PepsiCo (NASDAQ: PEP) reported weaker-than-expected earnings for the first quarter and lowered its full-year profit guidance, citing rising supply chain costs and uncertainty tied to escalating global trade tensions.
Earnings per share came in at $1.48, missing the Street estimate of $1.51. However, revenue slightly beat forecasts, rising to $17.92 billion.
The company reported a 2% decline in organic volumes during the quarter, as promotional efforts across its snack and beverage portfolio have yet to lift demand meaningfully.
For 2025, PepsiCo reaffirmed its expectations for low-single-digit organic revenue growth and a core annual effective tax rate of approximately 20%. The company also plans to return roughly $8.6 billion to shareholders, including $7.6 billion in dividends and $1.0 billion in share repurchases.
However, citing higher input costs due to tariffs, along with ongoing macroeconomic challenges and cautious consumer spending, PepsiCo now expects core constant currency EPS to remain flat compared to the prior year—down from its previous guidance of mid-single-digit growth.
The company’s shares are down about 6.4% year-to-date, while the S&P 500 has fallen 8.6% since the start of the year.
PepsiCo has a consensus rating of “Buy” and an average price target of $171, implying approximately 20% upside potential from the current stock price.
As of press time, PepsiCo (NASDAQ: PEP) stock is down 4.94%, trading at $135.23.
David Kirakosyan is a seasoned financial journalist with nearly a decade of hands-on experience in covering the U.S. stock markets. Since 2016, he has written thousands of equity news articles, detailed market analyses, and investment insights for trusted platforms like Benzinga, Investing.com, and StreetInsider. David holds a Master of Science in Finance and is a Level 2 CFA® candidate, reflecting his deep commitment to financial expertise and ethical standards. His reporting combines real-world market experience with a strong academic foundation, helping readers make informed decisions backed by reliable information. Read Full Bio
