Pepsi and Delta Airlines are part of Zacks Earnings Preview

For Immediate Release

Chicago, IL – October 6, 2025 – Zacks.com releases the list of companies likely to issue earnings surprises. This week’s list includes Pepsi PEP, Delta Airlines DAL.

A Closer Look at the Evolving Earnings Picture

This week's quarterly reports from Pepsi, Delta Airlines and two other S&P 500 members for their respective fiscal quarters ending in August will get counted as part of our September-quarter tally. We have already seen such fiscal August-quarter results from 19 S&P 500 members, including results from FedEx, General Mills, Oracle, and others.

We will discuss current expectations for Pepsi and Delta a little later in this note, but we will first review aggregate Q3 expectations for the S&P 500 index as a whole.

The expectation is for Q3 earnings to increase by +5.4% from the same period last year on +6.1% higher revenues. This would follow earnings growth rates of +12.6% and +12.4% in 2025 Q2 and Q1, respectively.

In the unlikely event that actual Q3 earnings growth for the S&P 500 index turns out to be +5.3% as currently expected, this will be the lowest earnings growth pace for the index since 2023 Q3.

Regular readers of our earnings commentary are familiar with us consistently flagging the favorable shift in the revisions trend that has been in place for the last few months. We have regularly featured how Q3 estimates moved higher after the start of the period, marking a shift from the trends observed in the first two quarters of the year.

The positive revisions trend has not been limited to Q3 alone, as estimates for Q4 have also increased recently.

Since the start of July, Q4 estimates have increased for 7 of the 16 Zacks sectors, which include the Tech, Finance, and Energy sectors. Other sectors enjoying positive estimate revisions for Q4 include Retail, Utilities, Transportation, and Business Services.

On the negative side, Q4 estimates remain under pressure for 8 of the 16 Zacks sectors, with notable pressure at the Consumer Discretionary, Medical, Autos, Industrial Products, and Construction sectors.

Getting back to Q3 expectations, the Tech sector is expected to continue playing the leading growth driver role in the coming periods as well. For 2025 Q3, Tech sector earnings are expected to increase +11.9% on +12.8% higher revenues, with Q4 earnings currently expected to be up +8.7% on +11.6% revenue growth.

Key Earnings Reports This week

We have more than 25 companies on deck to report results this week, including four S&P 500 members. In addition to Pepsi and Delta Air Lines, notable companies reporting this week include Constellation Brands, McCormick & Company, Levi Strauss & Co., and others.

Pepsi will be reporting results before the market's open on Thursday, October 9^th, with the company expected to report earnings of $2.27 per share on $23.88 billion in revenues, representing year-over-year changes of -1.7% and +2.4%, respectively. The revisions trend has been positive, with estimates modestly up over the last two months. Pepsi shares had responded positively to the previous quarterly report on July 17^th, but the gains eventually dissipated.

Pepsi shares have been big-time laggards in the year-to-date period, with the stock down -6.1% this year, lagging the S&P 500 index's +15.3% gain and rival Coca-Cola's +7.4% gain. The stock has performed better lately, with Pepsi shares modestly outperforming Coca-Cola shares over the preceding three- and six-month periods.

In line with Pepsi's growth challenges, the stock's valuation multiple has notably compressed, with current valuation in the vicinity of its 5-year low.

Delta will be reporting the same morning as Pepsi, with the air carrier expected to report $1.60 per share in earnings on $15.93 billion in revenues, representing year-over-year changes of +6.7% and +1.6%, respectively. The stock surged following the last quarterly release, which included favorable guidance and management commentary. While the stock price has fluctuated in the wake of the previous quarterly report on July 10th, the revisions trend has sustainably remained positive since then.

With Q4 being a seasonally strong period for Delta, as well as the broader airline group, management guidance will be key in determining how the stock reacts to this quarterly report. Year-to-date, Delta shares are down -5.2% this year, lagging the broader market's +15.2% gain and rival United Airlines' -1.8% decline.

Q3 Earnings Season Scorecard

As noted earlier, we have already seen results for fiscal quarters ending in August from 19 S&P 500 members, which we include in our September-quarter tally. Total earnings for these 19 index members are up +11.9% from the same period last year on +7.2% higher revenues, with 73.7% beating EPS estimates and 78.9% beating revenue estimates.

The Earnings Big Picture

In terms of S&P 500 index 'EPS', these growth rates approximate to $258.12 for 2025 and $290.98 for 2026.

For a detailed view of the evolving earnings picture, please check out our weekly Earnings Trends report here >>>>Bank Earnings in Focus as Q3 EarningsSeason Takes Center Stage

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