Earnings Season Kicks Off: What to Watch from PepsiCo, Delta, Levi’s, Applied Digital, Tilray & Neogen
The first batch of Q3 earnings arrives today. Covering staples, airlines, cannabis, denim, and digital infrastructure, here’s what investors should watch across each name.
The First Wave of Q3 Earnings Is Here
The long-awaited Q3 earnings season kicks off today, offering investors an early read on consumer strength, travel demand, and tech infrastructure momentum.
Six notable companies, including PepsiCo PEP 0.00%↑, Delta Air Lines DAL 0.00%↑, Levi Strauss LEVI 0.00%↑, Applied Digital APLD 0.00%↑, Tilray TLRY 0.00%↑, and Neogen NEOG 0.00%↑ are set to report before the broader earnings floodgates open next week.
Here’s a breakdown of what to expect and where the biggest surprises might come from.
DAL 0.00%↑ Testing the Travel Rebound
Delta will report before market open, with Wall Street watching closely to see if the airline can sustain its strong summer momentum.
Just weeks ago, DAL 0.00%↑ reaffirmed its full-year and Q3 guidance, even lifting the lower end of its revenue outlook to +2% to +4%, up from prior guidance of 0% to +4%.
This confidence signals renewed strength in U.S. travel demand after months of uncertainty tied to trade tensions and tariffs. Executives remain optimistic that resilient leisure demand and the gradual return of corporate travel could help airlines raise fares into late 2025.
Key to watch: yield per passenger mile and management’s commentary on demand elasticity heading into Q4.
PEP 0.00%↑ Activist Pressure Meets Defensive Staples
PepsiCo also reports before market open, and this one’s not just about snacks and soda.
Activist investor Elliott Investment Management, which recently disclosed a $4 billion stake, is pushing for bold changes:
Spinning off the Quaker Foods division,
Potentially divesting Pepsi’s bottling operations,
And refocusing on high-margin beverages and chips.
While sentiment has improved slightly since Elliott’s arrival, PEP 0.00%↑ shares remain down over 7% YTD, lagging the S&P Consumer Staples index. Analysts caution that management may resist aggressive restructuring, especially given the long timelines and execution risks tied to separating bottling operations.
Key to watch: gross margin trends, organic revenue growth, and any response from management to Elliott’s proposals.
LEVI 0.00%↑ Margin Resilience or Fashion Fatigue?
Levi Strauss enters earnings with cautious optimism. The company recently raised its full-year outlook, now targeting 1–2% revenue growth and EPS of $1.25–$1.30, signaling confidence in its direct-to-consumer pivot.
However, macro pressures persist: inflation, FX headwinds, and consumer belt-tightening could challenge that narrative. Analysts forecast EPS of $0.13–$0.14 on ~$1.37B in revenue, a modest year-over-year dip.
If LEVI 0.00%↑ can deliver upside on margins or show progress in expanding DTC and women’s lines, it may reinforce the view that the brand’s modernization strategy still has legs heading into 2026.
Key to watch: DTC growth, gross margin expansion, and inventory management.
APLD 0.00%↑ Binary Bets on Data & Crypto
Applied Digital remains one of the more volatile plays this week. Street consensus points to a loss of around $0.14 per share on $45–55M in revenue, with sentiment hinging on crypto market activity and AI data center demand.
APLD 0.00%↑’s hybrid exposure to both blockchain infrastructure and high-performance computing means results can swing sharply. A top-line beat or strong guidance could fuel momentum, while weak utilization or delays could amplify downside pressure.
Key to watch: data center utilization rates, backlog visibility, and management tone on 2026 pipeline growth.
TLRY 0.00%↑ Searching for a Sustainable Cannabis Rebound
TLRY 0.00%↑ is set to report a small year-over-year revenue increase of 2–3%, but profitability remains elusive, with consensus EPS around –$0.03.
The company continues to diversify beyond cannabis into beverages, wellness, and European medical markets, aiming to stabilize growth amid regulatory uncertainty.
Investors will be eyeing any progress on gross margin improvement, SG&A reduction, and international expansion, especially as broader cannabis sentiment improves slightly on regulatory hopes in the U.S. and Europe.
Key to watch: revenue mix, European segment growth, and updates on cost efficiency.
NEOG 0.00%↑ Quiet Strength in Food & Ag Diagnostics
NEOG 0.00%↑ may not grab headlines like the others, but its earnings will offer an important read on the agri-science and food safety sectors. Analysts expect ~$203M in revenue and $0.03 EPS, reflecting modest growth despite cost inflation pressures.
Neogen’s core markets (animal safety, genomics, and food diagnostics) continue to show resilience, and investors will look for steady execution rather than big surprises.
Key to watch: margin trends and progress on integration of past acquisitions.
Conclusion: Early Earnings, Big Signals
Today’s reports won’t define the quarter, but they’ll set the tone. With names like Delta and PepsiCo offering insight into macro demand and consumer health, and riskier plays like Tilray and Applied Digital reflecting investor sentiment on speculative growth, this batch spans the market’s entire risk spectrum.
Expect volatility, soundbites on inflation and demand trends, and a preview of how corporate America is adapting to slower growth, activist pressure, and evolving consumer behavior heading into 2026.
This publication is for informational and educational purposes only. It does not constitute investment advice, a recommendation, or a solicitation to buy or sell any securities. The analysis reflects the author’s views at the time of writing and may change without notice. Investors should conduct their own research and consult with a licensed financial advisor before making investment decisions.