PepsiCo Q3 Preview: Stock At Lowest Since 2020, Market Expert Sees 19% Downside On Weak Report

Beverage and snack food giant PepsiCo (NASDAQ:PEP) looks to rebound with shares trading near seven-year lows. The company will report third-quarter financial results Thursday before market open. Here are the earnings estimates, what experts are saying and key items to watch. PepsiCo Q3 Earnings Estimates Analysts expect PepsiCo to report third-quarter revenue of $24.96 billion, up from $23.94 billion in last year’s third quarter, according to data from Benzinga Pro. The company has beaten analyst estimates for revenue in seven straight quarters and in eight of the last 10 quarters overall. Analysts expect PepsiCo to report third-quarter earnings per share of 88 cents, up from 82 cents per share in last year’s third quarter. The company has beaten analyst estimates for earnings per share in 10 straight quarters. Read Also: How To Earn $500 A Month From PepsiCo Stock Ahead Of Q3 Earnings What Experts are Saying Freedom Capital Markets Chief Market Strategist Jay Woods says Pepsi stock has "fizzled in 2026." "The consumer staple giant is parading at 52-week lows and is lower by 10.5%," Woods said in a weekly newsletter. With Pepsi beating analysts’ estimates fairly consistently in recent quarters, the stock has traded higher four of the last five times after quarterly results, Woods said. Those rallies were all short-lived before fading. "The question is whether earlier snack price cuts have finally lifted North American volume while its beverage business shows signs of improvement." Woods said Pepsi is balancing lower consumer costs with margin protection, without losing market share. Looking at the Pepsi chart, Woods said the stock is oversold, and a relief rally could signal a bullish sign. Woods sees support at the $128 level, but warns that the $125 level, which was broken Wednesday, could be the time to exit the trade. "Any negative report could see shares of the once mighty beverage giant trend towards its historical COVID lows just around $100." Here are recent analyst ratings on Pepsi stock and their price targets: RBC Capital: Maintained Sector Perform rating, lowered price target from $161 to $150 Wells Fargo: Maintained Equal-Weight rating, lowered price target from $140 to $135 UBS: Maintained Buy rating, lowered price target from $159 to $145 Barclays: Maintained Equal-Weight rating, lowered price target from $142 to $133 Analysts have been cutting their price targets and the optimism for the beverage and food giant is fading. Key Items to Watch Pepsi stock has gotten hammered in 2026, and part of the reason is the most recently reported second quarter. In that quarter, Pepsi missed EPS estimates, reported weak North American organic sales and provided guidance that was maintained versus raised. The company said consumer budgets, rising inflation and higher gas prices were all factors impacting the North American section of the business. With those items still part of the overall concerns, investors will look for signs that the North American sector can improve. International business lines showed momentum in the second quarter, with the 21st consecutive quarter of at least mid-single-digit growth. A double beat and raised guidance may be needed to move the stock given current expectations and analyst pessimism. Rival Coca-Cola (NYSE:KO) will report quarterly results weeks later on Oct. 27. Coca-Cola has beaten analyst estimates for earnings per share in 10 straight quarters an beaten revenue in seven of the last 10 quarters. Analysts expect the company to see year-over-year increases in both earnings and revenue, while Pepsi earnings are expected to come in flat from last year. While Pepsi stock has struggled, Coca-Cola stock is up 23.6% year-to-date, with new all-time highs hit in July. Pepsi Stock Price Action Pepsi stock is down 1.3% to $124.09 on Wednesday, with shares hitting new 52-week lows of $123.85 during the intraday trading session. Read Also: Congressman Ditches Magnificent Seven Stocks for Consumer Staples: Here's What He Bought Image via Shutterstock