With a market cap of $179.7 billion, PepsiCo, Inc. (PEP) is a global food and beverage leader headquartered in Purchase, New York. Best known for its iconic soft drink Pepsi, the company has built a diverse portfolio that spans beverages, snacks, and convenience foods. Its major brands include Pepsi, Mountain Dew, Gatorade, Tropicana, Lay’s, Doritos, Cheetos, Quaker, and Aquafina, many of which generate over $1 billion in annual sales.

The food and beverage giant is set to unveil its second-quarter results before the market opens on Thursday, July 17. Ahead of the event, analysts expect PEP to report a non-GAAP EPS of $2.03, down 11% from $2.28 reported in the year-ago quarter. The company has surpassed the Street’s bottom-line expectations in three of the past four quarters, while missing on the last quarter.

For the current year, analysts project PepsiCo to deliver a non-GAAP EPS of $7.86, down 3.7% from $8.16 in fiscal 2024. However, in fiscal 2026, PepsiCo’s earnings are expected to grow 5.2% year-over-year to $8.27 per share.

PepsiCo’s stock prices have plunged 21.2% over the past 52 weeks, significantly underperforming the S&P 500 Index’s ($SPX) 12.6% returns and the Consumer Staples Select Sector SPDR Fund’s (XLP) 8.7% gains during the same time frame.

The beverage titan has lagged the broader market over the past year due to weakening performance in its North American Foods division, particularly Frito-Lay, amid softening consumer demand and persistent macroeconomic pressures.

PepsiCo shares dropped 4.9% on April 24 following the release of its Q1 2025 results. While revenue came in at $17.9 billion, slightly above analyst expectations, it marked a 1.8% decline from the prior year. Adjusted EPS of $1.48 fell short of forecasts, and performance in the North American market also weighed on results, with food volumes slipping 1% and beverage volumes down 3%.

Instead of the previously projected mid-single-digit growth, PepsiCo now expects flat core constant currency EPS growth, citing rising supply chain costs, particularly from tariffs, and continued weakness in consumer demand.

On the bright side, the consensus opinion on PEP is moderately bullish, with a “Moderate Buy” rating overall. Out of the 20 analysts covering the stock, opinions include six “Strong Buys,” 13 “Holds,” and one “Strong Sell.” Its mean price target of $147.63 suggests a 12.7% upside potential from current price levels.