PepsiCo Revises 2025 Earnings Forecast Amid Tariff Pressures

Published 1 hours agoPEP

PepsiCo Revises 2025 Earnings Forecast Amid Tariff Pressures

PepsiCo has adjusted its 2025 earnings forecast, now anticipating core earnings per share to remain flat compared to 2024 levels. This marks a shift from their prior expectation of mid-single-digit percentage growth. Key factors influencing this revision include increased costs stemming from tariffs and broader macroeconomic uncertainties, notably a 25% tariff on imported aluminum impacting their operations.

In the first quarter of 2025, PepsiCo reported a net revenue decline of 1.8%, bringing in $17.92 billion, which was slightly above market expectations. The company experienced a 3% drop in global sales volumes, though this was partially offset by a 3% increase in pricing. Despite these challenges, PepsiCo predicts low-single-digit percentage growth in organic revenue for the year, following a 1.2% organic revenue increase in the first quarter.

PepsiCo is continuing with its financial strategies, reaffirming plans to distribute $7.6 billion in dividends and conduct $1 billion in share buybacks in 2025. Although the revised earnings forecast contributed to a 6.4% decline in PepsiCo's stock earlier in the year, the immediate market reaction to the announcement was muted, with a pre-market drop of just 1% as reported by Insider Monkey.

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