PepsiCo Slashes 2025 Earnings Forecast Amid Trade Uncertainty

Published 3 hours agoPEP

PepsiCo Slashes 2025 Earnings Forecast Amid Trade Uncertainty

PepsiCo has revised its financial outlook for fiscal 2025, projecting a 3% decline in core earnings per share (EPS), contrasting with its earlier prediction of a low-single-digit increase. This marks a significant shift in the company's expectations largely attributed to global trade unpredictability and sluggish consumer spending.

The adjustment is largely due to new tariffs and erratic trade policies impacting various international markets. Additionally, PepsiCo reported a 3% drop in organic volumes within its convenient foods segment for the first quarter of 2025, underscoring difficulties in boosting demand as consumer conditions remain subdued.

Despite these hurdles, PepsiCo remains committed to long-term objectives, including sustainability initiatives and strategic brand acquisitions. These efforts are aimed at reshaping its value proposition and adapting to changing consumer preferences, as noted by previous earnings reports that highlighted PepsiCo's ability to meet EPS forecasts, even if revenue expectations slightly lagged.

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