PepsiCo (NASDAQ:PEP) Issues Earnings Results

PepsiCo (NASDAQ:PEP) issued its quarterly earnings results on Tuesday. The company reported $2.26 earnings per share for the quarter, topping the consensus estimate of $2.24 by $0.02, FiscalAI reports. PepsiCo had a return on equity of 57.92% and a net margin of 8.77%.The firm had revenue of $29.34 billion during the quarter, compared to the consensus estimate of $28.96 billion. During the same period last year, the company earned $1.96 earnings per share. The company’s revenue for the quarter was up 5.6% on a year-over-year basis. PepsiCo updated its FY 2026 guidance to 8.550-8.710 EPS.

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

• PepsiCo will accelerate affordability initiatives in Frito‑Lay North America, expecting PFMA to deliver volume, net‑revenue and operating‑margin growth this year funded by productivity gains that are included in guidance.
• Management expects double‑digit shelf‑space gains across main‑aisle and perimeter resets beginning in March/April, which should increase throughput and amplify the impact of price investments.
• The company is relaunching and innovating major brands (Lay’s, Tostitos, Gatorade, Quaker) and turning acquisitions (Siete, Poppi, Alani Nu) into organic growth contributors, which management says will accelerate sales in the second half.
• Early tests combining food and beverage distribution (Texas, Florida) show initial cost efficiencies and improved customer service, and PepsiCo plans to scale and disclose more details later in the year.
• Management expects broader GLP‑1 adoption is likely but believes there are more opportunities than threats, planning to mitigate demand shifts via portion control, hydration and fiber innovations and reformulations.

PepsiCo Trading Up 2.0%

Shares of NASDAQ PEP opened at $166.18 on Thursday. The company has a current ratio of 0.85, a quick ratio of 0.72 and a debt-to-equity ratio of 2.06. PepsiCo has a one year low of $127.60 and a one year high of $167.94. The business has a 50-day moving average price of $146.83 and a two-hundred day moving average price of $145.95. The firm has a market capitalization of $227.22 billion, a PE ratio of 27.70, a PEG ratio of 5.35 and a beta of 0.40.

PepsiCo Announces Dividend

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

PepsiCo announced that its Board of Directors has initiated a stock repurchase program on Tuesday, February 3rd that allows the company to repurchase $10.00 billion in shares. This repurchase authorization allows the company to purchase up to 4.7% of its shares through open market purchases. Shares repurchase programs are generally an indication that the company’s management believes its shares are undervalued.

PepsiCo News Roundup

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: Q4 beat and reiterated FY‑2026 outlook — PepsiCo reported Q4 EPS and revenue above estimates and kept its FY26 guidance, supporting confidence in near-term execution. Q4 Earnings Beat
• Positive Sentiment: $10 billion buyback — The board approved a $10B repurchase program (~4.7% of shares), a capital-return signal that often supports share prices. Share Repurchase
• Positive Sentiment: Dividend hike & formal declaration — Board raised the dividend (quarterly $1.4225; ~3.4% yield), reinforcing income appeal to dividend-oriented investors. Dividend Announcement
• Positive Sentiment: Analyst upside/target raises — Multiple firms raised targets (JPMorgan to $176, Morgan Stanley to $180 and others), lifting sentiment and supporting the rally. JPMorgan Raise Morgan Stanley Raise Barclays/TD Cowen
• Neutral Sentiment: Strategic moves and activist spotlight — Elliott Management’s involvement and PepsiCo’s focus on fewer SKUs, healthier SKUs and integrated distribution are long-term positives but execution is ongoing. MarketBeat Strategic Summary
• Neutral Sentiment: Mixed analyst stance — Consensus remains near “hold” with an average target roughly in line with the stock; upgrades are balanced by some cautionary views. Analyst Ratings
• Negative Sentiment: Price cuts risk margins — Pepsi’s U.S. suggested‑retail price cuts on Lay’s, Doritos, Cheetos (up to 15%) to address affordability could compress margins before any volume recovery. Price Cuts
• Negative Sentiment: Bear cases about execution and valuation — Some analysts and commentators warn the rally is driven by multiple expansion, volumes remain weak (GLP‑1 impact cited), and price-led growth raises execution risk. Seeking Alpha Critique

Analyst Upgrades and Downgrades

A number of analysts recently weighed in on PEP shares. Wall Street Zen downgraded PepsiCo from a “buy” rating to a “hold” rating in a research note on Saturday, December 27th. Weiss Ratings reiterated a “hold (c)” rating on shares of PepsiCo in a research report on Friday, January 9th. DZ Bank upgraded shares of PepsiCo from a “hold” rating to a “buy” rating and set a $167.00 target price for the company in a research report on Tuesday, October 21st. Royal Bank Of Canada reissued a “sector perform” rating and set a $156.00 price objective on shares of PepsiCo in a research note on Wednesday. Finally, Rothschild & Co Redburn upped their target price on PepsiCo from $117.00 to $120.00 and gave the company a “sell” rating in a research note on Monday, December 15th. Nine equities research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of “Hold” and a consensus price target of $165.28.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in the stock. AQR Capital Management LLC boosted its stake in shares of PepsiCo by 120.7% during the 3rd quarter. AQR Capital Management LLC now owns 5,916,417 shares of the company’s stock valued at $830,902,000 after buying an additional 3,235,726 shares during the period. Amundi raised its holdings 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 acquiring an additional 1,995,362 shares in the last quarter. Caisse de depot et placement du Quebec boosted its position in 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 valued at $364,861,000 after purchasing an additional 1,565,883 shares during the last quarter. State Street Corp grew its stake in PepsiCo by 1.8% in the third quarter. State Street Corp now owns 59,499,819 shares of the company’s stock valued at $8,356,155,000 after purchasing an additional 1,079,970 shares in the last quarter. Finally, CANADA LIFE ASSURANCE Co increased its position in PepsiCo by 16.9% in the 2nd quarter. CANADA LIFE ASSURANCE Co now owns 2,343,335 shares of the company’s stock worth $309,825,000 after purchasing an additional 338,332 shares during the last quarter. Institutional investors and hedge funds own 73.07% of the company’s stock.

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.