PepsiCo Inc (NASDAQ:PEP) reported mixed results for the fiscal third quarter, mainly due to subdued consumption trends, according to Goldman Sachs.
The PepsiCo Analyst: Analyst Bonnie Herzog reiterated a Buy rating and price target of $165.
The Thesis: The company posted softer-than-expected organic revenue growth of 1.3%, missing consensus of 2.2%, Herzog said in the note.
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Despite pressure on volumes, strong cost controls helped PepsiCo report earnings of $2.29 per share, topping Street expectations of $2.26 per share, he added.
Given the U.S. dollar weakness, the company's guidance for 2025 implies earnings of around $8.12 per share, higher than consensus of $8.03 per share, the analyst stated.
PepsiCo also announced that Steve Schmitt will take over as Chief Financial Officer, following Jamie Caulgeld‘s decision to retire next year, he said.
PepsiCo appointed Steve Schmitt as Executive Vice President and Chief Financial Officer, effective November 10, 2025, succeeding Jamie Caulfield, who will retire after more than 30 years with the company.
Schmitt joins PepsiCo from Walmart Inc. (NYSE:WMT), where he served as EVP and CFO for Walmart U.S.
Before Walmart, Schmitt held several leadership roles at Yum! Brands, Inc. (NYSE:YUM), gaining deep expertise in the quick-service restaurant and away-from-home business segments while shaping long-term growth strategies.
"Overall, we continue to expect an inflection next quarter as PEP rolls out a robust pipeline of innovation (including several new protein beverages) to accelerate its portfolio transformation, continues to sharpen its price-pack architecture to provide good value to consumers – as well as rightsizing its cost base," Herzog further wrote.
PEP Price Action: Shares of PepsiCo had risen by 2.41% to $142.18 at the time of publication on Thursday.
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