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Pepsi's stock has barely moved in five years while Coca-Cola surged over 80%, yet Jim Cramer says that very underperformance makes one of them the smarter buy right now.

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PepsiCo kicked off its 26th NFL season campaign, “Tailgating Deserves Pepsi,” featuring Pro Football Hall of Famer Jerome Bettis as the “Pepsi gameday ref” alongside Justin Jefferson, complete with a free Pepsi Zero Sugar 12-pack offer running September 9 through September 14, or until 5,000 redemptions are reached. The gameday marketing machine is humming. The stock, less so.

Cramer’s Accidentally High Yield Thesis PepsiCo (NASDAQ:PEP | PEP Price Prediction) trades at $138.44, down 0.6% year to date and up just 4.51% over five years. Over that same five-year stretch, Coca-Cola (NYSE:KO) is up 83.42%, with a 28.09% year-to-date gain and a 34.77% one-year advance to $88.40.

Jim Cramer’s pitch for Pepsi rests on the very math that underperformance creates. On a July episode of Mad Money, he noted that “PepsiCo dropped nearly a buck sinking to a level where it sports a dividend yield north of 4%.” He has since framed the setup around a lower valuation, cheaper oil, and that accidental income. When Cramer earlier compared the two names, he reminded viewers that “the share price tells you nothing about a stock’s valuation vis a vis another stock. To make any kind of apples to apples comparison, you take a step back.”

Dividend Machine Keeps Grinding Pepsi raised its quarterly payout to $1.48 per share, up from $1.4225, with the latest ex-dividend date September 4 and payment date September 30. That marks the 54th consecutive annual increase, backed by a $10 billion buyback authorization through February 28, 2030. The yield sits at 4.04%, versus 2.32% at Coca-Cola.

Two Different Growth Stories Pepsi’s Q2 2026 revenue rose 6.4% year over year to $24.181B, with core EPS of $2.20. CEO Ramon Laguarta told analysts that “a category that was negative in volume now is positive in volume. We were losing share in volume. Now we’re gaining share in volume.” Still, the company signaled results could land at the low end of its EPS range, hampered by softer U.S. impulse channels.

Coca-Cola, by contrast, is compounding. Q2 delivered adjusted EPS of $0.97 and revenue of $13.380B, up 6.74% YoY, with 5% unit case volume growth and raised full-year guidance calling for comparable EPS growth of 9 to 10%. CEO Henrique Braun said, “We delivered a strong quarter with broad-based momentum across our business.”

Scoreboard Investors Actually Watch Pepsi trades at a P/E of 23 against Coke at 29, and Cramer’s view is that the discount plus the 4% yield offers protection. But the yield is elevated because the shares have stalled.

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Key Takeaways PepsiCo's global convenient foods organic volume rose 3%, while international volume increased 4%.U.S. salty snacks posted volume growth for a third straight quarter, with share gains across categories.Portion-control multipacks and permissible snacks delivered growth as PepsiCo broadened consumer choices. PepsiCo, Inc. (PEP - Free Report) is seeing improving momentum across its snack portfolio, supported by stronger international demand, portfolio innovation and targeted affordability initiatives. In the second quarter of 2026, global convenient foods organic volume increased 3%, while international convenient foods organic volume rose 4%, underscoring broad-based demand across key markets.

In North America, PepsiCo Foods North America continued to improve volume share across both U.S. savory and salty categories, alongside better household penetration trends. The U.S. salty-snack category has now delivered volume growth for three consecutive quarters. PepsiCo gained volume share across multiple categories, including potato chips, tortilla chips, pretzels, curls and puffs, SunChips, Quaker rice snacks and other offerings. Doritos, Ruffles and Miss Vickie’s also generated both volume and net revenue growth during the quarter.

Portfolio diversification is another key driver. Portion-control multipacks, representing more than $3.5 billion in annual net revenues, delivered volume and revenue growth. Meanwhile, permissible offerings such as Baked, Simply, SunChips, Siete and Quaker Rice Cakes also posted strong gains. PepsiCo is further expanding choices through protein, fiber and diverse-ingredient products, including Doritos Protein, PopCorners Protein and SunChips Fiber.

Internationally, PepsiCo is scaling brands, sharpening price-pack architecture, and emphasizing locally relevant flavors and formats. Together, these initiatives are broadening consumer appeal and supporting volume growth despite pressure on household budgets.

Are PEP’s Snacking Peers Like MDLZ & HSY Gaining Traction?PepsiCo’s snacking peers, including Mondelez International Inc. (MDLZ - Free Report) and The Hershey Company (HSY - Free Report) , are also leaning on portfolio innovation, brand strength and evolving consumer preferences to sustain momentum in the competitive snacks market.

Mondelez International is gaining traction across its snack portfolio, supported by emerging-market strength, broader distribution and innovation. Management cited strong volume in the second quarter of 2026, with North America delivering positive volume mix and share gains across categories. Growth was aided by Ritz, Oreo, Perfect Snacks, Tate’s and Hu, alongside value-channel and away-from-home expansion. Innovation in protein, gluten-free, zero-sugar and premium offerings is also helping broaden consumption occasions and sustain momentum globally.

Hershey’s snack portfolio is gaining momentum as strong consumer demand supports brands such as Dot’s Pretzels, SkinnyPop and LesserEvil. Management said that Dot’s continues to lead growth, with supply-chain constraints largely behind the business and automation helping improve throughput. Premium, permissible positioning is also resonating, while stronger activation around salty-snack occasions, including fall football, should help capture additional demand and support volume improvement.

PEP’s Price Performance, Valuation & EstimatesShares of PepsiCo have lost 2.2% in the past three months against the industry’s rise of 4.9%.

Image Source: Zacks Investment Research

From a valuation standpoint, PEP trades at a forward price-to-earnings ratio of 15.54X, below the industry’s average of 19.41X.

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 estimate for 2026 has been unchanged in the past 30 days. Meanwhile, the consensus mark for 2027 EPS has moved down by a penny in the past seven days.

Image Source: Zacks Investment Research

PEP currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Bcwm LLC purchased a new stake in shares of PepsiCo, Inc. (NASDAQ:PEP – Free Report) during the 2nd quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm purchased 45,490 shares of the company’s stock, valued at approximately $6,159,000.

A number of other hedge funds also recently added to or reduced their stakes in PEP. Auto Owners Insurance Co lifted its holdings in PepsiCo by 14,857.8% during the fourth quarter. Auto Owners Insurance Co now owns 49,252,907 shares of the company’s stock worth $7,068,777,000 after buying an additional 48,923,629 shares during the period. Norges Bank purchased a new stake in PepsiCo in the fourth quarter valued at about $3,018,813,000. Legal & General Group Plc acquired a new stake in PepsiCo in the 2nd quarter worth approximately $1,200,274,000. Canada Pension Plan Investment Board acquired a new stake in shares of PepsiCo during the second quarter worth $487,558,000. Finally, Diamant Asset Management Inc. grew its holdings in shares of PepsiCo by 16,146.5% during the first quarter. Diamant Asset Management Inc. now owns 3,586,423 shares of the company’s stock valued at $556,936,000 after buying an additional 3,564,348 shares during the last quarter. 73.07% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In PEP has been the topic of a number of research reports. Evercore set a $150.00 price objective on PepsiCo in a report on Thursday, July 9th. Royal Bank Of Canada decreased their target price on PepsiCo from $163.00 to $161.00 and set a “sector perform” rating for the company in a report on Friday, July 10th. Citigroup lowered PepsiCo from a “buy” rating to a “neutral” rating and dropped their target price for the company from $170.00 to $145.00 in a research report on Friday, July 10th. Sanford C. Bernstein set a $134.00 price target on shares of PepsiCo in a research report on Friday, July 10th. Finally, Jefferies Financial Group decreased their price objective on shares of PepsiCo from $162.00 to $152.00 and set a “hold” rating for the company in a research note on Friday, July 10th. Seven analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus price target of $157.90.

Read Our Latest Stock Analysis on PEP PepsiCo Stock Down 0.5% Shares of PEP opened at $140.34 on Tuesday. The company has a market capitalization of $191.55 billion, a price-to-earnings ratio of 18.39, a PEG ratio of 3.10 and a beta of 0.35. PepsiCo, Inc. has a 52 week low of $133.73 and a 52 week high of $171.48. The stock’s 50-day moving average price is $139.85 and its 200-day moving average price is $149.20. The company has a quick ratio of 0.74, a current ratio of 0.93 and a debt-to-equity ratio of 1.91.

PepsiCo (NASDAQ:PEP – Get Free Report) last released its quarterly earnings data on Thursday, July 9th. The company reported $2.20 EPS for the quarter, topping the consensus estimate of $2.19 by $0.01. The business had revenue of $24.18 billion for the quarter, compared to analyst estimates of $23.95 billion. PepsiCo had a return on equity of 54.63% and a net margin of 10.78%.The business’s quarterly revenue was up 6.4% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.92 EPS. PepsiCo has set its FY 2026 guidance at 8.550-8.710 EPS. On average, sell-side analysts predict that PepsiCo, Inc. will post 8.57 EPS for the current year.

PepsiCo Announces Dividend The company also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Investors of record on Friday, September 4th will be issued a dividend of $1.48 per share. The ex-dividend date of this dividend is Friday, September 4th. This represents a $5.92 dividend on an annualized basis and a yield of 4.2%. PepsiCo’s dividend payout ratio is 77.59%.

Insider Buying and Selling In other news, EVP David Flavell sold 2,900 shares of the firm’s stock in a transaction dated Monday, July 27th. The stock was sold at an average price of $139.54, for a total transaction of $404,666.00. Following the sale, the executive vice president directly owned 74,825 shares in the company, valued at $10,441,080.50. This trade represents a 3.73% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Corporate insiders own 0.12% of the company’s stock.

PepsiCo Profile (Free Report)

PepsiCo, Inc (NASDAQ: PEP) is a multinational food and beverage company headquartered in Purchase, New York. The company develops, manufactures, markets and sells a broad portfolio of branded food and beverage products, including carbonated and noncarbonated soft drinks, bottled water, sports drinks, juices, ready-to-drink teas and coffees, salty snacks, cereals, and other convenient foods. Its leading consumer brands include Pepsi, Mountain Dew, Gatorade, Tropicana, Quaker, Lay’s, Doritos and Cheetos, among others.

Formed through the 1965 merger of Pepsi-Cola and Frito-Lay, PepsiCo has grown into a global business with integrated manufacturing, distribution and marketing operations.

See Also Five stocks we like better than PepsiCo Securing AI: 5 Most-Upgraded Stocks From the Q2 Reporting Season Insiders Are Betting Big on These 3 Healthcare Stocks 3 Stocks for Investors Who Still Believe Cash Is King Dollar General and Dollar Tree Are Recovering, But Not for the Same Reason Want to see what other hedge funds are holding PEP? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for PepsiCo, Inc. (NASDAQ:PEP – Free Report).

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Judging by their stock performance, PepsiCo (PEP -0.52%) and Coca-Cola (KO -1.10%) seem like their businesses are moving in opposite directions. Shares of PepsiCo have fallen 29% from their high and are trading near a 52-week low, while Coca-Cola is up 28% year to date and sitting near new all-time highs.

Coca-Cola is clearly executing better right now, but PepsiCo is still growing volumes, revenue, and earnings. That's why the sell-off looks less like a red flag and more like a potential opportunity, especially for dividend investors.

Image source: Getty Images.

Why Coca-Cola is up, and PepsiCo down Many consumer goods companies are reporting softer demand as higher gas prices pressure household budgets. Coca-Cola has largely shrugged that off, delivering 6% year-over-year organic revenue growth last quarter, with unit case volume up a solid 5%. Better still, adjusted earnings per share climbed 11% year over year.

PepsiCo also grew organic revenue 2.4% over the year-ago quarter, slower than Coca-Cola's pace. Moreover, adjusted earnings rose just 1% and came in below Wall Street estimates, which helps explain why investors have been harder on the stock.

The difference in business models matters, too. Coca-Cola is a simpler, beverage-focused company, while PepsiCo splits its portfolio between beverages and snack foods. That structure can be a strength at times, but it also tends to produce lower margins.

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In the second quarter, Coca-Cola posted a 35% operating margin, while PepsiCo delivered 16.5%. In a choppy macroeconomic environment, investors are rewarding Coke because of its stronger sales and margins.

Why PepsiCo still looks like the better buy Coca-Cola trades at a forward price-to-earnings (P/E) multiple of 27, which appears to be a fair assessment of its brand value and financial performance. PepsiCo, however, trades at a modest 16 times forward earnings estimates -- a valuation that may be pricing in too much pessimism.

Importantly, PepsiCo is still growing. Global food volume rose 3% in the second quarter, and beverage volumes increased 2%. That's below Coca-Cola's 5% volume growth, but it's meaningful growth for PepsiCo when it's trading at a much lower forward P/E.

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Management also expects PepsiCo's North American business to improve from here -- just at a slower pace than it previously thought. PepsiCo still has a wide competitive moat based on strong brands, such as Gatorade, Quaker Oats, and Doritos, among others, and a global distribution system. Over time, investors can expect a business with these assets to compound in value.

Meanwhile, shareholders are getting paid to wait. PepsiCo has a long history of dividend growth and just raised its quarterly payout by 4% to $1.48 per share, putting the forward yield at 4.2% -- nearly twice Coca-Cola's 2.35% forward yield.

That dividend is backed by cash generation. PepsiCo produced $9.3 billion in free cash flow over the past 12 months and paid $7.8 billion in dividends.

Coca-Cola has earned its rerating. But at today's prices, PepsiCo looks like the better value.

Cullen Capital Management LLC bought a new position in PepsiCo, Inc. (NASDAQ:PEP – Free Report) during the second quarter, according to its most recent Form 13F filing with the SEC. The firm bought 6,224 shares of the company’s stock, valued at approximately $843,000.

A number of other large investors have also made changes to their positions in the stock. Evergreen Advisors LLC purchased a new position in PepsiCo during the first quarter worth approximately $25,000. Gunpowder Capital Management LLC dba Oliver Wealth Management purchased a new stake in PepsiCo in the 4th quarter valued at $26,000. Swiss RE Ltd. acquired a new stake in shares of PepsiCo in the 4th quarter worth $28,000. Atlatl Advisers LLC purchased a new position in shares of PepsiCo during the 2nd quarter worth $31,000. Finally, Imprint Wealth LLC acquired a new position in shares of PepsiCo during the 3rd quarter valued at about $31,000. 73.07% of the stock is currently owned by hedge funds and other institutional investors.

Trending Headlines about PepsiCo Here are the key news stories impacting PepsiCo this week:

Positive Sentiment: Jim Cramer highlighted PepsiCo as a defensive large-cap opportunity, citing its roughly 4% dividend yield and the potential benefit of lower oil prices. Cheaper fuel could support consumer spending and reduce transportation and operating costs. Jim Cramer Shares Why PepsiCo Caught His Eye During Consumer Headwinds Positive Sentiment: Investors remain attracted to PepsiCo’s 54-year record of consecutive dividend increases and comparatively reasonable valuation. Improving international results could help offset continuing weakness in North America, supporting the case for income-oriented investors. Most Investors Overlook This. I’m Buying PepsiCo for Its Dividend Positive Sentiment: PepsiCo is pursuing growth beyond its traditional snack portfolio by introducing and emphasizing global flavors, a strategy that could broaden consumer appeal and create new avenues for international growth. PepsiCo Bets on Global Flavors to Grow Beyond Snacks Neutral Sentiment: Commentary describing consumer staples as a lagging sector frames PepsiCo as a value opportunity rather than a near-term growth leader. The investment appeal depends on the stock’s discounted valuation, dividend support and execution on its recovery plans. The Consumer Staples Sector Is Lagging the S&P 500 Negative Sentiment: Texas authorities are investigating PepsiCo and Kraft Heinz over claims involving avocado oil. The outcome and scope of the investigation are unclear, but regulatory scrutiny could create legal, reputational or product-related costs. PepsiCo, Kraft Heinz Under Investigation in Texas Over Avocado Oil Claims Negative Sentiment: Analysts note that PepsiCo’s dividend faces pressure from slower growth, persistent North American weakness and a more difficult recovery than the commodity-driven risks facing Chevron. This raises questions about future payout growth, despite the company’s long dividend history. Chevron or PepsiCo: Whose Dividend Is Standing on Thinner Ice? Insider Buying and Selling In other news, EVP David Flavell sold 2,900 shares of the firm’s stock in a transaction on Monday, July 27th. The stock was sold at an average price of $139.54, for a total transaction of $404,666.00. Following the completion of the transaction, the executive vice president directly owned 74,825 shares in the company, valued at $10,441,080.50. This trade represents a 3.73% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. 0.12% of the stock is owned by company insiders. PepsiCo Trading Up 1.0% Shares of PEP stock opened at $141.07 on Friday. PepsiCo, Inc. has a 1-year low of $133.73 and a 1-year high of $171.48. The firm has a market cap of $192.55 billion, a PE ratio of 18.49, a price-to-earnings-growth ratio of 3.10 and a beta of 0.35. The company has a 50-day moving average of $139.86 and a two-hundred day moving average of $149.51. The company has a debt-to-equity ratio of 1.91, a current ratio of 0.93 and a quick ratio of 0.74.

PepsiCo (NASDAQ:PEP – Get Free Report) last released its quarterly earnings results on Thursday, July 9th. The company reported $2.20 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.19 by $0.01. PepsiCo had a net margin of 10.78% and a return on equity of 54.63%. The business had revenue of $24.18 billion for the quarter, compared to the consensus estimate of $23.95 billion. During the same period in the previous year, the firm earned $0.92 EPS. The business’s revenue was up 6.4% on a year-over-year basis. PepsiCo has set its FY 2026 guidance at 8.550-8.710 EPS. On average, analysts predict that PepsiCo, Inc. will post 8.57 EPS for the current year.

PepsiCo Dividend Announcement The company also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Friday, September 4th will be given a $1.48 dividend. The ex-dividend date of this dividend is Friday, September 4th. This represents a $5.92 dividend on an annualized basis and a yield of 4.2%. PepsiCo’s payout ratio is presently 77.59%.

Analyst Upgrades and Downgrades Several research firms recently issued reports on PEP. BNP Paribas Exane cut their price objective on shares of PepsiCo from $195.00 to $183.00 and set an “outperform” rating for the company in a research report on Wednesday, July 8th. Citigroup cut shares of PepsiCo from a “buy” rating to a “neutral” rating and dropped their price target for the company from $170.00 to $145.00 in a research note on Friday, July 10th. Morgan Stanley cut their price target on shares of PepsiCo from $180.00 to $160.00 and set an “equal weight” rating for the company in a report on Friday, July 10th. Sanford C. Bernstein set a $134.00 price objective on PepsiCo in a report on Friday, July 10th. Finally, Barclays increased their price objective on PepsiCo from $138.00 to $142.00 and gave the stock an “equal weight” rating in a research report on Tuesday, July 21st. Seven equities research analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, PepsiCo presently has an average rating of “Hold” and an average target price of $157.90.

Get Our Latest Stock Analysis on PepsiCo

PepsiCo Profile (Free Report)

PepsiCo, Inc (NASDAQ: PEP) is a multinational food and beverage company headquartered in Purchase, New York. The company develops, manufactures, markets and sells a broad portfolio of branded food and beverage products, including carbonated and noncarbonated soft drinks, bottled water, sports drinks, juices, ready-to-drink teas and coffees, salty snacks, cereals, and other convenient foods. Its leading consumer brands include Pepsi, Mountain Dew, Gatorade, Tropicana, Quaker, Lay’s, Doritos and Cheetos, among others.

Formed through the 1965 merger of Pepsi-Cola and Frito-Lay, PepsiCo has grown into a global business with integrated manufacturing, distribution and marketing operations.

Featured Articles Five stocks we like better than PepsiCo From SaaS-pocalypse to Perfect Storm: Workday’s AI Growth Story Strengthens These 3 GARP Stocks Show Why Growth and Value Do Not Have to Clash Venture Into High-Volatility Corners of the Market With These 3 ETFs 3 Retail Stocks to Watch After a Big Consumer Earnings Week Want to see what other hedge funds are holding PEP? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for PepsiCo, Inc. (NASDAQ:PEP – Free Report).

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Dearborn Partners LLC bought a new position in shares of PepsiCo, Inc. (NASDAQ:PEP – Free Report) during the second quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm bought 51,903 shares of the company’s stock, valued at approximately $8,060,000.

Several other hedge funds have also added to or reduced their stakes in the company. Swiss Life Asset Management Ltd raised its stake in PepsiCo by 11.4% in the 4th quarter. Swiss Life Asset Management Ltd now owns 415,271 shares of the company’s stock worth $59,600,000 after purchasing an additional 42,335 shares in the last quarter. National Pension Service grew its position in shares of PepsiCo by 2.5% during the 4th quarter. National Pension Service now owns 3,143,939 shares of the company’s stock worth $451,218,000 after purchasing an additional 77,051 shares in the last quarter. Allstate Corp increased its holdings in shares of PepsiCo by 108.1% during the fourth quarter. Allstate Corp now owns 104,723 shares of the company’s stock worth $15,030,000 after purchasing an additional 54,405 shares during the period. First Nebraska Trust Co bought a new position in shares of PepsiCo during the first quarter worth approximately $10,782,000. Finally, Knights of Columbus Asset Advisors LLC raised its position in shares of PepsiCo by 90.0% in the fourth quarter. Knights of Columbus Asset Advisors LLC now owns 94,652 shares of the company’s stock valued at $13,584,000 after buying an additional 44,824 shares in the last quarter. 73.07% of the stock is owned by institutional investors and hedge funds.

PepsiCo Stock Up 1.0% Shares of NASDAQ:PEP opened at $141.07 on Friday. The company has a fifty day moving average of $139.86 and a 200-day moving average of $149.51. The company has a market capitalization of $192.55 billion, a PE ratio of 18.49, a price-to-earnings-growth ratio of 3.10 and a beta of 0.35. The company has a debt-to-equity ratio of 1.91, a quick ratio of 0.74 and a current ratio of 0.93. PepsiCo, Inc. has a 52-week low of $133.73 and a 52-week high of $171.48.

PepsiCo (NASDAQ:PEP – Get Free Report) last announced its quarterly earnings results on Thursday, July 9th. The company reported $2.20 EPS for the quarter, beating analysts’ consensus estimates of $2.19 by $0.01. The company had revenue of $24.18 billion during the quarter, compared to analysts’ expectations of $23.95 billion. PepsiCo had a return on equity of 54.63% and a net margin of 10.78%.PepsiCo’s revenue was up 6.4% compared to the same quarter last year. During the same period in the prior year, the company earned $0.92 EPS. PepsiCo has set its FY 2026 guidance at 8.550-8.710 EPS. On average, equities analysts predict that PepsiCo, Inc. will post 8.57 EPS for the current fiscal year. PepsiCo Announces Dividend The company also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Friday, September 4th will be paid a dividend of $1.48 per share. This represents a $5.92 dividend on an annualized basis and a dividend yield of 4.2%. The ex-dividend date of this dividend is Friday, September 4th. PepsiCo’s dividend payout ratio (DPR) is presently 77.59%.

Insider Buying and Selling at PepsiCo In other news, EVP David Flavell sold 2,900 shares of the business’s stock in a transaction dated Monday, July 27th. The stock was sold at an average price of $139.54, for a total transaction of $404,666.00. Following the sale, the executive vice president directly owned 74,825 shares in the company, valued at approximately $10,441,080.50. The trade was a 3.73% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Company insiders own 0.12% of the company’s stock.

Wall Street Analyst Weigh In Several research firms recently weighed in on PEP. Citigroup cut shares of PepsiCo from a “buy” rating to a “neutral” rating and cut their price objective for the stock from $170.00 to $145.00 in a research report on Friday, July 10th. Royal Bank Of Canada dropped their target price on shares of PepsiCo from $163.00 to $161.00 and set a “sector perform” rating for the company in a research report on Friday, July 10th. Piper Sandler set a $176.00 price target on shares of PepsiCo in a report on Thursday, July 9th. Deutsche Bank Aktiengesellschaft set a $155.00 price target on shares of PepsiCo in a research report on Friday, July 10th. Finally, Morgan Stanley lowered their price objective on shares of PepsiCo from $180.00 to $160.00 and set an “equal weight” rating for the company in a research report on Friday, July 10th. Seven investment analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus price target of $157.90.

Get Our Latest Stock Report on PEP

Key Stories Impacting PepsiCo Here are the key news stories impacting PepsiCo this week:

Positive Sentiment: Jim Cramer highlighted PepsiCo as a defensive large-cap opportunity, citing its roughly 4% dividend yield and the potential benefit of lower oil prices. Cheaper fuel could support consumer spending and reduce transportation and operating costs. Jim Cramer Shares Why PepsiCo Caught His Eye During Consumer Headwinds Positive Sentiment: Investors remain attracted to PepsiCo’s 54-year record of consecutive dividend increases and comparatively reasonable valuation. Improving international results could help offset continuing weakness in North America, supporting the case for income-oriented investors. Most Investors Overlook This. I’m Buying PepsiCo for Its Dividend Positive Sentiment: PepsiCo is pursuing growth beyond its traditional snack portfolio by introducing and emphasizing global flavors, a strategy that could broaden consumer appeal and create new avenues for international growth. PepsiCo Bets on Global Flavors to Grow Beyond Snacks Neutral Sentiment: Commentary describing consumer staples as a lagging sector frames PepsiCo as a value opportunity rather than a near-term growth leader. The investment appeal depends on the stock’s discounted valuation, dividend support and execution on its recovery plans. The Consumer Staples Sector Is Lagging the S&P 500 Negative Sentiment: Texas authorities are investigating PepsiCo and Kraft Heinz over claims involving avocado oil. The outcome and scope of the investigation are unclear, but regulatory scrutiny could create legal, reputational or product-related costs. PepsiCo, Kraft Heinz Under Investigation in Texas Over Avocado Oil Claims Negative Sentiment: Analysts note that PepsiCo’s dividend faces pressure from slower growth, persistent North American weakness and a more difficult recovery than the commodity-driven risks facing Chevron. This raises questions about future payout growth, despite the company’s long dividend history. Chevron or PepsiCo: Whose Dividend Is Standing on Thinner Ice? About PepsiCo (Free Report)

PepsiCo, Inc (NASDAQ: PEP) is a multinational food and beverage company headquartered in Purchase, New York. The company develops, manufactures, markets and sells a broad portfolio of branded food and beverage products, including carbonated and noncarbonated soft drinks, bottled water, sports drinks, juices, ready-to-drink teas and coffees, salty snacks, cereals, and other convenient foods. Its leading consumer brands include Pepsi, Mountain Dew, Gatorade, Tropicana, Quaker, Lay’s, Doritos and Cheetos, among others.

Formed through the 1965 merger of Pepsi-Cola and Frito-Lay, PepsiCo has grown into a global business with integrated manufacturing, distribution and marketing operations.

Featured Articles Five stocks we like better than PepsiCo From SaaS-pocalypse to Perfect Storm: Workday’s AI Growth Story Strengthens These 3 GARP Stocks Show Why Growth and Value Do Not Have to Clash Venture Into High-Volatility Corners of the Market With These 3 ETFs 3 Retail Stocks to Watch After a Big Consumer Earnings Week

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Key Takeaways PEP expects international revenues to top $40 billion this year, with overseas operations profit-accretive.International beverages are roughly two-thirds of volumes, while foods represent more than half. Lower per-capita consumption and market-share could make overseas markets the biggest growth source. PepsiCo, Inc. (PEP - Free Report) is increasingly leaning on its international operations as a key engine of growth, adding greater geographic balance to a business historically anchored by North America. The company’s overseas operations have gained considerable scale after several years of sustained investment, with international beverage volumes now accounting for roughly two-thirds of companywide volumes and international foods representing more than half. PepsiCo expects the international business to cross $40 billion in revenues this year while describing it as profit accretive and an increasingly important source of long-term diversification.

The strength is also broad-based geographically. PepsiCo noted resilient trends across markets, including Vietnam, Thailand, China and the Middle East, despite pressure from elevated fuel costs. Europe has remained healthy, supported in part by World Cup-related activation, while Latin America continues to trend positively despite growing somewhat slower than other international markets. Category expansion and market-share gains, particularly in beverages, are supporting the momentum, while PepsiCo’s global procurement capabilities and operating agility are helping the company navigate inflation and raw-material availability across markets.

More importantly, the international shift appears structural rather than temporary. PepsiCo sees significant runway from lower per-capita consumption and market-share opportunities across many overseas markets and expects international operations to remain a major growth driver in the coming years. The company is also intent on maintaining capital, marketing and talent investments internationally even as it works to revive North American growth. PepsiCo believes international markets could become its biggest source of growth over the next five to 10 years, reinforcing the view that the company’s growth profile is becoming increasingly global.

International Growth Trends at KDP and Coca-ColaKeurig Dr Pepper Inc. (KDP - Free Report) and The Coca-Cola Company (KO - Free Report) are benefiting from stronger overseas momentum, highlighting the growing importance of international markets to their broader growth strategies.

Keurig is seeing its international business become a more meaningful contributor to growth, supported by improving momentum across Mexico and Canada. KDP International’s second-quarter 2026 net sales increased 12.4% on a constant-currency basis, reflecting a balanced contribution from higher volumes and pricing. Mexico returned to volume growth as the impact of the beverage tax moderated, while brands such as Peñafiel, Ades and Twist benefited from distribution expansion and stronger execution. Canada also delivered broad-based growth across carbonated soft drinks, alcohol alternatives, energy and ready-to-drink tea. The addition of JDE Peet’s further broadens KDP’s geographic exposure, although its U.S. beverage operations remain an important growth driver.

Coca-Cola continues to demonstrate the advantages of its broad international footprint, with overseas markets playing an important role in driving systemwide volume growth. In the second quarter of 2026, unit case volume advanced across Europe, the Middle East and Africa, Latin America and Asia Pacific, with Asia Pacific delivering particularly strong growth. India, China and Brazil were among the markets contributing to Coca-Cola’s global volume expansion, while Trademark Coca-Cola posted growth across all geographic operating segments. Continued momentum across emerging and developed markets, alongside strength in categories such as sparkling beverages, water and sports drinks, underscores how Coca-Cola’s diversified international presence remains central to its overall growth profile.

PEP’s Price Performance, Valuation & EstimatesShares of PepsiCo have lost 4.7% in the past three months against the industry’s rise of 5.7%.

Image Source: Zacks Investment Research

From a valuation standpoint, PEP trades at a forward price-to-earnings ratio of 16.22X, below the industry’s average of 20.05X.

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.

Image Source: Zacks Investment Research

PEP stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Global Retirement Partners LLC purchased a new stake in PepsiCo, Inc. (NASDAQ:PEP – Free Report) during the 2nd quarter, according to the company in its most recent disclosure with the SEC. The institutional investor purchased 31,067 shares of the company’s stock, valued at approximately $4,206,000.

A number of other hedge funds have also modified their holdings of the business. Swiss Life Asset Management Ltd boosted its position in shares of PepsiCo by 11.4% during the fourth quarter. Swiss Life Asset Management Ltd now owns 415,271 shares of the company’s stock worth $59,600,000 after buying an additional 42,335 shares during the period. National Pension Service raised its holdings in shares of PepsiCo by 2.5% in the 4th quarter. National Pension Service now owns 3,143,939 shares of the company’s stock valued at $451,218,000 after buying an additional 77,051 shares during the period. Allstate Corp raised its holdings in shares of PepsiCo by 108.1% in the 4th quarter. Allstate Corp now owns 104,723 shares of the company’s stock valued at $15,030,000 after buying an additional 54,405 shares during the period. First Nebraska Trust Co acquired a new position in PepsiCo during the 1st quarter worth about $10,782,000. Finally, Knights of Columbus Asset Advisors LLC boosted its holdings in PepsiCo by 90.0% during the 4th quarter. Knights of Columbus Asset Advisors LLC now owns 94,652 shares of the company’s stock valued at $13,584,000 after acquiring an additional 44,824 shares during the period. 73.07% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets A number of analysts have issued reports on the stock. Bank of America cut their price target on shares of PepsiCo from $173.00 to $164.00 and set a “neutral” rating on the stock in a research note on Thursday, June 25th. Piper Sandler set a $176.00 price objective on shares of PepsiCo in a research note on Thursday, July 9th. Sanford C. Bernstein set a $134.00 price objective on shares of PepsiCo in a report on Friday, July 10th. BNP Paribas Exane cut their target price on shares of PepsiCo from $195.00 to $183.00 and set an “outperform” rating on the stock in a research note on Wednesday, July 8th. Finally, UBS Group set a $159.00 target price on shares of PepsiCo in a report on Thursday, July 9th. Seven research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, PepsiCo has a consensus rating of “Hold” and a consensus price target of $157.90.

Check Out Our Latest Report on PEP PepsiCo Stock Performance Shares of PepsiCo stock opened at $143.48 on Monday. The business has a 50-day simple moving average of $140.02 and a 200-day simple moving average of $150.26. The company has a debt-to-equity ratio of 1.91, a quick ratio of 0.74 and a current ratio of 0.93. PepsiCo, Inc. has a one year low of $133.73 and a one year high of $171.48. The company has a market cap of $195.83 billion, a PE ratio of 18.80, a P/E/G ratio of 3.15 and a beta of 0.35.

PepsiCo (NASDAQ:PEP – Get Free Report) last issued its earnings results on Thursday, July 9th. The company reported $2.20 earnings per share for the quarter, beating the consensus estimate of $2.19 by $0.01. PepsiCo had a net margin of 10.78% and a return on equity of 54.63%. The firm had revenue of $24.18 billion for the quarter, compared to analysts’ expectations of $23.95 billion. During the same quarter last year, the company earned $0.92 earnings per share. The firm’s revenue was up 6.4% compared to the same quarter last year. PepsiCo has set its FY 2026 guidance at 8.550-8.710 EPS. On average, equities research analysts forecast that PepsiCo, Inc. will post 8.57 EPS for the current fiscal year.

PepsiCo Dividend Announcement The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Friday, September 4th will be given a dividend of $1.48 per share. This represents a $5.92 annualized dividend and a dividend yield of 4.1%. The ex-dividend date of this dividend is Friday, September 4th. PepsiCo’s payout ratio is 77.59%.

Insider Activity In related news, EVP David Flavell sold 2,900 shares of the business’s stock in a transaction on Monday, July 27th. The shares were sold at an average price of $139.54, for a total transaction of $404,666.00. Following the completion of the transaction, the executive vice president owned 74,825 shares in the company, valued at approximately $10,441,080.50. The trade was a 3.73% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Company insiders own 0.12% of the company’s stock.

About PepsiCo (Free Report)

PepsiCo, Inc (NASDAQ: PEP) is a multinational food and beverage company headquartered in Purchase, New York. The company develops, manufactures, markets and sells a broad portfolio of branded food and beverage products, including carbonated and noncarbonated soft drinks, bottled water, sports drinks, juices, ready-to-drink teas and coffees, salty snacks, cereals, and other convenient foods. Its leading consumer brands include Pepsi, Mountain Dew, Gatorade, Tropicana, Quaker, Lay’s, Doritos and Cheetos, among others.

Formed through the 1965 merger of Pepsi-Cola and Frito-Lay, PepsiCo has grown into a global business with integrated manufacturing, distribution and marketing operations.

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Investors looking for dividends will likely be disappointed by the yield of the S&P 500 index. In the wake of its long rally, the broad market index yields a paltry 1%. You calculate any investment's yield by dividing the payout by the investment's price. Hence, when the price grows faster than the dividend, the yield shrinks.

By contrast, in 1982, amid a severe recession, when share prices fell, the index yielded 6.2%. More recently, in January 2009, during the Great Recession, its yield rose to 3.2%.

Still, you can find individual stocks within the index today that have much higher yields as well as upside price potential. PepsiCo (PEP +1.37%), which has raised dividends annually for many years, belongs in that category.

Image source: Getty Images.

Price cuts are a positive sign After nine consecutive quarters of declining sales volumes, and facing broadening consumer irritation over its pattern of price hikes, the food and beverage company decided to alter its strategy early this year. Rather than continuing to raise prices, management began to cut them in a bid to increase consumer demand and keep competition from lower-priced private-label brands at bay.

You can see the positive results of that pivot already. PepsiCo's revenue grew 2.6% year over year in the first quarter, with rising volumes contributing slightly. Matters continued to head in the right direction in the second quarter, with higher sales volume accounting for about 1 percentage point of the company's 2.4% revenue gain.

That contrasts to last year, when price increases were solely responsible for its top-line increases. For all of 2025, revenue rose 2%, with higher prices adding 4 percentage points and lower sales volume subtracting 2 percentage points.

The business seems to be on a more solid footing. After all, a company can't continue raising prices while losing sales volume.

Secure dividends Meanwhile, investors who own PepsiCo can feel good about their dividends. In fact, earlier this year, the board of directors raised the payout by 4% to an annualized $5.92 per share. With a payout ratio (dividends divided by earnings) of 75%, PepsiCo can certainly afford the higher payout.

The latest increase made it 54 consecutive years that the company has increased payments. The streak has earned PepsiCo a spot as a Dividend King, a designation reserved for those rare companies that have raised their payouts for at least 50 straight years.

At the new annualized rate and the current share price, PepsiCo's stock has a 4.2% yield. That's quadruple the yield of the S&P 500.

Valuation remains attractive Though the business is heading in the right direction, the market seems to have adopted a wait-and-see attitude with regards to the stock. It has fallen 3.9% this year through Monday morning, in stark contrast to the S&P 500's 13.6% gain.

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However, that's made the valuation more compelling. PepsiCo's price-to-earnings (P/E) ratio has dropped from 24 to 18 this year. That's below its 10-year median of 26.

The shares also trade at a lower P/E multiple than the overall market. The S&P 500 has a P/E ratio of 30.

But PepsiCo won't stay a bargain forever. In light of its high dividend yield, secure payout, and compelling valuation, and with product sales volumes starting to recover thanks to management's actions, investors should view this as a narrow opportunity to purchase PepsiCo stock.

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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.

Contact [email protected] for any questions or corrections.

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.

Image Source: Zacks Investment Research

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.

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

Our Standards: The Thomson Reuters Trust Principles., opens new tab

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.

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

Our Standards: The Thomson Reuters Trust Principles., opens new tab

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, 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’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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9.7.2026 12:29, PEP

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

Michal Šnobl, Fio banka, a.s.

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, 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.