, is currently ranked in the bottom 15% of over 250 Zacks industries, which may negatively impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that investors should monitor these revisions closely [5][6]