PepsiCo oživuje Lay’s, Tostitos a Gatorade novými vizuály a jasnějším sdělením, aby oslovila cenově citlivé spotřebitele. V Severní Americe jí ve druhém čtvrtletí roku 2026 organické tržby klesly o 0,5 % a organický objem nápojů o 4 %.
Key Takeaways PepsiCo is refreshing Lay's, Tostitos and Gatorade with new visuals and clearer messaging.PepsiCo is expanding protein, fiber, hydration, zero-sugar and alternative-oil offerings.PepsiCo saw North America organic revenues fall 0.5% in Q2, while beverage organic volume dropped 4%. PepsiCo Inc. (PEP - Free Report) is stepping up efforts to refresh its portfolio as changing consumer preferences and tighter household budgets reshape demand, particularly in North America. The company’s strategy combines brand restaging, product innovation, affordability initiatives and sharper marketing to reconnect with consumers.
A major element is modernizing established brands. PepsiCo is restaging Lay’s and Tostitos with new visuals and messaging centered on simple, quality ingredients, while a Quaker refresh is planned. Gatorade is also receiving simplified packaging and clearer communication around hydration benefits, alongside the gradual removal of artificial colors. Lay’s, meanwhile, is being repositioned across international markets with new visuals and an emphasis on no artificial flavors or colors.
The refresh extends beyond packaging. PepsiCo is expanding products aligned with protein, fiber, hydration, diverse ingredients and zero sugar. In foods, innovations include Doritos Protein, SunChips Fiber and products made with alternative oils. These moves appear to be gaining traction: PepsiCo Foods North America improved volume share and household penetration, while permissible offerings, such as Baked, Simply, SunChips, Siete and Quaker Rice Cakes, posted strong volume and revenue growth.
Still, winning consumers back may take time. North America organic revenues declined 0.5% in the second quarter of 2026 as category performance moderated, while beverage organic volume fell 4%. With consumer budgets under pressure, PepsiCo’s refresh looks directionally promising, but its success will depend on whether stronger brands, innovation and affordability can translate into sustained North American volume growth.
How Peer Brand Strategies at Keurig Dr Pepper & Coca-Cola Are EvolvingKeurig Dr Pepper Inc. (KDP - Free Report) and The Coca-Cola Company (KO - Free Report) are evolving their brand strategies by sharpening portfolio priorities, expanding into high-growth beverage categories and leveraging innovation to keep pace with shifting consumer preferences.
Keurig Dr Pepper is sharpening its brand playbook as consumers grow increasingly value-conscious. C4’s packaging refresh, featuring clearer benefit communication and bolder flavor cues, is already driving double-digit sales lift in select markets. Meanwhile, Keurig’s “Great Coffee Without the Grind” campaign helped brewer shipments return to growth. Yet, with U.S. Coffee volumes pressured by category softness and private-label shifts, sustained marketing, innovation and value investments remain critical to winning consumers back.
PepsiCo is refreshing key brands to reconnect with value-conscious consumers amid softer North American demand. Lay’s and Tostitos are getting new visuals and simpler-ingredient messaging, while Gatorade is being restaged with simplified packaging and sharper hydration claims. PepsiCo is pairing these moves with affordability initiatives and higher marketing investment. Early household-penetration gains in foods are encouraging, though subdued beverage volumes suggest a consumer comeback may remain gradual.
PEP’s Price Performance, Valuation & EstimatesShares of PepsiCo have lost 5.6% in the past three months against the industry’s rise of 3.4%.
Image Source: Zacks Investment Research
From a valuation standpoint, PEP trades at a forward price-to-earnings ratio of 15.93X, below the industry’s average of 19.66X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for PEP’s 2026 and 2027 earnings implies year-over-year growth of 5.4% and 5.3%, respectively. The company’s EPS estimates for 2026 and 2027 have moved southward in the past 30 days.
PepsiCo (NASDAQ:PEP | PEP Price Prediction) has become one of the most reliable income machines on the market, with a compelling setup heading into the back half of 2026. With shares trading at $138.08 and the payout streak now stretching to 54 consecutive years, the stock offers a rare combination of income durability and mean-reversion upside from a compressed multiple.
Our 24/7 Wall St. price target for PepsiCo is $159.13, implying 15.25% upside over the next 12 months. The recommendation is buy with a 90% confidence level. The reset multiple, 4% dividend hike, and reaccelerating organic volume have shifted the risk/reward in shareholders’ favor.
24/7 Wall St. Price Target Summary Metric Value Current Price $138.08 24/7 Wall St. Price Target $159.13 Upside 15.25% Recommendation BUY Confidence Level 90% A Dividend Hike, A Volume Recovery, and A Reset Multiple PepsiCo is roughly flat over one week (-0.5%), up 0.75% over the past month, and down 1.69% YTD. Shares sit 8% below the 52-week high of $168.19 and above the 52-week low of $133.40.
The Q2 FY26 report on July 8, 2026 delivered core EPS of $2.20 on revenue of $24.181 billion, up 6.4% YoY. CEO Ramon Laguarta noted that Latin America Foods grew 15% and EMEA grew 10%, offsetting a -2% result in PepsiCo Foods North America.
The Case for $167+ Bulls point to the FY26 guide: 2-4% organic revenue growth, 4-6% core constant currency EPS growth, and $8.9 billion in total shareholder returns split between $7.9 billion in dividends and $1 billion in buybacks.
The board authorized a fresh $10 billion repurchase program through February 28, 2030. The bull case scenario points to $167.76, a 21.49% total return, if international momentum sustains and PFNA volumes stabilize.
The Risks Worth Watching PFNA volume and pricing pressure remain the biggest overhang, with the segment down 2% in Q2. Consumer affordability, tariff-driven commodity costs, and a global minimum tax hit to EPS sit on the risk ledger.
Insider activity has been net selling. The bear case scenario still lands at $147.41, a 6.76% return, meaning even a soft outcome pays shareholders to wait.
How PepsiCo Compares to Coca-Cola and Keurig Dr Pepper Coca-Cola (NYSE:KO) offers the cleanest valuation contrast. Coca-Cola trades at a trailing P/E of 26 and forward P/E of 26, with a 2.39% dividend yield. PepsiCo trades at a trailing P/E of just 18 with a 4.13% yield. Same sector, similar defensiveness, meaningfully cheaper multiple. That gap makes our $159.13 target look conservative.
Keurig Dr Pepper (NASDAQ:KDP) offers growth exposure. Keurig Dr Pepper is guiding to low-double-digit constant currency EPS growth on the JDE Peet’s deal, with a market cap of $39.8 billion. But that comes with a 4.4x pro-forma leverage ratio and separation execution risk in early 2027. PEP’s leverage sits at a cleaner 2.31x Net Debt/EBITDA.
Company Trailing P/E Dividend Yield PepsiCo 18 4.13% Coca-Cola 26 2.39% Keurig Dr Pepper N/A N/A PepsiCo Price Projection 2026 to 2030 My verdict is a buy. The 24/7 Wall St. price target of $159.13 with 90% confidence rests on a simple thesis: you are paying a discounted multiple for a business generating $8.9 billion in annual shareholder returns while volumes reaccelerate internationally.
The setup looks constructive if PFNA volumes stabilize by Q4. The thesis weakens if organic revenue growth slips below the guided 2% floor. Given the streak, the yield, and the reset multiple, the setup favors patient capital.
Looking ahead, here is where our model projects PEP could trade, assuming current trajectories hold.
Year 24/7 Wall St. Price Target 2026 $159 2027 $172 2028 $188 2029 $203 2030 $219 These projections assume PepsiCo continues its 4% to 6% EPS growth trajectory and maintains its dividend aristocrat discipline. Significant upside or downside could come from a faster PFNA volume recovery or an escalation in commodity tariffs.
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PepsiCo testuje továrny v digitálním dvojčeti Siemensu a Nvidie, aby před fyzickou expanzí našla skrytou kapacitu. V prvních lokalitách to zvýšilo průchodnost o 20 % a odhalilo až 90 % problémů s návrhem.
Before PepsiCo spends money physically expanding a plant, it builds a digital twin of that plant first. Using Siemens’ Digital Twin Composer and running on Nvidia’s Omniverse platform, PepsiCo recreates every machine, conveyor, pallet route and operator path inside a facility. Artificial intelligence (AI) agents then simulate, test and refine changes to that layout before a single physical modification is made, the company said in a January post on its website.
The early results are already measurable. At initial deployment sites, the approach increased throughput by 20% and identified up to 90% of potential design issues before any physical changes occurred, PepsiCo said. PepsiCo estimates the approach can reduce capital expenditure by 10% to 15% by uncovering capacity that already exists inside a facility rather than building new capacity to solve the same problem. “The scale and complexity of PepsiCo’s business, from farm to shelf, is massive, and we are embedding AI throughout our operations to better meet the increasing demands of our consumers and customers,” PepsiCo Chairman and CEO Ramon Laguarta said.
12-Week Pilot Replaced Months of Traditional Facility Planning The clearest example of what the technology can do came from a 12-week pilot that combined two brownfield manufacturing sites. One ran PepsiCo’s beverage business, the other ran snacks, and the two had always operated separately. “We wanted to bring those businesses together to unlock velocity, efficiencies, capacity,” Steve Hoinka, PepsiCo’s vice president, global manufacturing strategy and transformation, said at Siemens’ Realize LIVE Americas 2026 conference. The challenge, he said, was removing part of one warehouse, sending product straight into a new mixing center, and figuring out whether the combined site could handle new production or packaging without building anything new.
Testing that setup would normally take months. Using the Siemens-Nvidia platform, PepsiCo ran thousands of configuration scenarios in just 12 weeks, all before spending a dollar on concrete, steel or equipment.
Manufacturers Are Treating Simulation as a Capital-Planning Tool PepsiCo’s framing reflects a broader shift in how large manufacturers approach capacity decisions. Athina Kanioura, CEO of PepsiCo Latin America and the company’s global chief strategy and transformation officer, described the ambition as building toward “a world where every plant and warehouse operates as part of a single, intelligent ecosystem,” where facilities “don’t just respond to demand, they anticipate and then adapt to it,” according to the press release announcing the partnership announcement. Nvidia Founder and CEO Jensen Huang framed the shift in an industry-wide lens. “Physical industries are entering the age of AI,” Huang said. “For companies with real-world assets, digital twins are the foundation of their AI journey.”
The pilots remain limited to select U.S. facilities, with plans to scale globally as the technology matures. What distinguishes this use case from most AI deployments in manufacturing is that the return is measured not in labor saved, but in avoided capital expenditure.
A traditional expansion assumes a company needs new physical assets to hit a capacity target. PepsiCo’s bet is that a meaningful share of that capacity already exists inside the facilities it owns, and that AI is now precise enough to find it before the shovel breaks ground.
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PepsiCo uvádí, že jeho cenová a balíčková strategie pomohla vrátit americké slané snacky k růstu objemu a znovu získat podíl na trhu. Firma čeká další podporu objemů ve druhé polovině roku 2026.
Key Takeaways PepsiCo's affordability moves helped U.S. salty snacks return to positive volume growth.Smaller packs, value multipacks and targeted promotions are improving consumer accessibility.Shelf-space gains and stronger Away From Home distribution may support second-half 2026 volumes. PepsiCo, Inc.’s (PEP - Free Report) aggressive price-pack architecture (PPA) strategy appears to be laying the groundwork for a volume recovery, though the full benefits are likely to unfold gradually through the remainder of 2026. Facing a value-conscious consumer amid persistent inflationary pressures, the company has expanded affordability initiatives by offering more accessible price points, smaller pack sizes and value-oriented multipacks. Management highlighted that these investments helped return its U.S. salty snacks category to positive volume growth and enabled the company to regain volume share, marking a significant turnaround after a period of declines.
PepsiCo’s strategy extends beyond simply lowering prices. Management emphasized that affordability is being paired with growth in its permissible portfolio and portion-control offerings, which are resonating well with consumers. The company is now refining its price-pack investments by channel and customer to maximize returns while tailoring promotions for everyday-low-price and high-low retail formats. Executives also noted that opening price points for multipacks and variety packs has generated encouraging results, suggesting that a more targeted execution of its price-pack architecture could further stimulate demand as consumer spending stabilizes.
While macroeconomic pressures, particularly elevated gasoline prices, continue to weigh on impulse purchases in convenience channels, PepsiCo remains confident that optimizing its pricing investments, expanding shelf space and strengthening Away From Home distribution will support stronger volume trends in the second half of 2026 and into 2027. Management stressed that the objective is not deeper discounting but generating higher volumes through smarter deployment of trade investments and customer-specific promotions. If consumer spending improves and the company successfully fine-tunes its price-pack strategy, these initiatives could serve as a meaningful catalyst for sustained volume growth.
How PepsiCo Stacks Up Against Keurig Dr Pepper and Coca-ColaHere's how PepsiCo's affordability and price-pack strategy compares with the initiatives undertaken by Keurig Dr Pepper Inc. (KDP - Free Report) and The Coca-Cola Company (KO - Free Report) to drive consumer demand and support volume growth.
Keurig Dr Pepper has also sharpened its focus on affordability and price-pack architecture to protect volumes in a challenging consumer environment. The company continues to expand its mix of value-oriented multipacks, single-serve offerings and premium innovations across its beverage portfolio, enabling it to cater to different consumer budgets while sustaining category participation. Coupled with strong execution in its coffee and cold beverage businesses, these initiatives are expected to support steady volume growth and market share gains, even as consumers remain selective with discretionary spending.
Coca-Cola has been leveraging its revenue growth management strategy, including affordable package sizes and returnable packaging, to balance pricing with consumer accessibility. The company continues to tailor its price-pack architecture across markets, offering smaller packs for value-conscious consumers while maintaining premium offerings for higher-income segments. Supported by its extensive distribution network and resilient brand portfolio, Coca-Cola remains well-positioned to drive transaction growth and sustain volumes despite ongoing macroeconomic pressures.
PEP’s Price Performance, Valuation & EstimatesShares of PepsiCo have lost 11.2% in the past three months against the industry’s rise of 4.4%.
Image Source: Zacks Investment Research
From a valuation standpoint, PEP trades at a forward price-to-earnings ratio of 15.72X, below the industry’s average of 19.51X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for PEP’s 2026 and 2027 earnings implies year-over-year growth of 5.3% and 4.9%, respectively. The company’s EPS estimates for 2026 and 2027 have moved southward in the past 30 days.
Coca-Cola ve 2. čtvrtletí zvýšila globální prodej Zero Sugar o 16 % a celkový objem o 5 %, zatímco PepsiCo v Severní Americe zaznamenala pokles objemu nápojů o 4 %.
For years, both Coca-Cola (KO -0.49%) and PepsiCo (PEP -0.74%) talked about the same shift: Consumers were pulling back from sugar and reaching for lighter, healthier drinks. Seeing a trend and getting ahead of it are two very different things, though. And the latest quarter makes clear that only one of these giants actually did the hard work early. And it's not close.
Coca-Cola got out in front The proof is in Coke's second-quarter results, and it runs right through its zero-sugar lineup. Coca-Cola Zero Sugar grew 16% globally, and not in one lucky region but across every geographic segment. Diet Coke and Coca-Cola Light added another 7%, led by North America and Asia. This is not a fluke. It is the payoff from investing earlier, more broadly, and more inventively in sugar-free and functional drinks.
Image source: Getty Images.
You can see that same instinct in what Coke is launching. It's rolling out Coca-Cola Zero Zero, a drink with zero sugar, zero calories, and zero caffeine, across Asia and Latin America. It introduced Bodyarmor Fit, a zero-sugar sparkling sports drink with electrolytes. Powerade volume jumped 8%. All that innovation helped drive a full 5% volume gain and 6% organic revenue growth for the quarter.
PepsiCo got caught flat-footed Pepsi's quarter told the opposite story. Its North American beverage volume fell 4%, and its North American food business saw organic revenue slip 2%. Core operating margin contracted to 16.8%, and overall organic revenue grew just 2.4%, well behind Coke's 6%.
The language from management was just as telling as the numbers. Pepsi cited the need to "restate certain global brands" and to invest in "affordability initiatives." Translated, that signals brand fatigue and pricing pressure, a company repositioning and discounting to win back shoppers rather than leading them somewhere new. Tellingly, Pepsi merely affirmed its full-year guidance instead of raising it. When one rival is accelerating and the other is playing defense, the gap speaks for itself.
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But is Coke's edge already priced in? Here's where it gets interesting for investors, because the market isn't blind. Everyone can see that Coke is winning, and the stock reflects it. Coca-Cola trades at a clear premium to PepsiCo, while Pepsi sits at a cheaper valuation with a noticeably higher dividend yield. So the real question is not which company is executing better, since that is plainly Coke. It's whether you're paying up for a story the whole market already knows.
That premium is the catch. A lot of Coke's operational edge is arguably baked into its price, which can mute future upside even if the business keeps humming. Pepsi, meanwhile, is the classic beaten-down value setup: cheaper, higher-yielding, and pushed by activist investors to fix its brands and sharpen its snacks and pricing. If that turnaround gains traction, the room for a positive surprise is larger simply because expectations are lower.
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My honest read is that these two stocks suit two different investors. Coca-Cola is the higher-quality business, clearly winning the health shift, and it deserves a premium, though that premium means you're buying momentum near full price rather than a bargain. PepsiCo is the cheaper, higher-income, higher-risk bet on a recovery that hasn't yet shown up in the numbers.
If I had to choose one to buy today, I would lean toward Coca-Cola, because paying a fair price for the clear winner of a durable trend tends to beat gambling on a laggard's fix. But I wouldn't dismiss Pepsi. Its low price and fat yield mean it doesn't need to win the health race to reward patient investors; it just needs to stop losing it. The trend is real, and for now, only Coke has truly gotten ahead of it.
PepsiCo potvrdila výhled na rok 2026: organické tržby mají růst o 2–4 % a core EPS o 5–7 %. Mezinárodní organické tržby vzrostly o 7 %, zatímco v Severní Americe klesly o 0,5 %.
Key Takeaways PepsiCo's international organic revenue rose 7%, extending mid-single-digit growth to 21 quarters.PepsiCo reaffirmed 2026 organic revenue growth of 2-4% and core EPS growth of 5-7%.PepsiCo's North America organic revenue fell 0.5% as affordability and cost pressures persisted. PepsiCo Inc. (PEP - Free Report) enters the second half of 2026 with durable global brands, better international volumes and reaffirmed financial guidance.
The investment debate is more balanced in North America, where soft demand, affordability spending and input-cost pressure continue to test near-term execution.
PepsiCo Builds on a Diversified Global PortfolioPepsiCo operates in more than 200 countries and territories with a portfolio that spans beverages and convenient foods. Its brands include Pepsi, Gatorade, Lay’s, Doritos, Cheetos, Quaker and Mountain Dew, giving the company multiple demand channels across daily consumption occasions.
Its six reporting segments further reduce reliance on one geography or category. PepsiCo Foods North America and PepsiCo Beverages North America cover the United States and Canada, while International Beverages Franchise, Europe, the Middle East and Africa, Latin America Foods and Asia Pacific Foods broaden the growth base.
The Coca-Cola Company (KO - Free Report) remains a relevant benchmark because it also sells beverages in more than 200 countries and territories. Keurig Dr Pepper Inc. (KDP - Free Report) , with its North American beverage portfolio and distribution network, offers another comparison point for investors tracking category demand and flavor innovation.
PEP Leans on International Markets for GrowthInternational markets were PepsiCo’s clearest growth engine in the second quarter of 2026. International organic revenue increased 7%, marking the 21st consecutive quarter of at least mid-single-digit organic revenue growth.
The strength was broad based. International Beverages Franchise organic revenues rose 9%, Europe, the Middle East and Africa grew 6%, Latin America Foods increased 4% and Asia Pacific Foods advanced 9%. Asia Pacific Foods also delivered 10% organic volume growth, the strongest volume performance among the reported segments.
PepsiCo Uses Productivity to Support EarningsPepsiCo’s second-quarter net revenues rose 6.4% to $24.18 billion, while organic revenues increased 2.4%. Core operating profit increased 4% and core earnings per share grew 4%, showing that productivity and pricing helped support earnings despite a tougher cost environment.
Automation, digitalization and supply-chain simplification remain central to that support. These initiatives are intended to offset inflation, help fund brand investment and preserve flexibility as management expects higher input-cost inflation in the second half of 2026.
PEP Balances Innovation With AffordabilityPepsiCo is expanding in functional hydration, protein offerings, zero-sugar beverages, permissible snacks and portion-control formats. These categories align with consumer demand for better-for-you choices while allowing the company to refresh established brands.
Affordability is the other side of the strategy. PepsiCo is using price-pack adjustments and spending behind value-oriented offerings to reach budget-conscious consumers, especially in North America. That focus helped convenient foods gain volume share, but the region still showed softer financial trends.
PepsiCo’s Signals Point to Near-Term CautionPepsiCo’s long-term global strengths remain visible, but the stock’s near-term setup is cautious. North America organic revenue declined 0.5% in the second quarter, PepsiCo Foods North America revenues fell 2%, and PepsiCo Beverages North America organic growth was only 1% despite reported revenue growth of 7%.
The company reaffirmed its 2026 outlook for organic revenue growth of 2-4% and reported net revenue growth of 4-6%. Core constant-currency earnings per share are expected to increase 4-6%, while core earnings per share are expected to rise 5-7%. Still, earnings growth is expected to be weighted toward the fourth quarter, which raises execution risk.
The stock currently carries a Zacks Rank #4 (Sell). That rank points to unfavorable earnings estimate revision trends over the next one to three months and supports caution for investors focused on near-term stock selection.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
PepsiCo also has a Value Score of C, Growth Score of C, Momentum Score of F and VGM Score of C. These scores suggest a middle-ground valuation and growth profile, while the weak momentum reading reinforces the more cautious near-term signal despite PepsiCo’s durable global brand base.
PepsiCo po výsledcích za 2. čtvrtletí čelí tlaku na marže a slabšímu růstu v Severní Americe, i když dál počítá s vysokými výnosy pro akcionáře. Společnost v roce 2026 očekává návrat 8,9 mld. USD, z toho 7,9 mld. USD na dividendách.
Key Takeaways PepsiCo trades below key benchmarks, with a $151 target versus a recent price of $142.86.PepsiCo plans $8.9 billion in 2026 shareholder returns, including $7.9 billion in dividends.PEP faces margin compression, North American softness and combined debt above $53 billion. PepsiCo Inc. (PEP - Free Report) offers investors a familiar but mixed setup after its second-quarter 2026 results. The stock trades below several valuation benchmarks and carries a dividend yield above 4%, while international demand remains a stabilizing force.
The debate is whether that support is enough. Softer North American trends, margin pressure, high debt and negative estimate revisions keep the investment case from looking broadly favorable.
PEP Trades Below Key Historical Valuation LevelsPepsiCo is trading at 16.2X forward 12-month earnings, below the soft-drink sub-industry multiple of 19.98X and the S&P 500 multiple of 20.11X. It also sits below its five-year median of 20.75X, suggesting the market is already discounting slower near-term momentum.
The $151 price target compares with the recent stock price of $142.86. That spread points to measured upside rather than a deep-value setup. The Coca-Cola Company (KO - Free Report) remains a relevant beverage benchmark, while Keurig Dr Pepper Inc. (KDP - Free Report) gives investors another North American beverage comparison when assessing category demand and valuation.
Image Source: Zacks Investment Research
PepsiCo Sustains Cash Returns to ShareholdersPepsiCo still offers a meaningful income component. The company expects to return $8.9 billion to shareholders in 2026, including $7.9 billion in dividends and $1 billion in share repurchases.
The annualized dividend rose to $5.92 per share from $5.69 per share, effective with the June 2026 payment. Management also continues to target free cash flow conversion of at least 80%, which supports the dividend program while leaving room for business reinvestment.
Image Source: Zacks Investment Research
PEP Faces Margin and Debt PressuresSecond-quarter profitability showed the pressure behind the headline earnings beat. Core gross margin declined to 54.3% from 55.1%, while core operating margin contracted 40 basis points to 16.8%.
Productivity savings and pricing helped, but affordability investments, higher operating costs and inflation limited margin leverage. Debt also remains a constraint, with short-term obligations of $10.6 billion and long-term debt of $42.6 billion at quarter-end, pushing combined debt above $53 billion.
PepsiCo’s Estimates Show Modest GrowthCurrent projections call for 2026 revenues of about $98.8 billion, up from $93.93 billion in 2025. Earnings are projected at $8.56 per share, compared with $8.14 in 2025.
Those forecasts still show growth, but estimate direction is less supportive. The current fiscal-year earnings estimate declined 0.5% over the past four weeks, indicating weaker near-term earnings conviction despite second-quarter revenue and earnings growth.
PEP’s Scores Temper the Value CaseThe bottom line is balanced. PepsiCo’s lower earnings multiple, cash returns and international resilience give the stock some defensive appeal, but margin compression and North American softness reduce the case for aggressive buying.
The stock currently carries a Zacks Rank #4 (Sell), which reflects unfavorable earnings-estimate revision trends. That rank is especially important because the Zacks Rank is designed to capture near-term estimate momentum.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
PepsiCo’s Style Scores also argue for caution. Its Value Score of C, Growth Score of C and VGM Score of C do not signal a decisive bargain or broad-based strength, while its Momentum Score of F reflects weak recent stock action.
For investors focused on income and consumer-staples exposure, PEP remains a major global franchise. For those looking for improving near-term earnings momentum, the current ranking and Style Scores suggest patience.
Indie nařídila výrobcům nápojů s vysokým obsahem kofeinu přestat používat označení „energy drink“ a dala jim na splnění 90 dní. Regulátor odmítl námitky Pepsi, Red Bull i Monster Beverage.
SummaryCompaniesEnergy drink sales have boomed in India in recent yearsIndian government wants removal of descriptor 'energy drink'Global consumer firms lobby, but New Delhi unmoved, sources sayBeverage group calls for 'risk-based enforcement approach'NEW DELHI, July 27 (Reuters) - India has ordered makers of high-caffeine beverages sold as "energy drinks" to stop using that description, rejecting efforts to stall the regulatory intervention in a fast-growing market expected to be worth $1.6 billion by 2028, according to documents and sources.
India's food safety regulator said on social media in early July it had issued notices to companies saying there were no Indian standards for such products and claims that a beverage "vitalizes body and mind" or can "aid in general weakness" were misleading. It gave no further details.
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In private, the message from the Food Safety and Standards Authority of India (FSSAI) was even tougher: Pepsi (PEP.O), opens new tab, Red Bull, Monster Beverage (MNST.O), opens new tab, billionaire Mukesh Ambani's Reliance (RELI.NS), opens new tab and Hell Energy must drop "energy drink" — or any similar descriptor, according to confidential documents and people familiar with the matter.
The move has triggered a standoff with companies, who fear removing the category label could damage brands built around instant-energy claims and disrupt sales.
At a closed-door meeting with senior industry executives on Friday, FSSAI Chief Executive Rajit Punhani rejected arguments over the business impact, saying companies were free to challenge the decision in court, two people familiar with the discussion said.
FSSAI and Punhani did not respond to Reuters queries. Pepsi declined to comment, while the other companies did not respond. Reuters is first to report the lobbying efforts and India's decision.
An Indian government source said the industry agreed to comply with the labelling change after the Friday discussion, and the FSSAI has given them 90 days to comply.
Energy drinks have sparked health concerns among some regulators globally who worry they contain high caffeine, sugar and taurine, an amino acid. High-caffeine energy drinks will be banned for under-16s in England from April next year, and some regions in Pakistan mandate they be called "stimulant drinks".
INDUSTRY WOES, 'ELECTRIFYING ENERGY' ADSThe energy drinks business is built on instant-energy marketing.
Red Bull's "Gives You Wiiings" slogan is globally famous, while Pepsi promotes its Sting energy drink in Indian ads that show it sends lightning through one's body, giving "electrifying energy".
The Indian Beverage Association, which represents major companies, said it was committed to complying with regulations and engaging constructively with regulators on science-based policy.
But in a confidential July 6 letter to FSSAI, it said public disclosure of preliminary notices could damage reputations, disrupt operations and confuse consumers. It urged a "risk-based enforcement approach".
"Regular stakeholder consultations before implementing significant interpretational changes would facilitate smoother compliance, reduce litigation," the association said, adding a "predictable, consultative and transparent" framework was essential.
'I AM ADDICTED'India's energy-drinks market boomed after Pepsi launched Sting in 2017. Its 20-rupee ($0.21) plastic bottles proved popular among 15- to 19-year-olds and in rural areas, helping make it a market leader, Euromonitor says.
Retail sales are projected to reach $1.6 billion by 2028, growing 12.6% annually, faster than in the United States and China. Volumes rose nearly 100% annually between 2018 and 2023, Euromonitor says.
"Every time when we feel hungry or go out for a smoke, I buy one drink. It fills my stomach and it gives me strength to work," said Sunny Rajvansi, 24, a bike mechanic in Uttar Pradesh state, who consumes Sting and Reliance's Campa Energy.
"I feel I am addicted to them."
This month, India's Rajasthan state has seized thousands of Sting, Campa Energy and Red Bull as part of its enforcement drive, the government's social media posts show.
On July 8, the state also told e-commerce companies including Amazon (AMZN.O), opens new tab, Walmart's Flipkart, Eternal's (ETEA.NS), opens new tab Blinkit and Swiggy (SWIG.NS), opens new tab Instamart to ensure no product was promoted as an "energy drink", a letter showed.
The e-commerce companies did not respond to Reuters queries.
Reporting by Aditya Kalra; Editing by Saad Sayeed
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Aditya Kalra is the Company News Editor for Reuters in India, overseeing business coverage and reporting stories on some of the world's biggest companies. He joined Reuters in 2008 and has in recent years written stories on challenges and strategies of a wide array of companies -- from Amazon, Google and Walmart to Xiaomi, Starbucks and Reliance. He also extensively works on deeply-reported and investigative business stories.
, /PRNewswire/ -- The Board of Directors of PepsiCo, Inc. (NASDAQ: PEP) today declared a quarterly dividend of $1.48 per share of PepsiCo common stock, a 4 percent increase versus the comparable year-earlier period. Today's action is consistent with PepsiCo's previously announced increase in its annualized dividend to $5.92 per share from $5.69 per share, which began with the June 2026 payment. This dividend is payable on September 30, 2026 to shareholders of record at the close of business on September 4, 2026. PepsiCo has paid consecutive quarterly cash dividends since 1965, and 2026 marked the company's 54th consecutive annual dividend increase.
About PepsiCo
PepsiCo products are enjoyed by consumers more than one billion times a day in more than 200 countries and territories around the world. PepsiCo generated nearly $94 billion in net revenue in 2025, driven by a complementary beverage and convenient foods portfolio that includes Lay's, Doritos, Cheetos, Gatorade, Pepsi-Cola, Mountain Dew, Quaker, and SodaStream. PepsiCo's product portfolio includes a wide range of enjoyable foods and beverages, including many iconic brands that generate more than $1 billion each in estimated annual retail sales.
Guiding PepsiCo is our vision to Be the Global Leader in Beverages and Convenient Foods by Winning with pep+ (PepsiCo Positive). pep+ is our strategic end-to-end transformation that puts sustainability and human capital at the center of how we will create value and growth by operating within planetary boundaries and inspiring positive change for planet and people. For more information, visit www.pepsico.com, and follow on X (Twitter), Instagram, Facebook, and LinkedIn @PepsiCo.
Cautionary Statement
Statements in this release that are "forward-looking statements" are based on currently available information, operating plans and projections about future events and trends. Forward-looking statements inherently involve risks and uncertainties. For information on certain factors that could cause actual events or results to differ materially from our expectations, please see PepsiCo's filings with the Securities and Exchange Commission, including its most recent annual report on Form 10-K and subsequent reports on Forms 10-Q and 8-K. Investors are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date they are made. PepsiCo undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.
PepsiCo ve 2. čtvrtletí v Severní Americe snížila tržby z potravin o 2 % a objem prodeje byl beze změny. Firma čelí slabší poptávce po snackech kvůli lékům GLP-1 a zdravějšímu stravování.
Item 1 of 3 PepsiCo's new product of Doritos and Cheetos NKD (no dyes) for sale in a Walmart store in Encinitas, California, U.S., January 20, 2026. REUTERS/Mike Blake/File Photo
[1/3]PepsiCo's new product of Doritos and Cheetos NKD (no dyes) for sale in a Walmart store in Encinitas, California, U.S., January 20, 2026. REUTERS/Mike Blake/File Photo Purchase Licensing Rights, opens new tab
SummaryCompaniesPepsiCo's Q2 North America food sales fall 2%, volumes flatGLP-1 use reached 21% of US households in May 2026, data showsPepsiCo food volumes have fallen in four of the last six quartersJuly 14 (Reuters) - Americans built one of the world's great snacking cultures. Now PepsiCo (PEP.O), opens new tab is discovering just how fast that can shift.
With one in five American households using GLP-1 weight-loss drugs, surging living costs, and a broader shift toward healthier eating, it is getting harder for the company to reignite growth. The pressure showed up in its quarterly results last week.
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Sales in the Frito-Lay and Pepsi soda maker's North American food business slipped 2%, while volume was flat in the second quarter ended June 13, even after earlier price cuts of up to 15% on some of its biggest products including Lay's, Doritos, Cheetos and Tostitos.
That marked a reversal from the modest recovery investors thought they were seeing at the start of the year, when volume growth improved to around 2% in the first quarter, with the North America food business returning to growth.
Volumes at its food business have fallen four times in the last six quarters.
The contrast with Coca-Cola (KO.N), opens new tab is particularly sharp.
PepsiCo's North America beverage volume fell 4% in the latest quarter, while Coca-Cola reported a 4% growth in the region three months earlier, underscoring the challenges facing PepsiCo's snack-heavy portfolio as consumers become more selective about what they eat and drink.
Coca-Cola's stock has risen more than 20% so far this year, while PepsiCo is down around 4%.
PepsiCo's results are likely to bring more scrutiny from activist investor Elliott Investment Management, which disclosed a roughly $4 billion stake nearly 10 months ago and has pushed the company to reinvigorate its soda business, boost its share price and explore selling non-core food assets.
Investors "certainly want better volumes in the face of them lowering price," said Stephanie Link, chief investment officer at Hightower Advisors, which holds PepsiCo stock.
SNACKING BECOMES MORE INTENTIONALAmericans are increasingly gravitating toward food with perceived health benefits such as higher protein, lower sugar and added fiber.
This comes as GLP-1 adoption has increased to 21% of U.S. households in May 2026, from 9% in January 2025, with users buying fewer sweet treats and cutting back on salty snacks, according to a PwC analysis of Numerator data.
"Consumers have moved from snacking on autopilot to making much more deliberate decisions about what they eat and how often," said Suzy Davidkhanian, vice president and principal analyst at eMarketer.
For PepsiCo, whose food brands including Ruffles and PopCorners generate about 58% of its annual revenue, the shift threatens one of the key engines that has driven growth for decades.
Analysts said any turnaround hinges not just on affordability, but on how quickly PepsiCo capitalizes on the demand for functional products.
The company's executives said last week that improvement in its North America business was likely to be more gradual than expected.
"PepsiCo now finds itself competing harder for every dollar, and increasingly that competition is about relevance as much as price," said Katherine Machado O'Hara, founder of marketing consultancy The Oxigeno Project.
The company "must rethink its 'giant in the room' mentality and support their innovation teams to allow products to market much faster ... A year late isn't just a delay, it can mean missing the trend entirely."
Reporting by Anuja Bharat Mistry and Aishwarya Venugopal in Bengaluru; Editing by Sayantani Ghosh and Sriraj Kalluvila
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PepsiCo po slabších výsledcích za 2. čtvrtletí potvrdila celoroční výhled a zvýšila dividendu už 54. rokem v řadě. Akcie se obchodují poblíž 52týdenního minima a nesou asi 4,3% výnos.
The first half of 2026 belonged to artificial intelligence. The second half, so far, has belonged to almost everything else.
In the opening stretch of July, technology has been the market's worst-performing sector. Meanwhile, cash has flowed into the corners investors ignored all year: energy, financials, healthcare, and consumer staples. A soft June jobs report, which showed the economy adding just 57,000 jobs, cooled bets on a Federal Reserve rate hike and gave the rotation a further push.
For income investors, I think a rotation into defensive, dividend-paying stocks is worth a closer look. Three names in particular stand out.
Each is a Dividend King with at least half a century of consecutive annual increases, and each sits at a very different point in this trade. Here's a look at Coca-Cola, Johnson & Johnson, and PepsiCo.
Image source: Getty Images.
1. Coca-Cola: quality, already rewarded Coca-Cola (KO +1.05%) is what the rotation looks like when it works. The beverage giant trades near an all-time high, and the business has earned it. First-quarter organic revenue rose 10% year over year, a strong result for a company this size and this old.
The dividend, of course, is about as secure as dividends get. Coca-Cola has raised its payout for 64 straight years, and the current $2.12 annual dividend uses up only about two-thirds of earnings.
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The one drawback is the price -- at roughly 25 times forward earnings, with a 2.5% yield, Coca-Cola is arguably priced like the defensive stalwart it is. You're buying quality here, but you're not buying it cheap.
2. Johnson & Johnson: the healthcare anchor Johnson & Johnson (JNJ 0.82%) offers a similar kind of durability from a different sector. The healthcare giant just raised its dividend for the 64th consecutive year, matching Coca-Cola for the longest streak of this trio.
Indeed, its first-quarter results gave the increase plenty of cover. Revenue rose about 10% year over year, adjusted earnings per share came to $2.70, and management lifted its full-year outlook to about $11.55 in adjusted earnings per share, helped by strong demand for cancer drug Darzalex and immunology treatment Tremfya.
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At about 22 times forward earnings and a 2.1% yield, Johnson & Johnson sits between its two peers here on valuation, though its yield is the lowest of the three. Its dividend consumes less than half of adjusted earnings, so there's ample room for more increases. Investors will get a fresh read soon, too: the company reports second-quarter results this week, on July 15.
3. PepsiCo: the cheap, out-of-favor one If Coca-Cola is the rotation's winner, PepsiCo (PEP 0.35%) is the name it has passed by so far. The snacks and beverages maker trades near a 52-week low.
Its second-quarter report on Thursday explains part of why. Organic revenue grew just 2.4%, in line with the sluggish low-single-digit pace of recent quarters, and volume in its North American beverage business fell 4%.
But there's another side to this. PepsiCo affirmed its full-year outlook, still expects core constant currency earnings per share to grow 4% to 6% for the year, and just raised its dividend for the 54th year running.
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After the sell-off, the stock now yields about 4.3% -- comfortably the highest of the three -- at roughly 16 times forward earnings, easily the cheapest. For investors who think the rotation into unloved value has further to run, that's arguably the most direct way to play it in this group.
The better way to play the rotation? So which of these three fits the moment best? It depends on what an investor is after.
The highest quality, for those willing to pay up, is Coca-Cola. The steadiest, and the one giving a fresh read on its business next, on July 15, is Johnson & Johnson. And the best value, for anyone willing to sit through some near-term softness, is PepsiCo.
Personally, in a rotation like this, I lean toward the cheapest, most out-of-favor name, which points to PepsiCo. Its U.S. business isn't at its strongest right now, but a 4.3% yield backed by 54 years of increases pays investors well to be patient.
Of course, none of these is a bargain in absolute terms. And a market that turns back toward growth could leave defensive payers behind just as fast as it found them. But if the rotation into value has staying power, these three sit squarely in its path.
Coca-Cola se drží u historických maxim, zatímco PepsiCo od vrcholu v roce 2023 klesla téměř o třetinu. Investory dál znepokojuje slabší prodej nápojů i snacků v Severní Americe.
Coca-Cola is pounding Pepsi on Wall Street, riding a lean beverage strategy to near-record highs while its bloated rival chokes on a slumping snack business.
Coke shares are nearly the highest ever since the Atlanta-based drinks giant entered the stock market over a century ago. Meanwhile, PepsiCo’s stock has tumbled nearly 30% since peaking just below $200 in 2023.
Pepsi reported better-than-expected second-quarter earnings on Thursday, but the results failed to reassure investors as sales dropped in its core North American beverage division.
Coca-Cola’s stock is trading near all-time highs, while shares in Pepsi have tumbled by close to one-third since peaking just below $200 in 2023. monticellllo – stock.adobe.com The company posted a 6.4% increase in overall net revenue to $24.2 billion, with North American beverage sales accounting for $7.2 billion of the total.
After years of rivalry featuring “Pepsi challenges,” ill-fated experiments like “New Coke” and relentless ad campaigns, Coke was widely seen as coming out on top some years ago. Investors are seconding that opinion, pointing to disparate financials.
The financial gap between the competitors is most evident in their profitability. Coca-Cola reported a 35% operating margin in the first quarter, up from about 33% a year earlier. PepsiCo’s operating margin hovered around 16.5% for the first half of the year, less than half of its rival’s.
“It’s becoming more obvious to the investor base that Coke has a superior business model,” Nik Modi, co-head of global consumer research at RBC Capital Markets, told Barron’s.
PepsiCo’s challenges stem primarily from its snack division and its approach to bottling operations.
Packaged foods and snacks, including Lay’s, Doritos and Cheetos, generated 58% of PepsiCo’s revenue in 2025.
But aggressive price increases implemented during the COVID pandemic have hurt demand. Consumers have increasingly traded down to cheaper store brands to slash their grocery budgets.
Investors appear yet to be convinced by Pepsi’s strategy, which has been criticized for being bloated and overpriced. REUTERS In North America, snack food revenue fell 2% in the second quarter compared with a year ago, and unit sales remained flat.
PepsiCo CEO Ramon Laguarta attributed the slowing snack sales partly to high gasoline prices, which deter customers from making impulse buys at convenience stores.
“I think the consumer is worse than what we had anticipated and driven mainly by gas prices,” the exec said Thursday during a conference call with investors.
Citi analyst Filippo Falorni said the company faced “continued weakness in North America” in a note to clients on Friday, warning that the sales slump would persist for as long as inflationary pressures caused by the Iran war hit the US economy.
PepsiCo also owns a string of snack brands, including Lays chips and the best-selling Doritos products. Bloomberg via Getty Images “This dynamic also creates carryover risk to numbers in 2027,” he added, “with still elevated cost inflation pressuring margins.”
Coca-Cola, by contrast, focuses almost exclusively on beverages. It has driven growth with products like Fairlife ultra-filtered milk and smaller, premium-priced soda cans.
Coca-Cola also keeps overhead costs low by franchising most of its bottling operations. PepsiCo still owns about 80% of its bottlers, creating higher structural costs that cut into its margins.
PepsiCo’s lagging performance recently drew the attention of activist investor Elliott Investment Management.
After disclosing a $4 billion stake in PepsiCo in September, the hedge fund pushed the company to streamline operations, lower prices, and consider refranchising its North American bottling network, similar to Coca-Cola’s model.
In response, Pepsi struck an agreement with Elliott late last year. The company agreed to a sweeping restructuring plan that includes cutting 20% of its US product lines by early 2026, lowering prices on core brands, and shuttering several manufacturing plants.
While PepsiCo has resisted a full refranchising of its bottling operations, it has begun testing the integration of its snack and beverage distribution systems to improve efficiency.
To improve profitability, RBC’s Modi suggested the company might need to rethink its heavy ownership of manufacturing and distribution facilities.
“They may have to make some tough choices,” he said.
Shares of Coca-Cola Co. rose in midday trading Friday, continuing to widen the financial gap with PepsiCo.
As of 2 p.m. EDT, Coca-Cola stock was trading at $83.34, up 71 cents, or nearly 1%, from Thursday’s close of $82.63. The stock continues to hover near its 52-week high of $85.68.
Meanwhile, shares of PepsiCo were down 56 cents, or 0.4%, trading at $137.30. The stock is lingering closer to its 52-week low of $133.75 after closing at $137.86 on Thursday.
Coca-Cola is set to report its second-quarter earnings July 28
PepsiCo zvýší dividendu o 4 % a prodlouží sérii růstu dividend na 54 let. Firma zároveň potvrdila celoroční výhled růstu organických tržeb o 2–4 % a core EPS o 4–6 %.
Fifty-four. That is how many consecutive years PepsiCo (NASDAQ:PEP | PEP Price Prediction) will have raised its dividend once the 4% increase in the annualized dividend per share takes effect with the June 2026 payment. The company which now trades at a $200 billion market capitalization reaffirmed the streak in its Q1 FY2026 earnings release filed April 15, 2026, pushing its annualized payout to $5.92 per share.
For a retirement-focused reader who cares about income that keeps showing up, that streak is the story.
What It Means A 54-year run puts PepsiCo in a club of two Dividend Kings with 50-plus years of consecutive dividend increases. The raise is backed by real capital return. Management sized total FY2026 shareholder returns at roughly $8.9 billion, split between $7.9 billion in dividends and $1.0 billion in repurchases, on top of a new $10 billion share repurchase program running through February 28, 2030.
The cash flow behind that promise is doing its job. Pepsi’s Q1 core EPS came in at $1.61 against a $1.54 consensus, revenue landed at $19.44 billion versus $18.92 billion expected, and operating margin expanded 210 basis points to 16.5%. International segments carried the quarter, with EMEA core operating profit up 29% and Asia Pacific Foods up 35%. That is the plumbing that funds five decades of raises.
Market Reaction Pepsi stock closed at $144.22 on July 2, 2026, up 2.17% on the day. On a longer look, the stock is up 2.44% year to date, 3.37% over one week, and 9.84% over one year. That trails the S&P 500’s 9.22% YTD and 20.04% one-year gain, but recent trading has turned. TradingKey reported the stock rose 4.21% on July 1 driven by institutional accumulation, with the market pricing in a valuation floor ahead of Q2.
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Bull Case The defensive rotation is the setup. UBS analyst Sean Burns wrote on July 2 that “defensive dividend stocks like PepsiCo (PEP) and McDonald’s (MCD) are poised for a comeback, offering attractive value compared to high-growth tech stocks,” citing a 4.4% market-implied yield on lower-risk companies versus 1.4% for high-risk stocks. PepsiCo’s current dividend yield of 4.2% sits inside that band, and the stock trades at 16 times forward earnings against a trailing P/E of 22.
Valuation adds a second leg. Shares sit 17.55% below the 52-week high of $171.48 set on February 12, 2026, and the analyst average target of $166.82 implies room above the current print. CEO Ramon Laguarta framed the setup on the call: “We are encouraged with the resilience of the International business while North America continued to make progress in the first quarter.” Reaffirmed FY2026 guidance calls for organic revenue growth of 2-4% and core constant currency EPS growth of 4-6%, with free cash flow conversion of at least 80%.
The macro backdrop favors the thesis. Per capita disposable income has risen from $63,638 in 2024 Q1 to $68,391 in 2026 Q1, and personal consumption expenditures ran at $21,634.9 billion in 2026 Q1. Consumers keep buying snacks and drinks. Additionally, a beta of 0.359 means PepsiCo moves roughly a third as much as the broader market, exactly the profile retirement portfolios lean on when volatility picks up.
Bottom Line Fifty-four consecutive raises is a track record you can plan retirement income around. Pepsi’s Q2 2026 earnings are scheduled for July 9, 2026, with forecasted EPS of $2.19 on revenue of $23.97 billion, and a repeat of Q1’s international strength would validate the pricing the market is starting to put back into the stock. For long-term holders, the anchor is the payout streak, and the payout streak is still intact.
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PepsiCo po výsledcích za 2. čtvrtletí potvrdila celoroční výhled, ale varovala před vyššími náklady na vstupy ve druhé polovině roku 2026. Analytici Citigroup a Wells Fargo zároveň snížili cílové ceny.
PepsiCo, Inc. (NASDAQ:PEP) on Thursday reported mixed second-quarter results.
Net revenue rose 6.4% year over year to $24.18 billion, beating the $23.96 billion analyst estimate. Core EPS increased 4% to $2.20, missing the $2.21 estimate, while GAAP EPS rose 137% to $2.18.
PepsiCo anticipates higher input cost inflation in the second half of 2026. PepsiCo reaffirmed its fiscal 2026 guidance, projecting organic revenue growth of 2% to 4% and core constant currency EPS growth of 4% to 6%.
PepsiCo shares fell 0.6% to $137.10 in pre-market trading.
These analysts made changes to their price targets on PepsiCo following earnings announcement.
Citigroup analyst Filippo Falorni downgraded the stock from Buy to Neutral and lowered the price target from $170 to $145. Wells Fargo analyst Chris Carey maintained the stock with an Equal-Weight rating and lowered the price target from $150 to $140. Considering buying PEP stock? Here’s what analysts think:
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PepsiCo ve 2. čtvrtletí zvýšila tržby na téměř 24,2 miliardy USD a čistý zisk podle GAAP na téměř 2,99 miliardy USD, ale akcie po výsledcích klesly o více než 3 %.
Investors weren’t too eager to take a swig of PepsiCo (PEP 3.26%) after the beverage and snacks giant reported second-quarter results early on Thursday. This, despite headline figures that — depending on which consensus numbers are used — beat analyst estimates. The company’s shares slid by more than 3% that trading session, contrasting poorly with the 0.8% rise of the bellwether S&P 500 index.
Let’s tuck into PepsiCo’s quarter to find out why it was such a flat, warm can of soda for many market players.
Image source: Getty Images.
Where’s the fizz?During the quarter, PepsiCo’s net revenue was just under $24.2 billion, up 6% year over year. The company’s net income under generally accepted accounting principles (GAAP) grew much more robustly, doubling and then some to almost $2.99 billion from the year-ago profit of $1.26 billion. Yet on a per-share, non-GAAP (adjusted, or “core” in company parlance) basis, net income only inched up by 4% to $2.20.
This meant a pair of beats for PepsiCo, though these were modest. On average, analysts tracking the stock were modeling net revenue of $23.9 billion and core earnings per share (EPS) of $2.19.
Despite the growth in key fundamentals, other metrics were lower this quarter. The company’s largest single market remains its native North America, so weakness there is always cause for concern. Second-quarter sales in the company’s food (i.e., snacks) business there fell by 2% year over year. And while revenue from its beverages rose by 7%, much of this was due to recently integrated acquisitions and partnerships. The latter included a deal with Celsius (CELH 0.24%) to distribute that company’s hotly popular drink line Alani Nu.
It’s revealing that overall volumes for North America beverages sank in spite of this, falling by 4%. And, when stripping out acquisitions and divestitures from the mix, that drinks unit saw only a 1% organic revenue gain.
In the conference call discussing the results, PepsiCo CEO Ramon Laguarta attributed the U.S. declines to changes in consumer behavior. He speculated that the soaring price of gasoline was affecting traffic at convenience stores. This is a major sales channel for the company as items like its Pepsi and Doritos are often impulse buys for customers filling their tanks or taking a rest from driving.
International flavorOn a brighter note or two, PepsiCo performed better in markets abroad. Its international beverages business saw gains in both volume (5%) and, especially, reported revenue (11%, or 9% when adjusted for foreign currency exchange). Better, since those acquisitions were concentrated on U.S. products, that overseas growth was entirely organic.
The company’s snacks also proved to be popular outside our borders. Standouts in this category were Asia Pacific and Latin America foods, which saw reported revenue growth of 15% and 12%, respectively.
So basically, PepsiCo had two diverging trajectories — the sluggishness of the North America operations, and the dynamism of its international efforts. The latter should help the company achieve growth in the coming quarters — it reiterated its guidance for full-year 2026, forecasting organic revenue growth of 2% to 4% over 2025, with a rise in core, constant-currently EPS of 4% to 6%.
Importantly for this Dividend King — PepsiCo is one of the rare companies that has declared dividend raises at least once annually for a minimum of 50 years running — it expects to distribute $7.9 billion in shareholder payouts during the year. That’s up from the $7.6 billion it spent last year. Management also intends to devote $1 billion to share buybacks.
Potential yield trapI think PepsiCo still has some way to go in order to become an investor favorite again. Those slumps in the North America business are concerning and, outside of the unlikely possibility that international growth rockets much higher, softness in that market will negatively affect both the fundamentals and investor perception of the business.
A longer-term issue for PepsiCo is that, in many ways, it’s a poster boy for unhealthy food and drink consumption. That served it well for decades, but this century’s trend — at least on our shores — is towards more considered, healthier eating and quaffing. Yes, PepsiCo has diet/no-sugar drinks and moderately better-for-you snacks. But it’s still anchored by, and strongly identified with, goodies like Pepsi and Cheetos.
As for shareholder remuneration, PepsiCo is not only a Dividend King, its payout is bubbling into high-yield territory at almost 4.3%. This, however, is largely due to a weakened share price, which, after earnings, was teasing its one-year low.
While the dividend might be an attractive draw for investors hungry for yield or sniffing around for a bargain, that wouldn’t tip me into buying the stock. I don’t see either North America beverages or food improving much, and PepsiCo’s wares aren’t popular enough abroad to offset this significantly.
PepsiCo potvrdila celoroční výhled a uvedla, že první pololetí přineslo téměř 7% růst tržeb, zatímco globální objemy stouply o 3 % v potravinách a o 2 % v nápojích. Severní Amerika ale zůstala slabší kvůli vyšším cenám benzínu.
PepsiCo’s Dividend Could Turn Patience Into Real ProfitPepsiCo NASDAQ: PEP executives reaffirmed the company’s full-year outlook during its 2026 second-quarter earnings question-and-answer session, pointing to strong international momentum and improving global volumes while acknowledging that North America, particularly impulse channels tied to gasoline purchases, performed below expectations in the quarter.
Chairman and CEO Ramon Laguarta said PepsiCo’s first-half results showed “almost 7% revenue growth,” with global volumes up 3% in foods and 2% in beverages, which he described as the company’s fastest volume growth since 2022. CFO Steve Schmitt said reported EPS grew 6% in the first half, while constant-currency EPS rose 3%.
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These 5 Companies Just Made a Massive Bet on ThemselvesStill, management repeatedly cited a softer-than-expected North American environment in the second quarter, with higher gasoline prices affecting consumer behavior and convenience-store purchasing. Laguarta said the company continues to see strong international performance and expects North America to gradually improve in the second half, though at “a more moderate pace” than previously anticipated.
North America Focuses on Affordability, Portfolio Changes A key topic on the call was PepsiCo Foods North America, where volume was flat in the quarter despite stepped-up affordability initiatives and innovation. Laguarta said the company had two main goals for its U.S. foods business: get the salty-snacks category back to volume growth and regain volume share. He said PepsiCo has made progress on both.
Campbell's Soup Stock: Deep Value and a 7% Dividend Yield“A category that was negative in volume now is positive in volume,” Laguarta said. “We were losing share in volume. We’re gaining share in volume.”
Management said the turnaround is being driven by two pillars: price and affordability investments, and growth in “permissible” products and portion-control offerings. Laguarta said the permissible foods portfolio is already a $3 billion business and is growing “almost double digit.” He also pointed to portion-control formats and opening price points in multipacks and variety packs as areas that are working well.
At the same time, Laguarta said PepsiCo needs to improve the return on some of its pricing investments in the second half. He described the work as customer-by-customer and channel-by-channel, with different approaches needed for high-low retailers versus everyday-low-price retailers.
“It’s trying to get more volume from the investments,” Laguarta said in response to a question about what optimizing return on investment means.
Gas Prices Weigh on Convenience and Impulse Channels Executives said higher gasoline prices following the Iran war had a meaningful impact on consumers, not just in the U.S. but globally. Laguarta said the U.S. effect has been most visible in impulse channels such as convenience stores and independent outlets, where PepsiCo is seeing slower conversion of store traffic into food and beverage purchases.
To address the issue, PepsiCo is working with retail partners on offers such as bundles, meal-linked promotions and combined food-and-beverage solutions. Laguarta said the company sees benefits when it has “good offers and bundles” in the channel.
He also said PepsiCo is not trying to raise prices in single-serve products to pay for investments in take-home formats.
“That’s not what we’re trying to do,” Laguarta said.
Asked about test-market work that supported the company’s affordability strategy, Laguarta said the consumer is “worse than what we had anticipated,” largely because of gasoline prices, and that some price investments at certain customers experienced execution delays for commercial reasons. He said those issues have been addressed and should support acceleration in the second half.
Guidance Reaffirmed, Tariff Refunds to Offset Cost Pressure Schmitt said PepsiCo reaffirmed its full-year guidance, though he noted results may trend toward the low end of the EPS range the company had previously provided. He said management expects international net revenue to remain strong, North America to gradually improve and commodity pressures to increase.
PepsiCo also expects refund claims for tariffs paid last year to provide about 1 full point of EPS growth for the year. Schmitt said those refunds will help offset commodity pressure and allow the company to continue investing in the business.
“We’re not making decisions that hurt the top line in our assessment,” Schmitt said. He added that North America advertising and marketing expense is projected to increase in the second half compared with the prior year.
Schmitt said third-quarter results are expected to benefit from international strength and approximately 1 point of EPS benefit from tariff refund claims, but also face a higher year-over-year tax rate and timing of certain costs and investments. He said PepsiCo expects more productivity in the fourth quarter than in the third quarter.
International Business Remains a Growth Driver Management emphasized the strength of PepsiCo’s international business throughout the call. Laguarta said the international business is expected to cross $40 billion this year and has become a major contributor to company volume, revenue and profit. He said international beverage volumes represent about two-thirds of PepsiCo’s total company beverage volume, while international foods volumes represent more than half.
Laguarta said markets in Asia and the Middle East remained resilient despite concerns about elevated gasoline prices. He also cited strong performance in Europe, where World Cup sponsorship activity in the food business is helping activate the category, and said Latin America was growing somewhat less than the rest of the business but remained positive.
Schmitt said international operating margin increased by a full point in the second quarter, showing not only top-line growth but improved flow-through on the profit and loss statement. He noted that PepsiCo expects some commodity inflation in the second half, particularly in EMEA, but said teams have been proactive in mitigation efforts.
PBNA Margins, M&A and U.S. Productivity Initiatives In PepsiCo Beverages North America, Schmitt said operating margin declined about 90 basis points in the quarter, driven by gross profit rate. He attributed about half of the gross profit rate decline to the company’s Alani commercial arrangement, with additional pressure from softness in convenience and gas channels and product mix.
Laguarta said PepsiCo continues to see momentum in no-sugar beverages, functional hydration and energy, as well as innovation expected to scale in the second half.
On recent acquisitions, Laguarta said both Siete and poppi are “doing well.” He said poppi experienced some transition impact as it moved from its prior distributor system into PepsiCo’s system, but that issue is “pretty much solved.” Siete had ingredient-related issues in April and May, which he said have also been resolved. He also cited partnerships such as Celsius and Alani Nu as ways PepsiCo is expanding consumer offerings.
Executives also discussed productivity initiatives in the U.S., including automation, digitalization and efforts to combine scale across the company’s North American food and beverage businesses. Laguarta said PepsiCo is testing combined mixing centers, combined delivery and combined fleet concepts in Texoma, with more detail expected later this year or early next year.
Laguarta said the objective is to fund U.S. transformation without reducing investment in international markets, which he described as PepsiCo’s largest long-term growth opportunity.
About PepsiCo NASDAQ: PEPPepsiCo, 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.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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PepsiCo vykázala za fiskální druhé čtvrtletí růst čistých tržeb o 6,4 % a zisku na akcii více než dvojnásobný. Firma zároveň zvýšila čtvrtletní dividendu o 4 % a dividendový výnos akcie je 4,2 %.
There's a rift between the two best-known carbonated beverage brands. PepsiCo (PEP 3.39%) is relatively out of favor. The beverage and salty snacks giant is trading 17% below its 52-week high and 28% lower than when shares peaked in early 2023.
Rival Coca-Cola is faring considerably better. Coca-Cola hit new highs this week. PepsiCo may be a laggard right now, but don't dismiss it as a potential winning investment. There are a few good reasons to take a chance on PepsiCo this month. Let's check them out.
Image source: Getty Images.
1. PepsiCo's yield is approaching a new high Pepsi stock's recent slide -- and its long streak of boosting its annual distributions -- has the shares trading at a 4.2% yield. It's closing in on last year's historic high. More downticks or another hike in the spring of next year should get it there.
May's 4% increase in its quarterly payouts extends PepsiCo's streak of annual hikes to 54 consecutive years. PepsiCo is royalty, as one of the country's 57 Dividend Kings with more than 50 years of increased distributions. It's one of just six Dividend Kings that are currently yielding more than 4%.
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2. The stock is cheap in a pricey market PepsiCo's guidance calls for meager but positive revenue growth this year, with earnings growing slightly higher. The company behind more than just its namesake soft drinks -- it's also the owner of Frito-Lay, Gatorade, and Quaker Oats -- trades at a discount to the market.
You can buy PepsiCo for just 16 times forward earnings. The beverage stock itself is growing much more slowly than that, but you should expect to pay a premium to collect a yield above 4% in today's market. That current payout is higher than even the top money market funds.
3. Taking a closer look at fresh financials PepsiCo released its latest financial results on Thursday morning. Its fiscal second quarter ended in mid-June, giving the beverage and food conglomerate the distinction of being one of the earliest reporters this critical earnings season. Its performance was a mixed bag.
The reported results seem great at first. Net revenue rose 6.4% for the quarter. Earnings per share more than doubled. Take it a step further, and organic revenue rose 2.4%. Core earnings per share climbed 4%, or just 1% on a constant currency basis. It was a slight beat on the top and a slight miss on the bottom. The stock initially ticked slightly lower ahead of the market open.
A silver lining is that its global organic sales volume through the first half of fiscal 2026 is PepsiCo's highest in four years. It's also not taking its recovery for granted, actively working on "restaging" its four main non-soda brands: Lays, Tostitos, Gatorade, and Quaker. The tweaks involve updating and upgrading the packaging, marketing, and even ingredients to appeal to a wider audience. It's a gamble, but one worth taking to accelerate its slumbering organic and core results. With more than five decades of dividend hikes, investors will continue to be rewarded for their patience in the turnaround process.
PepsiCo ve 2Q zvýšilo tržby o 6,4 % na 24,18 mld. USD, ale organické tržby vzrostly jen o 2,4 % a mírně zaostaly za odhady. Firma zároveň potvrdila celoroční výhled organického růstu tržeb.
Americký výrobce nápojů a potravin PepsiCo zveřejnil výsledky hospodaření za druhé čtvrtletí roku fiskálního roku 2026, které skončilo 13. června 2026. Organické tržby vzrostly o 2,4 %, čímž mírně zaostaly za odhadem analytiků, přičemž segment potravin v Severní Americe organicky klesl o 2 %. Tržby a jádrový zisk na akcii odhady mírně překonaly a společnost potvrdila celoroční výhled organického růstu tržeb.
Výsledky společnosti PepsiCo (PEP) za 2Q FY 2026 2Q FY 2026 Konsensus 2Q FY 2026 2Q FY 2025 Tržby (mld. USD) 24,18 23,95 22,73 Provozní zisk (mld. USD) 4,02 4,06 1,79 Jádrový zisk na akcii (Core EPS, USD/akcie) 2,20 2,19 2,12 Výsledky za 2Q FY 2026 Tržby meziročně vzrostly o 6,4 % na 24,18 mld. USD a překonaly odhad 23,95 mld. USD. Organické tržby vzrostly o 2,4 % (odhad: +2,54 %), přičemž loňský výsledek byl +2,1 %.
Tržby PepsiCo ve 2Q FY 2026 dle segmentů
(mld. USD) Segment Tržby Konsensus Meziroční změna Nápoje Severní Amerika (PBNA) 7,24 7,20 +6,5 % Potraviny Severní Amerika (PFNA) 6,37 6,48 –1,7 % Evropa, Blízký východ a Afrika (EMEA) 4,98 4,89 +9,9 % Potraviny Latinská Amerika 2,94 2,86 +15 % Mezinárodní franšíza nápojů (IB Franchise) 1,52 1,46 +11 % Asie a Tichomoří 1,12 1,06 +12 % Z hlediska organického růstu tržeb si mezinárodní segmenty vedly výrazně lépe než Severní Amerika – mezinárodní franšíza nápojů vzrostla o 9 %, EMEA o 6 % a Latinská Amerika o 4 %. Potraviny v Severní Americe organicky klesly o 2 %, nápoje v Severní Americe vzrostly o 1 %.
Provozní zisk dosáhl 4,02 mld. USD, mírně pod odhadem 4,06 mld. USD. Jádrová provozní marže se meziročně mírně snížila o 40 bazických bodů na 16,8 %.
Výhled na FY 2026 Společnost potvrdila celoroční výhled a nadále očekává:
Organický růst tržeb +2 % až +4 % (odhad: +2,76 %) Růst jádrového zisku na akcii v konstantních měnách +4 % až +6 % Firma zároveň očekává, že ve fiskálním roce 2026 navrátí akcionářům přibližně 8,9 mld. USD, z toho dividendy 7,9 mld. USD a zpětné odkupy akcií 1,0 mld. USD.
Komentář vedení „Výsledky druhého čtvrtletí přinesly silný organický růst objemů i tržeb v segmentech globálních potravin a nápojů. Od začátku roku vzrostl globální organický objem PepsiCo nejvyšším tempem od roku 2022, a to díky síle mezinárodního byznysu a pokračující evoluce portfolia," uvedl předseda představenstva a generální ředitel Ramon Laguarta. „Do budoucna budeme nadále plnit naše strategické priority se zaměřením na akceleraci růstu tržeb – včetně přepozicování vybraných globálních značek, inovací v oblasti funkčních a nových produktů a investic do cenové dostupnosti. Zároveň zvyšujeme produktivitu napříč celou organizací s cílem zlepšit provozní páku," dodal Laguarta.
Akcie PepsiCo Akcie PepsiCo (PEP) v předburzovní fázi obchodování rostou o 1,08 % na 144,03 USD.
Akcie PepsiCo Inc (PEP) před výsledky uzavřely na 142,51 USD Ukazatel Ukazatel Kapitalizace (mld. USD) 194,5 P/E 17,3 Vývoj za letošní rok (%) -0,7 Očekávané P/E 16,6 52týdenní minimum (USD) 133,0 Prům. cílová cena (USD) 165,4 52týdenní maximum (USD) 171,5 Dividendový výnos (%) 4,0 Zdroj: PepsiCo, Bloomberg
PepsiCo ve čtvrtek před otevřením trhu oznámí výsledky za 2. čtvrtletí; analytici čekají tržby 23,94 miliardy USD a EPS 2,21 USD. Firma už snížila celoroční výhled pro tržby i zisk na akcii.
Beverage and food giant PepsiCo (NASDAQ:PEP) is set to report second-quarter financial results Thursday before market open.
• PepsiCo stock is showing downward pressure. Where is PEP stock headed?
Here are the earnings estimates, analyst ratings and key items to watch.
Pepsi Q2 Earnings EstimatesAnalysts expect PepsiCo to report second-quarter revenue of $23.94 billion, up from $22.73 billion in last year’s second quarter, according to data from Benzinga Pro.
The company has beaten analyst estimates for revenue in five straight quarters and in six of the past 10 quarters overall.
Analysts expect PepsiCo to report second-quarter earnings per share of $2.21, up from $2.12 in last year’s second quarter.
The company has beaten analyst estimates for earnings per share in four straight quarters and in nine of the past 10 quarters overall.
Pepsi Analyst RatingsAnalysts have been lowering their price targets on PepsiCo stock ahead of the financial results. Here are some of the latest analyst ratings and price targets on the stock.
Key Items to WatchCelsius beat analyst estimates for revenue and earnings per share, with overall revenue up 138% year-over-year to a record $782.6 million. The company was helped by the addition of the Alani Nu brand, which saw record first-quarter revenue of $368.1 million.
Pepsi, which is an investor and key distribution partner, was credited with helping the record results as Alani Nu grew its distribution in the quarter.
While energy drinks are only part of the PepsiCo portfolio, they could be one of the bright spots.
Investors will be watching to see if other beverages and snack foods also saw strength in the quarter.
Pepsi has in the past highlighted changes in prices and sizes for some food products like chips as it fights off inflation and tries to win back consumers who thought prices were too high.
Pepsi’s report comes ahead of rival Coca-Cola Co (NYSES:KO), which reported earnings on July 28. Coca-Cola has beaten analyst estimates for earnings in nine straight quarters and beaten revenue estimates in seven of the past 10 quarters, more consistent beats than Pepsi.
The other big difference is guidance. Pepsi lowered its full-year guidance for sales and earnings per share after first-quarter results. Coca-Cola raised its guidance.
Pepsi shares are up 1% year-to-date in 2026, underperforming Coca-Cola’s gain of 21.6% and the 8.9% gain of the SPDR S&P 500 ETF Trust (NYSE:SPY), which tracks the S&P 500.
Investors and analysts will likely be expecting a strong report, a double beat and updated positive guidance. A miss and/or cut guidance could put further pressure on shares.
Pepsi Stock Price ActionPepsi stock is down 0.9% to $143.64 on Wednesday, versus a 52-week trading range of $132.96 to $171.48.
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The upcoming report from PepsiCo (PEP - Free Report) is expected to reveal quarterly earnings of $2.19 per share, indicating an increase of 3.3% compared to the year-ago period. Analysts forecast revenues of $23.85 billion, representing an increase of 4.9% year over year.
Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted upward by 0.1% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.
Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.
While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.
Given this perspective, it's time to examine the average forecasts of specific PepsiCo metrics that are routinely monitored and predicted by Wall Street analysts.
The consensus among analysts is that 'Reported Net Revenue, GAAP measure- IB Franchise (International Beverages Franchise)' will reach $1.46 billion. The estimate indicates a year-over-year change of +6.6%.
It is projected by analysts that the 'Reported Net Revenue, GAAP measure- EMEA (Europe, Middle East and Africa)' will reach $4.85 billion. The estimate points to a change of +7% from the year-ago quarter.
Based on the collective assessment of analysts, 'Reported Net Revenue, GAAP measure- PBNA (PepsiCo Beverages North America)' should arrive at $7.16 billion. The estimate suggests a change of +5.3% year over year.
The consensus estimate for 'Reported Net Revenue, GAAP measure- PFNA (PepsiCo Foods North America)' stands at $6.54 billion. The estimate indicates a year-over-year change of +1%.
Analysts expect 'Reported Net Revenue, GAAP measure- LatAm Foods' to come in at $2.83 billion. The estimate indicates a change of +11.1% from the prior-year quarter.
The combined assessment of analysts suggests that 'Reported Net Revenue, GAAP measure- Asia Pacific Foods' will likely reach $1.07 billion. The estimate points to a change of +7.2% from the year-ago quarter.
Analysts' assessment points toward 'Core Operating Profit, non-GAAP measure- PFNA (PepsiCo Foods North America)' reaching $1.57 billion. Compared to the present estimate, the company reported $1.49 billion in the same quarter last year.
According to the collective judgment of analysts, 'Core Operating Profit, non-GAAP measure- PBNA (PepsiCo Beverages North America)' should come in at $1.07 billion. The estimate compares to the year-ago value of $994.00 million.
Analysts forecast 'Core Operating Profit, non-GAAP measure- IB Franchise (International Beverages Franchise)' to reach $587.22 million. Compared to the current estimate, the company reported $538.00 million in the same quarter of the previous year.
The average prediction of analysts places 'Core Operating Profit, non-GAAP measure- LatAm Foods' at $512.03 million. Compared to the present estimate, the company reported $545.00 million in the same quarter last year.
Analysts predict that the 'Core Operating Profit, non-GAAP measure- Asia Pacific Foods' will reach $110.28 million. The estimate is in contrast to the year-ago figure of $93.00 million.
The collective assessment of analysts points to an estimated 'Core Operating Profit, non-GAAP measure- EMEA (Europe, Middle East and Africa)' of $722.01 million. The estimate compares to the year-ago value of $657.00 million.
View all Key Company Metrics for PepsiCo here>>>
Shares of PepsiCo have experienced a change of +1.5% in the past month compared to the -1.7% move of the Zacks S&P 500 composite. With a Zacks Rank #4 (Sell), PEP is expected to underperform the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
PepsiCo, Inc. (NASDAQ:PEP) will release its second quarter earnings report before the opening bell on Thursday, July 9.
Analysts expect the Purchase, New York-based company to report quarterly earnings of $2.21 per share, up from $2.12 per share in the year-ago period. The consensus estimate for Levi Strauss’ quarterly revenue is $23.97 billion. It reported $22.73 billion last year, according to Benzinga Pro.
On May 5, PepsiCo announced a new collaboration with TalusAg to advance fertilizer decarbonization via low-carbon ammonia environmental attributes.
PepsiCo shares gained 1.3% to close at $141.39 on Friday.
Benzinga readers can access the latest analyst ratings on the Analyst Stock Ratings page. Readers can sort by stock ticker, company name, analyst firm, rating change or other variables.
Let’s have a look at how Benzinga’s most-accurate analysts have rated the company in the recent period.
Considering buying PEP stock? Here’s what analysts think:
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Bank of America snížila odhad zisku PepsiCo na fiskální rok 2026 na 8,61 USD z 8,65 USD a výhled tržeb kvůli slabšímu severoamerickému snackovému byznysu PFNA. Odhad zisku za 2. čtvrtletí snížila na 2,18 USD z 2,19 USD, výhled organického růstu tržeb za čtvrtletí na 2,9 % z 3,1 % a celoroční výhled na 3,0 % z 3,4 %. Mezinárodní trhy zůstávají silnější, ale obnova má trvat déle.
PepsiCo Inc (NASDAQ:PEP, XETRA:PEP) earnings outlook was trimmed by Bank of America analysts ahead of the company’s second quarter results, with softer-than-expected performance in its North American snacks business offsetting steadier international trends.
The analysts lowered their fiscal 2026 earnings per share (EPS) estimate to $8.61 from $8.65 and slightly reduced their second quarter forecast to $2.18 from $2.19. The revision reflects weaker performance at PepsiCo Foods North America (PFNA) and expectations that its recovery will take longer to materialize in the second half of the year.
For the quarter, Bank of America now expects consolidated organic sales growth of 2.9%, down from a prior estimate of 3.1%. The full-year organic sales growth outlook was also cut to 3.0% from 3.4%.
Despite the downward revisions, the analysts noted continued strength in international markets, which are now expected to deliver 5.4% organic sales growth in the second quarter, up from a prior forecast of 4.9%. They suggested PepsiCo could still reiterate its full-year guidance when it reports results on July 9, though the underlying mix of performance may be less favorable.
The primary pressure point remains PFNA, where scanner data indicated a sequential deterioration in trends during the quarter. NielsenIQ data showed retail sales growth slowing to a 1.0% decline in the second quarter from 0.6% growth in the first. Bank of America attributed the weakness to macroeconomic pressures, inflation, and unfavorable weather conditions around Memorial Day.
As a result, the analysts now expect flat organic sales growth for PFNA in the second quarter, compared with a previous estimate of 1.5%, and have reduced their full-year forecast to 0.2% from 1.4%. They also pointed to softer sequential performance across major brands including Lay’s, Doritos, Tostitos, Cheetos, and Ruffles.
In contrast, PepsiCo’s beverages division showed modest improvement. Retail sales in North America rose 0.3% year over year in the second quarter, while volumes fell 3.5%, an improvement from the prior quarter. However, analysts noted ongoing challenges for core brands, with Pepsi continuing to lose market share and Mountain Dew underperforming its category.
Bank of America also lowered its price objective on PepsiCo to $164 from $173, based on 18 times estimated 2027 earnings, down from a prior multiple of 19 times. Shares traded hands at about $142 on Friday afternoon.
The firm maintained its ‘Neutral’ rating on the stock.
PepsiCo v 1. čtvrtletí fiskálního roku 2026 zvýšila core EPS na 1,61 USD při tržbách 19,44 miliardy USD a zvedla provozní marži na 16,5 %. Firma zároveň potvrdila celoroční růst organických tržeb o 2 % až 4 %.
The headline number for this article is $180, and I want to address it head on before anyone scrolls further.
Our proprietary 24/7 Wall St. price target for PepsiCo (NASDAQ:PEP | PEP Price Prediction) is $170.18 over the next 12 months, with a clear path to $180 in the bull case as the World Cup activation, productivity savings, and convenient foods recovery compound through 2027. With shares at $142.02, that base case implies 19.83% upside.
Metric Value Current Price $142.02 24/7 Wall St. Price Target $170.18 Upside 19.83% Research View Constructive Confidence Level 90% A Defensive Name That Just Went on Sale PEP has fallen 4.42% over the past 30 days and 1.19% in the last week, partly reflecting hawkish Fed commentary that dimmed appetite for dividend stocks. Zooming out, shares are up 14.55% over the past year and Pepsi remains a Consumer Defensive anchor with a beta of 0.359.
Q1 FY2026 delivered core EPS of $1.61 on revenue of $19.44 billion, a 8.5% year-over-year gain. Operating margin expanded 210 basis points to 16.5%, and management reaffirmed full-year organic revenue growth of 2% to 4%. The next earnings catalyst lands on July 9, 2026.
Why Bulls See $180 by Mid-2027 Piper Sandler maintains an Overweight rating with a $178 price target, while TIKR’s longer-term model points to $208 by December 2030. Our bull case scenario lands at $177.28 by June 2027, with the $180 mark within reach if Q2 and Q3 earnings extend the Q1 beat streak.
Growth drivers are tangible. CEO Ramon Laguarta noted that PBNA grew 9% in Q1, and international markets are accelerating around the 2026 World Cup activation. PFNA added 300 million new consumption occasions versus the prior year.
Laguarta stated: “We’ve seen momentum in PBNA, both organic and reported…And sequential growth in PFNA.” Add a $10 billion buyback authorization, the 54th consecutive dividend hike, and active institutional buying, and the bull math works.
The Risks Worth Watching Tariff-driven commodity costs hit PBNA with an 11 percentage point impact in Q4 25, and FY25 operating income fell 19.57% on Rockstar and Be & Cheery impairments totaling $1.993 billion. Volume softness in convenient foods and slower snack consumption tied to GLP-1 adoption could pressure organic growth toward the bottom of the 2% to 4% range. Our bear case scenario stops at $152.27.
The FY25 impairments were one-time charges. Operating cash flow still came in at $12.087 billion, with FCF conversion guided above 80%. Bulls argue the impairments reflect aggressive portfolio cleanup rather than core business deterioration.
PepsiCo Price Prediction 2026-2030 The 24/7 Wall St. price target stands at $170.18 with 90% model confidence. Q1 delivered +8.5% revenue growth and a 210 bp margin expansion, yet shares trade closer to the 52-week low than the high.
The setup looks constructive for a low-beta compounder with a 4% yield and a clear path to $180 by 2027. The thesis weakens if Fed hawkishness continues penalizing dividend payers through the back half of 2026.
Here is where our model projects PEP could trade, assuming current growth trajectories and margin recovery hold.
Year 24/7 Wall St. Price Target 2026 $156 2027 $180 2028 $202 2029 $224 2030 $247 These projections assume PEP continues executing the productivity and innovation strategy Laguarta outlined, with the World Cup activation and poppi integration supporting beverage growth.
Significant upside or downside could result from sustained commodity inflation, faster-than-expected GLP-1 impacts on snack volumes, or larger buyback execution against the new $10 billion authorization.
