Zacks Investment Research
24 Nov 2025, 18:01 UTC · 49w ago
Impact · against what's priced in
PepsiCo faces a precarious path to meeting its flat EPS target due to tangible headwinds from tariffs and currency volatility. While the company is implementing cost-cutting measures, the 3% headwind from trade costs and 0.5% currency drag create a high bar for earnings maintenance.
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What the story claims
4 claims · scored −1 bearish … +1 bullish
Tariff impacts and rising global input costs created a three-percentage-point headwind in the most recent quarter.
So whatDirect evidence of margin erosion due to external trade costs suggests a significant drag on profitability.
More negative than 87% of claims this week
Currency translation is expected to negatively impact reported revenues and core EPS by approximately 0.5 percentage points.
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5 related stories
The 3% headwind from tariffs and input costs, coupled with a 0.5% drag from currency translation, creates significant friction for a company targeting flat EPS.
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Coca-Cola is identified as facing similar currency and tariff pressures as PepsiCo, suggesting a sector-wide drag on international profit conversion.
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Keurig Dr Pepper is also noted to be feeling the negative impact of rising tariff-related costs and currency movements.
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Scored by the NIS engine · methodology.
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More negative than 79% of claims this week
PepsiCo expects core constant-currency EPS to remain roughly flat year over year for 2025.
So whatFlat earnings growth guidance for a large-cap consumer staple typically signals a lack of immediate upside catalysts for the stock.
More negative than 72% of claims this week
PepsiCo is implementing cost cuts, SKU streamlining, and increased automation to offset operating costs.
So whatInternal efficiency measures are a positive sign of management agility to protect margins against macro headwinds.
More positive than 47% of claims this week
Which stocks this story touches
More negative than 79% of ticker scores this week
Facing major external headwinds from currency volatility and rising tariff-related costs weighing on profits.
More negative than 72% of ticker scores this week
Mentioned as feeling the negative impact of currency movements and tariff-related costs.
More negative than 72% of ticker scores this week
Mentioned as feeling the negative impact of currency movements and tariff-related costs.
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MarketBeat
53m ago
More positive than 76% of relationship scores this week
[mutual] Both companies are mentioned as facing similar headwinds in the beverage market.
More positive than 76% of relationship scores this week
[mutual] Both companies are mentioned as facing similar headwinds in the beverage market.
+25.2%
Price is moving against the score
$34.74 vs $27.74 close before publication (Nov 21) · not market-adjusted
KDP chart →−6.2%
Price agrees with the score
$137.27 vs $146.33 close before publication (Nov 21) · not market-adjusted
PEP chart →+30.0%
Price is moving against the score
$94.80 vs $72.95 close before publication (Nov 21) · not market-adjusted
KO chart →
