PepsiCo (NASDAQ:PEP) Issues FY 2026 Earnings Guidance
by Jessica Moore · The Cerbat GemPepsiCo (NASDAQ:PEP – Get Free Report) updated its FY 2026 earnings guidance on Thursday. The company provided EPS guidance of 8.465-8.628 for the period, compared to the consensus EPS estimate of 8.620. The company issued revenue guidance of $95.8 billion-$97.7 billion, compared to the consensus revenue estimate of $98.3 billion.
Analyst Upgrades and Downgrades
Several brokerages have recently weighed in on PEP. BNP Paribas Exane set a $191.00 price target on shares of PepsiCo in a research report on Wednesday, February 4th. Wells Fargo & Company boosted their price target on shares of PepsiCo from $154.00 to $165.00 and gave the company an “equal weight” rating in a research report on Wednesday, February 4th. Weiss Ratings reissued a “hold (c)” rating on shares of PepsiCo in a research report on Wednesday, April 8th. UBS Group lowered their price target on shares of PepsiCo from $190.00 to $186.00 and set a “buy” rating on the stock in a research report on Tuesday, April 7th. Finally, Evercore boosted their price target on shares of PepsiCo from $152.00 to $165.00 in a research report on Wednesday, February 4th. Eight research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, PepsiCo presently has an average rating of “Hold” and an average price target of $168.16.
Get Our Latest Analysis on PepsiCo
PepsiCo Trading Down 0.6%
NASDAQ PEP opened at $154.85 on Thursday. The firm’s 50-day moving average is $160.23 and its two-hundred day moving average is $151.41. PepsiCo has a 12 month low of $127.60 and a 12 month high of $171.48. The company has a debt-to-equity ratio of 2.06, a current ratio of 0.85 and a quick ratio of 0.67. The stock has a market capitalization of $211.67 billion, a P/E ratio of 25.81, a PEG ratio of 3.01 and a beta of 0.40.
PepsiCo (NASDAQ:PEP – Get Free Report) last issued its quarterly earnings results on Wednesday, April 15th. The company reported $1.61 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.55 by $0.06. The company had revenue of $19.44 billion for the quarter, compared to analyst estimates of $18.89 billion. PepsiCo had a net margin of 8.77% and a return on equity of 57.92%. On average, sell-side analysts anticipate that PepsiCo will post 8.3 earnings per share for the current year.
PepsiCo Dividend Announcement
The firm also recently declared a quarterly dividend, which was paid on Tuesday, March 31st. Shareholders of record on Friday, March 6th were paid a dividend of $1.4225 per share. The ex-dividend date was Friday, March 6th. This represents a $5.69 dividend on an annualized basis and a yield of 3.7%. PepsiCo’s dividend payout ratio is 94.83%.
PepsiCo announced that its Board of Directors has initiated a share buyback program on Tuesday, February 3rd that allows the company to buyback $10.00 billion in outstanding shares. This buyback authorization allows the company to repurchase up to 4.7% of its stock through open market purchases. Stock buyback programs are usually a sign that the company’s board of directors believes its shares are undervalued.
PepsiCo News Roundup
Here are the key news stories impacting PepsiCo this week:
- Positive Sentiment: Q1 beat on both profit and sales — PepsiCo reported $1.61 EPS (vs. ~$1.55 est.) and $19.44B revenue, outperforming estimates and showing demand pickup from recent price reductions. Press Release
- Positive Sentiment: Management said North American food volumes are improving and price cuts on key snack SKUs are driving higher demand — a key operational win for the turnaround story. CNBC: Earnings Beat
- Positive Sentiment: Top-line beat confirmed by Reuters coverage highlighting that price cuts revived U.S. snack demand while energy drinks and new soda varieties remained strong. Reuters: Revenue Beat
- Neutral Sentiment: Macro tailwinds: U.S. futures were lifted by easing geopolitical tensions, which supported broader risk appetite and helped shares tread higher in premarket commentary. Benzinga: Market Futures
- Neutral Sentiment: Marketing/product activity: Gatorade announced hydration-focused packaging and product moves that should support the beverage portfolio over time. PR Newswire: Gatorade Campaign
- Negative Sentiment: FY‑2026 guidance disappointed: PepsiCo set EPS guidance of 8.465–8.628 (vs. ~8.62 consensus) and revenue guidance of $95.8B–$97.7B, below the ~$98.3B Street view — investors worry about margin pressure from price cuts and slower top‑line trajectory.
- Negative Sentiment: Analyst / target downgrades and legal noise — Barclays trimmed its price target to $154 (equal weight), and the company settled an EEOC suit (legal/PR distraction). MarketScreener: Barclays PT Cut Bloomberg Law: EEOC Settlement
Institutional Trading of PepsiCo
A number of institutional investors and hedge funds have recently bought and sold shares of PEP. AQR Capital Management LLC increased its stake in PepsiCo by 120.7% during the third quarter. AQR Capital Management LLC now owns 5,916,417 shares of the company’s stock worth $830,902,000 after purchasing an additional 3,235,726 shares during the period. Amundi increased its stake in shares of PepsiCo by 30.0% during the third quarter. Amundi now owns 8,641,588 shares of the company’s stock worth $1,207,230,000 after buying an additional 1,995,362 shares during the period. Caisse de depot et placement du Quebec increased its stake in shares of PepsiCo by 151.7% during the third quarter. Caisse de depot et placement du Quebec now owns 2,597,986 shares of the company’s stock worth $364,861,000 after buying an additional 1,565,883 shares during the period. California Public Employees Retirement System increased its stake in shares of PepsiCo by 28.0% during the fourth quarter. California Public Employees Retirement System now owns 5,373,358 shares of the company’s stock worth $771,184,000 after buying an additional 1,174,030 shares during the period. Finally, State Street Corp increased its stake in shares of PepsiCo by 1.8% during the third quarter. State Street Corp now owns 59,499,819 shares of the company’s stock worth $8,356,155,000 after buying an additional 1,079,970 shares during the period. 73.07% of the stock is currently owned by hedge funds and other institutional investors.
PepsiCo Company Profile
PepsiCo, Inc (NASDAQ: PEP) is a multinational food and beverage company headquartered in Purchase, New York. The company develops, manufactures, markets and sells a broad portfolio of branded food and beverage products, including carbonated and noncarbonated soft drinks, bottled water, sports drinks, juices, ready-to-drink teas and coffees, salty snacks, cereals, and other convenient foods. Its leading consumer brands include Pepsi, Mountain Dew, Gatorade, Tropicana, Quaker, Lay’s, Doritos and Cheetos, among others.
Formed through the 1965 merger of Pepsi-Cola and Frito-Lay, PepsiCo has grown into a global business with integrated manufacturing, distribution and marketing operations.