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 (EPS) guidance of 8.550-8.710 for the period, compared to the consensus 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 Stock Up 1.0%

PEP opened at $155.20 on Tuesday. The company has a 50-day moving average price of $146.13 and a 200 day moving average price of $145.67. PepsiCo has a twelve month low of $127.60 and a twelve month high of $160.15. The company has a quick ratio of 0.72, a current ratio of 0.91 and a debt-to-equity ratio of 2.26. The company has a market cap of $212.21 billion, a PE ratio of 29.51, a price-to-earnings-growth ratio of 5.05 and a beta of 0.40.

PepsiCo (NASDAQ:PEP) last announced its earnings results on Tuesday, February 3rd. The company reported $2.26 EPS for the quarter, beating analysts’ consensus estimates of $2.24 by $0.02. The company had revenue of $29.34 billion during the quarter, compared to analysts’ expectations of $28.96 billion. PepsiCo had a return on equity of 57.58% and a net margin of 7.82%.PepsiCo’s revenue for the quarter was up 5.6% on a year-over-year basis. During the same period last year, the business posted $1.96 EPS. PepsiCo has set its FY 2026 guidance at 8.550-8.710 EPS. Sell-side analysts expect that PepsiCo will post 8.3 earnings per share for the current fiscal year.

PepsiCo Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Tuesday, January 6th. Shareholders of record on Friday, December 5th were issued a dividend of $1.4225 per share. This represents a $5.69 annualized dividend and a yield of 3.7%. The ex-dividend date was Friday, December 5th. PepsiCo’s dividend payout ratio (DPR) is 108.17%.

Wall Street Analysts Forecast Growth

A number of research analysts have commented on PEP shares. Barclays set a $148.00 price objective on PepsiCo in a research note on Friday, January 16th. Rothschild & Co Redburn boosted their price target on PepsiCo from $117.00 to $120.00 and gave the stock a “sell” rating in a research report on Monday, December 15th. Bank of America upped their price target on PepsiCo from $150.00 to $155.00 and gave the stock a “neutral” rating in a report on Friday, October 10th. UBS Group dropped their price objective on shares of PepsiCo from $172.00 to $170.00 and set a “buy” rating on the stock in a research note on Wednesday, January 14th. Finally, Piper Sandler upped their target price on shares of PepsiCo from $161.00 to $172.00 and gave the company an “overweight” rating in a research note on Tuesday, December 9th. One research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating, ten have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus price target of $159.29.

Trending Headlines about PepsiCo

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: Q4 results beat expectations — PepsiCo reported $2.26 EPS (vs. $2.24 est.) and revenue of $29.34B (vs. ~$28.96B est.), driven by pricing and productivity that offset softer volumes; management reiterated its FY2026 outlook. Press Release
• Positive Sentiment: Capital return boost — PepsiCo raised its dividend and authorized up to $10 billion in share buybacks, supporting EPS per-share prospects and returning cash to shareholders. RTT News: Dividend & Buyback
• Positive Sentiment: Product/market pockets showing resilience — international soda demand and U.S. low‑sugar beverages were cited as growth drivers, helping revenue outperformance. Reuters: Resilient Sodas
• Neutral Sentiment: Revenue gains were largely price-driven — management said price increases and productivity offset falling demand for snacks and drinks, a positive near-term margin lever but a warning sign on volume momentum. Yahoo Finance: Price Hikes Offset Demand
• Neutral Sentiment: Analyst and market positioning ahead of the print fueled volatility — several previews and analyst note updates raised expectations into the release, increasing sensitivity to forward guidance and margin signals. Benzinga: Analyst Forecasts
• Negative Sentiment: Price-cut announcement for snacks — WSJ reports PepsiCo will cut prices on Doritos and other snacks to deliver “more value,” a strategic move to regain volume that could pressure margins if sustained. WSJ: Price Cuts for Snacks

Hedge Funds Weigh In On PepsiCo

A number of hedge funds and other institutional investors have recently made changes to their positions in PEP. AQR Capital Management LLC increased its position 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 buying an additional 3,235,726 shares during the last quarter. Amundi increased its holdings in shares of PepsiCo by 30.0% during the 3rd quarter. Amundi now owns 8,641,588 shares of the company’s stock worth $1,207,230,000 after acquiring an additional 1,995,362 shares during the last quarter. Caisse de depot et placement du Quebec raised its stake in PepsiCo by 151.7% in the 3rd quarter. Caisse de depot et placement du Quebec now owns 2,597,986 shares of the company’s stock valued at $364,861,000 after acquiring an additional 1,565,883 shares during the period. State Street Corp boosted its position in 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 purchasing an additional 1,079,970 shares during the period. Finally, CANADA LIFE ASSURANCE Co increased its holdings in shares of PepsiCo by 16.9% in the second quarter. CANADA LIFE ASSURANCE Co now owns 2,343,335 shares of the company’s stock valued at $309,825,000 after purchasing an additional 338,332 shares during the last quarter. 73.07% of the stock is owned by 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.