PepsiCo (NASDAQ:PEP) Announces Quarterly Earnings Results

PepsiCo (NASDAQ:PEP) posted its earnings results on Thursday. The company reported $2.34 earnings per share for the quarter, beating the consensus estimate of $2.29 by $0.05, FiscalAI reports. PepsiCo had a return on equity of 53.72% and a net margin of 11.09%. The company had revenue of $25.27 billion for the quarter, compared to analyst estimates of $24.95 billion. During the same period last year, the company earned $2.29 earnings per share. The business’s revenue was up 5.6% compared to the same quarter last year. PepsiCo updated its FY 2026 guidance to 8.344-8.425 EPS.

Here are the key takeaways from PepsiCo’s conference call:

• Positive Sentiment: PepsiCo reported 3.1% organic revenue growth in Q3, with global beverage volume up 3% and food volume up 1%; international organic revenue rose 8% and operating margin expanded 105 basis points.
• Positive Sentiment: North American snacks showed improvement after the pricing reset, moving from low-single-digit volume declines last year to low-single-digit growth this year, with volume share gains and improving value share.
• Negative Sentiment: Management lowered its fourth-quarter EPS outlook because of weaker-than-expected margins, higher input costs, unfavorable mix, the expiration of a third-quarter tariff benefit, and the expected roll-off of commodity hedges.
• Negative Sentiment: PepsiCo acknowledged that North American beverages, particularly carbonated soft drinks, are underperforming; the company plans to increase brand investment and improve execution while managing ongoing cost and pricing pressures.
• Neutral Sentiment: The company is evaluating structural cost reductions, additional productivity measures, portfolio changes, and selective U.S. bottling refranchising or distribution partnerships, but will provide a fuller 2027 outlook in February.

PepsiCo Trading Down 1.8%

Shares of NASDAQ PEP opened at $125.97 on Friday. The stock has a market cap of $171.94 billion, a price-to-earnings ratio of 15.83, a P/E/G ratio of 2.98 and a beta of 0.35. PepsiCo has a twelve month low of $123.47 and a twelve month high of $171.48. The company has a quick ratio of 0.74, a current ratio of 0.93 and a debt-to-equity ratio of 1.91. The company’s fifty day moving average is $135.48 and its 200-day moving average is $143.05.

PepsiCo Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Wednesday, September 30th. Shareholders of record on Friday, September 4th were paid a $1.48 dividend. This represents a $5.92 annualized dividend and a yield of 4.7%. The ex-dividend date of this dividend was Friday, September 4th. PepsiCo’s dividend payout ratio is presently 77.59%.

Insider Activity

In related news, EVP David Flavell sold 2,900 shares of the business’s stock in a transaction that occurred on Monday, July 27th. The stock was sold at an average price of $139.54, for a total value of $404,666.00. Following the completion of the transaction, the executive vice president directly owned 74,825 shares in the company, valued at approximately $10,441,080.50. The trade was a 3.73% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. 0.12% of the stock is owned by company insiders.

Trending Headlines about PepsiCo

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: International growth, pricing gains and improving North American snack volumes helped PepsiCo exceed quarterly revenue and earnings expectations. PepsiCo Q3 Earnings and Revenues Beat Estimates on International Growth
• Positive Sentiment: UBS said the stock’s valuation discount appears difficult to justify despite the slower North American recovery, suggesting attractive risk-reward at recent levels. Pepsi Offers Attractive Risk-Reward Despite Lowered 2026 Outlook
• Positive Sentiment: PepsiCo completed a $746 million repurchase of 5 million shares, supporting per-share value and signaling continued capital returns alongside its dividend program. Is PepsiCo a Bargain Following Its Buyback?

Analyst Upgrades and Downgrades

Several analysts recently issued reports on the stock. Morgan Stanley set a $145.00 price objective on shares of PepsiCo in a report on Friday. Evercore cut their price objective on PepsiCo from $150.00 to $135.00 in a research report on Wednesday, September 30th. UBS Group dropped their target price on shares of PepsiCo from $159.00 to $145.00 and set a “buy” rating on the stock in a research report on Friday, October 2nd. TD Cowen decreased their price objective on PepsiCo from $145.00 to $133.00 and set a “hold” rating on the stock in a report on Monday, September 28th. Finally, Wells Fargo & Company decreased their price target on shares of PepsiCo from $140.00 to $135.00 and set an “equal weight” rating on the stock in a research note on Monday, October 5th. Five investment analysts have rated the stock with a Buy rating, fourteen have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of “Hold” and a consensus target price of $145.85.

About PepsiCo

PepsiCo, Inc (NASDAQ:PEP) is a global food and beverage company that develops, manufactures, markets and distributes a broad portfolio of snacks, drinks and convenient foods. Its beverage brands include Pepsi, Mountain Dew, Gatorade, 7UP in select markets, and bubly, while its food and snack brands include Lay’s, Doritos, Cheetos, Tostitos, Fritos, Quaker and Ruffles.

The company’s operations include beverage production and distribution, snack foods, convenient meals and nutrition-oriented products.