FY2026 EPS Estimates for PepsiCo Lowered by Zacks Research

PepsiCo, Inc. (NASDAQ:PEP) – Investment analysts at Zacks Research decreased their FY2026 EPS estimates for PepsiCo in a research note issued to investors on Tuesday, February 17th. Zacks Research analyst Team now expects that the company will post earnings per share of $8.11 for the year, down from their previous estimate of $8.52. The consensus estimate for PepsiCo’s current full-year earnings is $8.30 per share.

PepsiCo (NASDAQ:PEP) last issued its quarterly earnings results on Monday, February 2nd. The company reported $2.26 EPS for the quarter, topping analysts’ consensus estimates of $2.24 by $0.02. PepsiCo had a return on equity of 57.92% and a net margin of 8.77%.The firm had revenue of $29.34 billion for the quarter, compared to analysts’ expectations of $28.96 billion. During the same period in the previous year, the firm posted $1.96 EPS. The business’s revenue for the quarter was up 5.6% compared to the same quarter last year.

PEP has been the topic of a number of other research reports. Citigroup upped their price target on shares of PepsiCo from $170.00 to $182.00 and gave the stock a “buy” rating in a research note on Wednesday, February 4th. Royal Bank Of Canada reaffirmed a “sector perform” rating and issued a $156.00 target price on shares of PepsiCo in a report on Wednesday, February 4th. Wells Fargo & Company increased their price target on shares of PepsiCo from $154.00 to $165.00 and gave the company an “equal weight” rating in a report on Wednesday, February 4th. JPMorgan Chase & Co. boosted their price objective on shares of PepsiCo from $164.00 to $176.00 and gave the stock an “overweight” rating in a report on Wednesday, February 4th. Finally, Loop Capital set a $164.00 price objective on PepsiCo in a research report on Thursday, October 23rd. Eight research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the company currently has an average rating of “Hold” and an average price target of $167.83.

PepsiCo Trading Up 0.1%

PepsiCo stock opened at $164.59 on Friday. PepsiCo has a 12 month low of $127.60 and a 12 month high of $171.48. The company has a market capitalization of $224.94 billion, a price-to-earnings ratio of 27.43, a price-to-earnings-growth ratio of 3.13 and a beta of 0.40. The business’s fifty day simple moving average is $150.96 and its two-hundred day simple moving average is $147.74. The company has a current ratio of 0.85, a quick ratio of 0.67 and a debt-to-equity ratio of 2.06.

PepsiCo Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, March 31st. Shareholders of record on Friday, March 6th will be given a $1.4225 dividend. This represents a $5.69 annualized dividend and a yield of 3.5%. The ex-dividend date of this dividend is Friday, March 6th. PepsiCo’s dividend payout ratio (DPR) is presently 94.83%.

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

Institutional Investors Weigh In On PepsiCo

Several hedge funds and other institutional investors have recently made changes to their positions in PEP. Clayton Financial Group LLC bought a new position in shares of PepsiCo during the 3rd quarter worth $872,000. Avantax Advisory Services Inc. lifted its stake in PepsiCo by 2.6% in the second quarter. Avantax Advisory Services Inc. now owns 185,961 shares of the company’s stock worth $24,554,000 after acquiring an additional 4,627 shares during the period. Kathmere Capital Management LLC grew its holdings in PepsiCo by 122.6% during the 3rd quarter. Kathmere Capital Management LLC now owns 20,365 shares of the company’s stock worth $2,860,000 after acquiring an additional 11,217 shares in the last quarter. Pinnacle Associates Ltd. increased its position in PepsiCo by 9.7% during the 2nd quarter. Pinnacle Associates Ltd. now owns 152,193 shares of the company’s stock valued at $20,096,000 after purchasing an additional 13,517 shares during the period. Finally, Invesco Ltd. raised its holdings in shares of PepsiCo by 11.7% in the 2nd quarter. Invesco Ltd. now owns 12,659,046 shares of the company’s stock valued at $1,671,500,000 after purchasing an additional 1,330,888 shares in the last quarter. Hedge funds and other institutional investors own 73.07% of the company’s stock.

PepsiCo News Roundup

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: Court win reduces legal overhang — A U.S. court granted PepsiCo and Frito‑Lay an order barring a class action over snack pricing, lowering potential litigation risk and related costs for the snacks segment. PepsiCo, Frito-Lay win US court order barring class action in snack pricing lawsuit
• Positive Sentiment: New product scale — PepsiCo’s prebiotic soda is now being rolled out nationwide, supporting innovation in higher‑margin, health‑oriented beverages that can drive category growth and mix improvement. PepsiCo’s prebiotic soda is now nationwide. Here’s what it is
• Positive Sentiment: Marketing / distribution boost — Mountain Dew Baja Blast named the official soft drink of MLB increases brand visibility and seasonally relevant demand opportunities for the beverage portfolio. PepsiCo’s Mountain Dew Baja Blast becomes official soft drink of MLB
• Positive Sentiment: Portfolio transformation toward health & fiber — Management is investing in fiber snacks, hydration and functional beverages (prebiotic cola, fiber snacks) and experimenting with creator‑led product launches aimed at Gen Z — initiatives that support long‑term growth and margin expansion if successful. PepsiCo plays ‘offense’ to transform portfolio for health-conscious consumers
• Positive Sentiment: Dividend reliability — Recent quarterly dividend payment continues PepsiCo’s long track record of increases, supporting appeal to income investors. Retirees Are Quietly Accumulating This 8% Dividend Grower With a Half-Century of Increases
• Neutral Sentiment: Analyst rating update — Argus moved PepsiCo to a “hold” (from a lower or different stance), a minor near‑term signal but not a major catalyst. Zacks / Argus coverage
• Neutral Sentiment: Investor presentation content — PepsiCo’s CAGNY presentation and related slides reiterated strategy (innovation, mix shift), offering transparency but no immediate new guidance. PepsiCo Presents at CAGNY Conference — Transcript
• Negative Sentiment: Analyst cuts to near‑term EPS — Zacks Research lowered multiple quarterly and full‑year EPS estimates across 2026–2027, which can pressure sentiment if investors focus on near‑term earnings revisions despite strategic growth initiatives. Zacks Research: EPS estimate reductions

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.