• PepsiCo is set to release its quarterly earnings on October 9, 2025, with analysts estimating an EPS of $2.27 and revenue of approximately $23.87 billion.
• The stock has recently outpaced the S&P 500, despite a 6.55% decline over the past month, indicating volatility in its market performance.
• Elliott Management's $4 billion investment and push for strategic changes highlight potential for a turnaround amidst challenges in 2025.

PepsiCo, Inc. (NASDAQ:PEP) is a global food and beverage leader known for its diverse product portfolio, including brands like Pepsi, Mountain Dew, Lay's, and Gatorade. The company operates in the highly competitive consumer staples sector, facing rivals such as Coca-Cola and Nestlé. PepsiCo is set to release its quarterly earnings on October 9, 2025, with analysts estimating an earnings per share (EPS) of $2.27 and revenue of approximately $23.87 billion.

In the latest trading session, PepsiCo's stock closed at $143.14, marking a 1.92% increase from the previous day. This performance outpaced the S&P 500's 0.34% gain, the Dow's 0.09% rise, and the Nasdaq's 0.42% increase. Despite this recent uptick, PepsiCo's shares have declined by 6.55% over the past month, underperforming the Consumer Staples sector's 3.82% loss and the S&P 500's 3.54% gain.

PepsiCo has faced challenges in 2025, underperforming compared to the S&P 500. The company has been affected by negative sentiment surrounding consumer trends and the impact of weight-loss drugs. In a significant development, Elliott Management has invested $4 billion in PepsiCo, signaling confidence in a potential turnaround. Elliott is pushing for cost reductions, a sharper focus on core brands, and a possible spin-off of the bottling operations, similar to Coca-Cola's model.

The third quarter of 2025 is crucial for PepsiCo, as investors closely watch how management responds to Elliott's proposals. There is also strong interest in the company's progress with healthier product offerings, such as Poppi and prebiotic sodas. PepsiCo's financial metrics include a price-to-earnings (P/E) ratio of approximately 26.01, a price-to-sales ratio of about 2.13, and an enterprise value to sales ratio of around 2.61.

PepsiCo's enterprise value to operating cash flow ratio is approximately 19.64, highlighting the relationship between the company's valuation and its cash flow from operations. The earnings yield is about 3.84%, representing the return on investment for shareholders. The debt-to-equity ratio is approximately 2.79, indicating the proportion of debt used to finance the company's assets relative to shareholders' equity. Lastly, the current ratio is around 0.78, suggesting the company's ability to cover its short-term liabilities with its short-term assets.