PepsiCo Is Handing Market Share to Coca-Cola, Analyst Warns
Key takeaways
- PepsiCo’s weaker outlook and declining North American beverage sales are likely to boost Coca‑Cola’s market share and share price.
- PepsiCo revenue $25.27 billion (5.6% QoQ increase)
- PepsiCo core earnings $2.34 per share (beat $2.29 estimate)
- PepsiCo 2026 adjusted earnings outlook $8.34–$8.43 per share (below $8.55 estimate)
What happened
PepsiCo’s third‑quarter earnings beat expectations with revenue of $25.27 billion and core earnings of $2.34 per share, but the company cut its 2026 adjusted earnings outlook to $8.34–$8.43 per share, below analysts’ $8.55 estimate. PepsiCo also admitted its North American carbonated soft‑drink business underperformed the market, with organic revenue slipping slightly as lower volumes offset pricing gains. Analysts warn that PepsiCo may lose further beverage market share to Coca‑Cola and…
Why it matters
The downgrade in PepsiCo’s outlook and its admission of declining North American beverage sales signals a shift in the competitive balance of the soft‑drink market. Investors now view Coca‑Cola as a likely beneficiary of PepsiCo’s market‑share erosion, which has lifted KO’s stock by nearly 2% as the consumer‑staples…
Short-term and longer-term
Short-term. Coca‑Cola’s stock is hovering just above its 20‑day SMA and below its 50‑day SMA, suggesting a potential breakout if it can push higher.
Longer-term. Over the next few weeks, Coca‑Cola’s upcoming Q3 earnings on Oct.