PEP

PepsiCo (NASDAQ:PEP) reported revenue ahead of Wall Street's expectations in Q4 CY2025, with sales up 5.6% year on year to $29.34 billion. Its non-GAAP profit of $2.26 per share was 1% above analysts’ consensus estimates. Management attributed the performance to targeted affordability initiatives, productivity improvements, and double-digit shelf space gains, particularly in Frito-Lay. Looking ahead, PepsiCo’s guidance is informed by continued investment in affordability, brand relaunches, and innovation targeting evolving consumer trends. The company plans to accelerate growth through these initiatives, including relaunching major brands like Gatorade and Quaker, expanding distribution, and improving operational efficiencies.

On July 17th, PepsiCo (NASDAQ:PEP) stock climbed 7.5% after the firm reported better-than-expected revenue and earnings results. Although there have been positive observations about PEP stock — like its valuation and dividend yield — there is no masking its poor performance. Going into earnings, shares were down 11% on the year and almost 18% over the past 12 months. Shares are still down 26.5% from its record high in May 2023. Further, PepsiCo has underperformed Coca-Cola (NYSE:KO) over the last one, three and five years. So bulls want to know: Can PepsiCo sustain this momentum and turn things around?

PEP (quick overview): Down 24% vs KO +103% over 2yrs due to price hikes amid inflation, missed sales, reduced growth projections, Quaker recall (now resolved), and tariffs. Rebound potential: Poppi acquisition ($1.95B), double-digit growth in zero-sugar/functional beverages, strong Q1 Quaker recovery, smaller packaging strategy, and easing inflation.