PepsiCo (NASDAQ:PEP) Issues FY 2026 Earnings Guidance

PepsiCo (NASDAQ:PEP) updated its FY 2026 earnings guidance on Tuesday. The company provided earnings per share guidance of 8.550-8.710 for the period, compared to the consensus earnings per share estimate of 8.550. The company issued revenue guidance of $97.7 billion-$99.6 billion, compared to the consensus revenue estimate of $97.1 billion.

PepsiCo Price Performance

Shares of NASDAQ:PEP traded up $1.24 on Thursday, hitting $167.42. The company’s stock had a trading volume of 3,117,880 shares, compared to its average volume of 9,082,386. PepsiCo has a 1 year low of $127.60 and a 1 year high of $168.01. The company has a debt-to-equity ratio of 2.06, a current ratio of 0.85 and a quick ratio of 0.72. The company has a market capitalization of $228.92 billion, a PE ratio of 27.85, a PEG ratio of 5.35 and a beta of 0.40. The company has a 50-day simple moving average of $146.83 and a 200 day simple moving average of $145.95.

PepsiCo (NASDAQ:PEP) last posted its quarterly earnings data on Tuesday, February 3rd. The company reported $2.26 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.24 by $0.02. PepsiCo had a net margin of 8.77% and a return on equity of 57.92%. The company had revenue of $29.34 billion during the quarter, compared to the consensus estimate of $28.96 billion. During the same period in the previous year, the firm posted $1.96 EPS. The firm’s revenue was up 5.6% compared to the same quarter last year. PepsiCo has set its FY 2026 guidance at 8.550-8.710 EPS. Sell-side analysts forecast that PepsiCo will post 8.3 EPS for the current fiscal year.

PepsiCo Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, March 31st. Stockholders of record on Friday, March 6th will be issued a dividend of $1.4225 per share. This represents a $5.69 dividend on an annualized basis and a dividend yield of 3.4%. The ex-dividend date of this dividend is Friday, March 6th. PepsiCo’s dividend payout ratio (DPR) is presently 108.17%.

PepsiCo announced that its Board of Directors has initiated a stock buyback program on Tuesday, February 3rd that authorizes the company to repurchase $10.00 billion in outstanding shares. This repurchase authorization authorizes the company to buy up to 4.7% of its stock through open market purchases. Stock repurchase programs are typically a sign that the company’s management believes its stock is undervalued.

Analysts Set New Price Targets

PEP has been the subject of a number of analyst reports. Rothschild & Co Redburn increased their price target on PepsiCo from $117.00 to $120.00 and gave the stock a “sell” rating in a research note on Monday, December 15th. UBS Group reaffirmed a “buy” rating and issued a $190.00 price target on shares of PepsiCo in a research note on Wednesday. JPMorgan Chase & Co. boosted their price objective on shares of PepsiCo from $164.00 to $176.00 and gave the company an “overweight” rating in a research report on Wednesday. Loop Capital set a $164.00 target price on shares of PepsiCo in a research report on Thursday, October 23rd. Finally, Morgan Stanley boosted their price target on PepsiCo from $165.00 to $180.00 and gave the company an “equal weight” rating in a report on Wednesday. Nine research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus price target of $167.28.

Key Headlines Impacting PepsiCo

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: Q4 results beat consensus — PepsiCo reported roughly $29.3B in revenue and $2.26 EPS, modestly topping expectations and reiterating FY2026 guidance, supporting near-term confidence in the business. PepsiCo Q4 Earnings & Revenues Beat on Strength Across Segments
• Positive Sentiment: Board authorized a $10.0 billion share repurchase program — buyback (up to ~4.7% of shares) signals management sees upside and should be accretive to EPS and shareholder returns. PepsiCo (NASDAQ:PEP) to Repurchase $10.00 billion in Shares
• Positive Sentiment: Dividend increased — board declared a quarterly dividend of $1.4225 per share (a ~5% YoY raise), supporting the stock’s income appeal (yield ~3.4%) for dividend-focused investors. PepsiCo Declares Quarterly Dividend
• Positive Sentiment: Several banks raised price targets / issued favorable notes — JPMorgan, Morgan Stanley and others lifted targets (JPMorgan to $176, Morgan Stanley to $180), which buoyed sentiment and buying interest. PepsiCo (NASDAQ:PEP) Price Target Raised to $176.00 at JPMorgan Chase & Co.
• Neutral Sentiment: Planned price cuts on key snacks — PepsiCo will reduce suggested retail prices by as much as ~15% on brands like Lay’s, Doritos and Cheetos to address affordability and boost volume; this is a strategic “price investment” that may lift sales but create near-term margin pressure. After Years of Increases, PepsiCo Pledges to Cut Prices on Snacks
• Neutral Sentiment: Analyst consensus remains mixed — the street’s average rating sits near “Hold” despite several target raises, leaving upside dependent on execution against the new price/volume strategy. PepsiCo, Inc. (NASDAQ:PEP) Given Average Rating of “Hold” by Analysts
• Negative Sentiment: Bearish takes emphasize execution and margin risk — some analysts and commentators warn the rally has been driven by multiple expansion, volumes remain soft, and price cuts may trade away margin certainty for a hoped-for volume rebound, increasing execution risk. PepsiCo’s Rally Looks Convincing, But The 15% Bet Adds Risk (Rating Downgrade)

Hedge Funds Weigh In On PepsiCo

Institutional investors and hedge funds have recently bought and sold shares of the company. Centaurus Financial Inc. increased its holdings in shares of PepsiCo by 5.9% in the 3rd quarter. Centaurus Financial Inc. now owns 4,908 shares of the company’s stock valued at $689,000 after acquiring an additional 273 shares during the period. San Luis Wealth Advisors LLC acquired a new stake in shares of PepsiCo during the third quarter worth about $276,000. Tcfg Wealth Management LLC grew its position in PepsiCo by 27.8% during the third quarter. Tcfg Wealth Management LLC now owns 5,323 shares of the company’s stock worth $748,000 after buying an additional 1,159 shares during the period. Saratoga Research & Investment Management lifted its position in shares of PepsiCo by 8.4% during the 3rd quarter. Saratoga Research & Investment Management now owns 181,505 shares of the company’s stock valued at $25,491,000 after acquiring an additional 14,070 shares during the period. Finally, Abel Hall LLC grew its holdings in shares of PepsiCo by 13.0% in the 3rd quarter. Abel Hall LLC now owns 3,876 shares of the company’s stock worth $544,000 after acquiring an additional 447 shares during the period. 73.07% of the stock is currently owned by institutional investors and hedge funds.

About PepsiCo

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.