PepsiCo Cuts 2025 Profit Outlook Amid Supply Chain, Tariff Challenges

PepsiCo has revised its profit outlook for 2025, now projecting a 3% decline in core earnings per share, citing increased supply chain costs from tariffs and ongoing global trade uncertainties. The company noted that tariffs on soda concentrate imported from Ireland and aluminum imports are directly impacting its cost structure, while subdued consumer demand and macroeconomic volatility further cloud the outlook. Despite these challenges, PepsiCo's latest quarterly revenue exceeded expectations, though earnings per share narrowly missed forecasts. Organic volumes for its convenient foods segment fell 3%, and beverage volumes were flat globally but declined in North America. CEO Ramon Laguarta emphasized that the company is actively seeking ways to mitigate rising costs and improve regional performance, while maintaining its long-term international growth strategy. Analyst sentiment remains mixed, with most rating the stock as 'Hold' and forecasting modest potential upside.