Bank of Nova Scotia lessened its holdings in PepsiCo, Inc. (NASDAQ:PEP – Free Report) by 12.5% during the first quarter, according to its most recent disclosure with the SEC. The institutional investor owned 943,071 shares of the company’s stock after selling 134,729 shares during the period. Bank of Nova Scotia owned 0.07% of PepsiCo worth $146,450,000 as of its most recent SEC filing.
Several other hedge funds and other institutional investors have also added to or reduced their stakes in PEP. Vanguard Group Inc. raised its holdings in shares of PepsiCo by 1.2% during the 4th quarter. Vanguard Group Inc. now owns 138,483,870 shares of the company’s stock valued at $19,875,205,000 after buying an additional 1,612,652 shares in the last quarter. State Street Corp boosted its stake in PepsiCo by 1.8% in the third quarter. State Street Corp now owns 59,499,819 shares of the company’s stock worth $8,356,155,000 after buying an additional 1,079,970 shares in the last quarter. Auto Owners Insurance Co grew its position 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 valued at $7,068,777,000 after acquiring an additional 48,923,629 shares during the last quarter. Geode Capital Management LLC raised its stake in shares of PepsiCo by 1.1% during the fourth quarter. Geode Capital Management LLC now owns 33,617,937 shares of the company’s stock worth $4,814,835,000 after acquiring an additional 360,936 shares in the last quarter. Finally, Charles Schwab Investment Management Inc. lifted its holdings in shares of PepsiCo by 1.1% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 28,090,426 shares of the company’s stock worth $4,031,646,000 after acquiring an additional 295,955 shares during the last quarter. 73.07% of the stock is currently owned by hedge funds and other institutional investors.
PepsiCo Trading Down 0.5% Shares of PEP opened at $134.95 on Friday. The stock has a market capitalization of $184.19 billion, a P/E ratio of 17.69, a PEG ratio of 2.98 and a beta of 0.36. PepsiCo, Inc. has a twelve month low of $133.73 and a twelve month high of $171.48. The company has a quick ratio of 0.74, a current ratio of 0.93 and a debt-to-equity ratio of 1.91. The firm has a fifty day simple moving average of $142.36 and a two-hundred day simple moving average of $151.03.
PepsiCo (NASDAQ:PEP – Get Free Report) last released its quarterly earnings data 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. The firm had revenue of $24.18 billion for the quarter, compared to analysts’ expectations of $23.95 billion. PepsiCo had a net margin of 10.78% and a return on equity of 54.63%. The company’s revenue for the quarter was up 6.4% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.92 earnings per share. PepsiCo has set its FY 2026 guidance at 8.550-8.710 EPS. On average, research analysts anticipate that PepsiCo, Inc. will post 8.58 EPS for the current year.
PepsiCo Dividend Announcement The firm also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Friday, September 4th will be given 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 4.4%. PepsiCo’s dividend payout ratio is presently 77.59%.
Wall Street Analyst Weigh In Several equities analysts recently commented on the stock. BNP Paribas Exane reduced their target price on shares of PepsiCo from $195.00 to $183.00 and set an “outperform” rating on the stock in a report on Wednesday, July 8th. Citigroup downgraded shares of PepsiCo from a “buy” rating to a “neutral” rating and lowered their price target for the stock from $170.00 to $145.00 in a research note on Friday, July 10th. The Goldman Sachs Group raised their price objective on PepsiCo from $180.00 to $183.00 and gave the company a “buy” rating in a research note on Friday, April 17th. Morgan Stanley decreased their price objective on PepsiCo from $180.00 to $160.00 and set an “equal weight” rating on the stock in a report on Friday, July 10th. Finally, UBS Group set a $159.00 target price on PepsiCo in a research note on Thursday, July 9th. Seven investment analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus price target of $157.90.
View Our Latest Stock Report on PepsiCo
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.
Read More Five stocks we like better than PepsiCo Premium Retail’s Stress Test Is Separating Winners From Losers D-Wave Quantum or a Quantum ETF: Which Is the Better Bet? GE Vernova Just Sent a Mixed AI Signal to Investors Alphabet Crushed Earnings, But One Number Spooked the Market 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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PepsiCo is rated 'sell' as the turnaround remains unproven, with core North American segments still struggling and gross margins under pressure. Recent sales growth was driven solely by international markets and currency effects, while North America saw declining volumes and ineffective pricing strategies. PEP's leverage is concerning, with $42B net debt and a high FCF multiple of 25–26x, leaving little room for deleveraging or capital flexibility.
Allspring Global Investments Holdings LLC cut its holdings in shares of PepsiCo, Inc. (NASDAQ:PEP – Free Report) by 25.5% during the 1st quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 120,576 shares of the company’s stock after selling 41,362 shares during the quarter. Allspring Global Investments Holdings LLC’s holdings in PepsiCo were worth $18,647,000 as of its most recent filing with the Securities & Exchange Commission.
A number of other institutional investors and hedge funds have also recently added to or reduced their stakes in PEP. Evergreen Advisors LLC purchased a new stake in shares of PepsiCo during the 1st quarter valued at approximately $25,000. Gunpowder Capital Management LLC dba Oliver Wealth Management bought a new position in PepsiCo in the 4th quarter worth approximately $26,000. Swiss RE Ltd. purchased a new position in PepsiCo in the 4th quarter valued at approximately $28,000. MH & Associates Securities Management Corp ADV bought a new stake in PepsiCo during the 4th quarter valued at $29,000. Finally, Imprint Wealth LLC purchased a new stake in shares of PepsiCo during the third quarter worth $31,000. Institutional investors own 73.07% of the company’s stock.
Analyst Upgrades and Downgrades PEP has been the subject of a number of analyst reports. Piper Sandler set a $176.00 price target on PepsiCo in a report on Thursday, July 9th. Rothschild & Co Redburn increased their price objective on PepsiCo from $130.00 to $132.00 in a report on Monday, May 11th. JPMorgan Chase & Co. cut their target price on PepsiCo from $178.00 to $170.00 and set an “overweight” rating for the company in a research note on Wednesday, July 1st. UBS Group set a $159.00 price target on PepsiCo in a research report on Thursday, July 9th. Finally, HSBC increased their price target on shares of PepsiCo from $175.00 to $176.00 and gave the stock a “hold” rating in a report on Friday, April 17th. Seven analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Hold” and an average price target of $157.90.
View Our Latest Analysis on PepsiCo
PepsiCo Price Performance NASDAQ:PEP opened at $135.00 on Wednesday. PepsiCo, Inc. has a 52-week low of $133.95 and a 52-week high of $171.48. The stock has a fifty day moving average of $142.91 and a 200 day moving average of $151.14. The company has a debt-to-equity ratio of 1.91, a quick ratio of 0.74 and a current ratio of 0.93. The firm has a market capitalization of $184.26 billion, a price-to-earnings ratio of 17.69, a P/E/G ratio of 2.97 and a beta of 0.36.
PepsiCo (NASDAQ:PEP – Get Free Report) last announced its earnings results on Thursday, July 9th. The company reported $2.20 earnings per share for the quarter, topping analysts’ consensus estimates 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 company’s quarterly 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, research analysts expect that PepsiCo, Inc. will post 8.58 EPS for the current fiscal year.
PepsiCo Dividend Announcement The business also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Investors of record on Friday, September 4th will be paid a $1.48 dividend. This represents a $5.92 dividend on an annualized basis and a yield of 4.4%. The ex-dividend date of this dividend is Friday, September 4th. PepsiCo’s dividend payout ratio (DPR) is currently 77.59%.
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.
Further Reading Five stocks we like better than PepsiCo Confidence Is Back, But Earnings Show the Consumer Is Being Picky AeroVironment’s Stock Is Down, But Drone Demand Is Taking Off 3M’s Redemption Arc: Can Q2 Earnings Change the Narrative? 3 Photonics Companies Making Quantum Tech Possible 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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The Science of Her Sweat: Gatorade Sports Science Institute's (GSSI) new research shows women need more tailored hydration and nutrition guidance
Key Takeaways:
Only about 6% of sports science research focuses exclusively on women1, leaving a critical gap in hydration and nutrition guidance for female athletes. "Body of Science's" first study2 measures hydration and fueling patterns in more than 500 women across basketball, soccer, and ice hockey, among other activities. Current research expands into life stages, including premenopause, perimenopause, and menopause. Study findings include: Nearly half (43%) of participants showed up to workouts already dehydrated. Over half (57%) didn't consume adequate carbohydrates during exercise, with exactly half consuming zero. Participants replaced only 20% of their sodium electrolyte losses during practice, versus the recommended 50% (GSSI). While women, on average, have lower sweat rates than men, the research found wide variation among women, reinforcing the need for personalized hydration guidance. "Body of Science" insights are already being used in real life situations to improve personalized hydration guidance for female athletes, while ongoing research and the GSSI Labs app will help shape future solutions for all women. Women across the U.S. can participate in ongoing research via the GSSI Labs app and earn points-based gift card rewards on Gatorade.com. , /PRNewswire/ -- This weekend, the Gatorade Sports Science Institute (GSSI), Gatorade's research arm with four decades of experience in hydration, nutrition, and human performance, is presenting the findings from its first "Body of Science" study2. The first Gatorade "Body of Science" study found that nearly half (43%) of women arrive at workouts already dehydrated. This is one of several disparities in how women hydrate and fuel their bodies. "Body of Science" is part of Gatorade's multi-year, global commitment to help close the gap in women's hydration science research. The findings will be presented at the American Society for Nutrition Annual Meeting on July 26.
Hundreds of women across sports and activities, including basketball, soccer and ice hockey, among others, participated in the study, which examined how female bodies sweat and how hydrated women are before exercise. It also assessed how well women meet fueling recommendations – topics that have historically been understudied. To help close that gap, GSSI established new, more precise categories for female sweat rates, providing a benchmark for future research. Current research underway expands into life stages, including premenopause, perimenopause, and menopause.
Establishing the Scientific Foundation of "Body of Science"
For decades, women have fueled their bodies based on science research conducted on men. The first "Body of Science" study reveals where that gap shows up in practice. Key findings being presented to the scientific audience include:
Nearly half (43%) of participants arrived at workouts already dehydrated, indicating a hydration deficit even before exercise. Despite drinking adequate fluid, participants replaced only ~20% of sodium electrolyte losses on average during activity. GSSI recommends replacing close to 50% of the sodium lost. Basketball athletes experienced the highest sodium losses of any sport measured. Inadequate sodium replacement can lead to muscle cramping, fatigue, and impaired performance. 57% of participants under-fueled with carbohydrates during workouts, and half consumed none at all. GSSI recommends 30-60 grams of carbohydrates per hour to support performance and energy during active occasions. While women, on average, have lower sweat rates than men, the research found significant differences from one woman to another, reinforcing that hydration guidance should be tailored to the individual rather than based on broad assumptions. Insights from the "Body of Science" research are already being applied in real life situations to improve how Gatorade evaluates and personalizes hydration guidance for female athletes. Ongoing studies and the GSSI Labs app will continue uncovering unmet needs to help shape future hydration solutions for women.
GSSI is a cornerstone of Gatorade and for more than four decades, the institute has conducted hydration and nutrition research on thousands of athletes. The team of scientists at GSSI have authored hundreds of peer-reviewed studies and powered Gatorade product innovation across the portfolio, and the work continues with "Body of Science."
"The data from our first 'Body of Science' study is clear – these aren't small gaps between what women's bodies need and how they're fueling. They're the difference between feeling your best and unknowingly falling short," said Dr. Kimberly Stein, PhD, Senior Principal Scientist at the Gatorade Sports Science Institute. "Being armed with this data will help us conduct deeper, more targeted research in future 'Body of Science' work."
Expanding "Body of Science" Across Life Stages
GSSI's research is expanding to study women across life stages, including premenopause, perimenopause and menopause. More than 500 women have already joined this early research.
Women of all activity levels can join ongoing research through the GSSI Labs app. The app's "Female Athlete Hydration Survey" invites women across the U.S. to help close longstanding research gaps. Participation earns points-based gift card rewards redeemable on Gatorade.com.
Gatorade WNBA All-Star Activation
Throughout AT&T WNBA All-Star in Chicago, Gatorade is building on its 30-year history as a founding partner of the WNBA. During WNBA All-Star Week programming, Gatorade will co-host the WNBA Line 'Em Up community activation at Robichaux Park on Chicago's South Side. Additionally, the brand will host a panel at the Chicago Sky Media & Innovation Summit, which will also bring together athletes, scientists and executives, in partnership with Gatorade. The panel will explore how women's sports are driving a new era of athlete care, from hydration strategies to injury prevention and recovery to menstrual health, pregnancy and long-term wellness. Additional grassroots efforts, including Hoopbus community programming, will take place throughout Chicago.
"Understanding what female bodies need for hydration and nutrition to perform their best on the court shouldn't be a luxury, and Gatorade is putting in the work to make sure it's not," said 8× WNBA All-Star, A'ja Wilson.
To date, Gatorade's "Body of Science" research has been conducted without any WNBA player participation. For more information, visit www.gatorade.com/body-of-science.
1 Source: Cowley, E. S., Olenick, A. A., McNulty, K. L., & Ross, E. Z. (2021). "Invisible Sportswomen": The Sex Data Gap in Sport and Exercise Science Research. Women in Sport and Physical Activity Journal, 29(2), 146-151.
2 Research is being presented at the American Society for Nutrition Annual Meeting on July 26.
The information presented is for general educational and informational purposes only and should not be construed as medical, health, nutrition, or dietary advice. The content is not intended to diagnose, treat, cure, or prevent any disease or medical condition and is not a substitute for professional medical advice, diagnosis, or treatment. Individual hydration, nutrition, and health needs vary. Individuals should consult with a qualified healthcare professional or registered dietitian before making changes to their diet, supplementation, hydration practices, or exercise routines.
About The Gatorade Portfolio
The Gatorade Portfolio, a division of PepsiCo (NASDAQ: PEP), is a connected performance and wellness ecosystem built to fuel all athletes and exercisers. Bringing together Gatorade, Propel, Evolve and Muscle Milk, the Gatorade Portfolio is the most complete offering in the category today, with a broad range of personalized solutions at every stage of a person's journey. This integrated system of brands is built on Gatorade's 61-year history of studying athletes and is fueling the future of performance and wellness by delivering solutions across hydration, protein, energy and all-day nutrition to fuel consumers, no matter how or why they sweat. For more information and a full list of product offerings, please visit www.gatorade.com.
About PepsiCo
PepsiCo products are enjoyed by consumers more than one billion times a day in more than 200 countries and territories around the world. PepsiCo generated nearly $94 billion in net revenue in 2025, driven by a complementary beverage and convenient foods portfolio that includes Lay's, Doritos, Cheetos, Gatorade, Pepsi-Cola, Mountain Dew, Quaker, and SodaStream. PepsiCo's product portfolio includes a wide range of enjoyable foods and drinks, including many iconic brands that generate more than $1 billion each in estimated annual retail sales.
Guiding PepsiCo is our vision to Be the Global Leader in Beverages and Convenient Foods by Winning with pep+ (PepsiCo Positive). pep+ is our strategic end-to-end transformation that places sustainability at the center of our business strategy, seeking to drive growth and build a stronger, more resilient future for PepsiCo and the communities where we operate. For more information, visit www.pepsico.com, and follow on X (Twitter), Instagram, Facebook, and LinkedIn @PepsiCo.
Andra AP fonden raised its stake in shares of PepsiCo, Inc. (NASDAQ:PEP – Free Report) by 239.5% during the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 278,094 shares of the company’s stock after purchasing an additional 196,177 shares during the quarter. PepsiCo comprises 0.5% of Andra AP fonden’s holdings, making the stock its 27th biggest position. Andra AP fonden’s holdings in PepsiCo were worth $43,185,000 as of its most recent filing with the Securities and Exchange Commission.
Other institutional investors and hedge funds have also made changes to their positions in the company. Brighton Jones LLC raised its stake in PepsiCo by 12.4% in the 4th quarter. Brighton Jones LLC now owns 59,392 shares of the company’s stock worth $9,031,000 after acquiring an additional 6,574 shares during the last quarter. Caxton Associates LLP purchased a new stake in PepsiCo during the 1st quarter valued at about $251,000. Sivia Capital Partners LLC increased its holdings in shares of PepsiCo by 138.5% in the second quarter. Sivia Capital Partners LLC now owns 6,527 shares of the company’s stock valued at $862,000 after purchasing an additional 3,790 shares during the period. Schnieders Capital Management LLC. raised its stake in shares of PepsiCo by 10.1% in the second quarter. Schnieders Capital Management LLC. now owns 38,164 shares of the company’s stock worth $5,039,000 after purchasing an additional 3,502 shares during the last quarter. Finally, Sei Investments Co. lifted its holdings in shares of PepsiCo by 45.5% during the second quarter. Sei Investments Co. now owns 536,133 shares of the company’s stock worth $70,789,000 after purchasing an additional 167,707 shares during the period. 73.07% of the stock is currently owned by institutional investors and hedge funds.
PepsiCo Trading Down 1.2% Shares of NASDAQ:PEP opened at $135.46 on Tuesday. The company has a current ratio of 0.93, a quick ratio of 0.74 and a debt-to-equity ratio of 1.91. PepsiCo, Inc. has a 12-month low of $133.95 and a 12-month high of $171.48. The business has a 50 day moving average of $143.25 and a two-hundred day moving average of $151.20. The company has a market capitalization of $184.89 billion, a PE ratio of 17.75, a PEG ratio of 3.01 and a beta of 0.36.
PepsiCo (NASDAQ:PEP – Get Free Report) last posted 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 during the quarter, compared to analyst estimates of $23.95 billion. During the same period in the previous year, the firm earned $0.92 EPS. The business’s quarterly revenue was up 6.4% on a year-over-year basis. PepsiCo has set its FY 2026 guidance at 8.550-8.710 EPS. As a group, analysts forecast that PepsiCo, Inc. will post 8.58 EPS for the current year.
PepsiCo Announces Dividend The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Friday, September 4th will be issued 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 4.4%. PepsiCo’s payout ratio is presently 77.59%.
Analyst Ratings Changes PEP has been the topic of several research reports. TD Cowen cut their price target on shares of PepsiCo from $150.00 to $145.00 and set a “hold” rating on the stock in a report on Friday, July 10th. Morgan Stanley decreased 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 note on Friday, July 10th. Bank of America cut their price objective 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. Jefferies Financial Group reduced their target price on shares of PepsiCo from $162.00 to $152.00 and set a “hold” rating for the company in a report on Friday, July 10th. Finally, Piper Sandler set a $176.00 price target 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 issued a Sell rating to the company. According to MarketBeat, PepsiCo presently has an average rating of “Hold” and a consensus target price of $157.70.
Get Our Latest Analysis on PepsiCo
PepsiCo Company 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.
Further Reading Five stocks we like better than PepsiCo The Ugliest Stocks in the Market Just Got a Very Expensive Vote of Confidence Is Domino’s Stock Serving Up a Buying Opportunity? A $1T Black Hole: SpaceX Eyes Pentagon AI to Break Free Why Gold Miners Could Be the Market’s Biggest Comeback Story 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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Coca-Cola may be the stronger business today, but PepsiCo offers a more attractive opportunity. Pepsi's higher yield and activist-driven changes give it the edge as a new buy today.
On July 20, 2026, we delve into the DCF analysis for PepsiCo Inc (PEP), a company that has seen a slight decline in its stock price over the past year. The curr
Dimensional Fund Advisors LP raised its holdings in PepsiCo, Inc. (NASDAQ:PEP – Free Report) by 1.4% during the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 8,041,660 shares of the company’s stock after buying an additional 110,346 shares during the period. Dimensional Fund Advisors LP owned about 0.59% of PepsiCo worth $1,248,853,000 as of its most recent SEC filing.
Other institutional investors and hedge funds have also made changes to their positions in the company. Evergreen Advisors LLC acquired a new position in PepsiCo in the first quarter valued at approximately $25,000. Gunpowder Capital Management LLC dba Oliver Wealth Management acquired a new stake in PepsiCo during the fourth quarter worth approximately $26,000. Swiss RE Ltd. purchased a new stake in shares of PepsiCo during the 4th quarter worth approximately $28,000. MH & Associates Securities Management Corp ADV acquired a new position in shares of PepsiCo in the 4th quarter valued at $29,000. Finally, Imprint Wealth LLC purchased a new position in shares of PepsiCo in the 3rd quarter valued at $31,000. 73.07% of the stock is owned by institutional investors and hedge funds.
Key Stories Impacting PepsiCo Here are the key news stories impacting PepsiCo this week:
Positive Sentiment: PepsiCo declared a quarterly dividend of $1.48 per share, a 4% increase from a year ago, which reinforces its appeal as a steady income stock. PepsiCo Declares Quarterly Dividend Positive Sentiment: PepsiCo India reported robust first-half growth and said it will set up a new food manufacturing facility in Tamil Nadu, signaling continued international expansion. PepsiCo India sees robust growth in H1 Positive Sentiment: PepsiCo’s CEO said the company remains cautiously optimistic about the second half, citing resilient demand in the face of weather-related uncertainty. PepsiCo cautiously optimistic on H2 amid robust demand Neutral Sentiment: PepsiCo is drawing more investor attention, but the Zacks items are mostly watchlist-style coverage rather than new fundamental news. PepsiCo, Inc. (PEP) is Attracting Investor Attention Neutral Sentiment: PepsiCo is pushing sustainable sourcing further, saying 70% of ingredients now come from sustainable sources and targeting 90% by 2030, which supports long-term ESG goals but is unlikely to move the stock near term. PepsiCo (PEP) Pushes Sustainable Sourcing Negative Sentiment: Erste Group Bank trimmed PepsiCo’s FY2026 and FY2027 earnings estimates, adding to concern that profit growth may be slower than previously expected. PepsiCo estimate cuts Negative Sentiment: Broader commentary that U.S. grocery unit sales are falling suggests a tougher demand backdrop for PepsiCo and other packaged-food companies. U.S. grocery unit sales falling Negative Sentiment: Coverage noting that PepsiCo stock is near a one-year low highlights ongoing investor concern about the company’s growth and margin outlook. Why PepsiCo’s stock is at a 1-year low PepsiCo Price Performance Shares of NASDAQ:PEP opened at $137.12 on Monday. PepsiCo, Inc. has a one year low of $134.65 and a one year high of $171.48. The stock has a market capitalization of $187.15 billion, a price-to-earnings ratio of 17.97, a PEG ratio of 3.01 and a beta of 0.36. The company has a 50-day simple moving average of $143.53 and a 200-day simple moving average of $151.26. 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 (NASDAQ:PEP – Get Free Report) last issued its quarterly earnings results on Thursday, July 9th. The company reported $2.20 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.19 by $0.01. The firm had revenue of $24.18 billion for 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%.The firm’s revenue for the quarter was up 6.4% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.92 EPS. PepsiCo has set its FY 2026 guidance at 8.550-8.710 EPS. On average, analysts predict that PepsiCo, Inc. will post 8.58 EPS for the current year.
PepsiCo Dividend Announcement The business also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Friday, September 4th will be issued 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 dividend yield of 4.3%. PepsiCo’s payout ratio is presently 77.59%.
Analyst Ratings Changes A number of equities research analysts recently weighed in on the stock. JPMorgan Chase & Co. reduced their price target on shares of PepsiCo from $178.00 to $170.00 and set an “overweight” rating for the company in a research report on Wednesday, July 1st. The Goldman Sachs Group lifted their target price on PepsiCo from $180.00 to $183.00 and gave the stock a “buy” rating in a research report on Friday, April 17th. Evercore set a $150.00 target price on PepsiCo in a research report on Thursday, July 9th. Jefferies Financial Group dropped their price target on PepsiCo from $162.00 to $152.00 and set a “hold” rating on the stock in a research note on Friday, July 10th. Finally, Morgan Stanley reduced their price objective on PepsiCo from $180.00 to $160.00 and set an “equal weight” rating for the company in a research note on Friday, July 10th. Seven research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, PepsiCo presently has an average rating of “Hold” and an average target price of $157.70.
View Our Latest Report on PEP
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.
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Assetmark Inc. lessened its holdings in PepsiCo, Inc. (NASDAQ:PEP – Free Report) by 5.6% during the first quarter, according to its most recent disclosure with the SEC. The institutional investor owned 139,752 shares of the company’s stock after selling 8,319 shares during the period. Assetmark Inc.’s holdings in PepsiCo were worth $21,702,000 as of its most recent SEC filing.
A number of other large investors have also recently modified their holdings of the business. Evergreen Advisors LLC purchased a new position in PepsiCo in the first quarter worth $25,000. Gunpowder Capital Management LLC dba Oliver Wealth Management purchased a new position in shares of PepsiCo in the 4th quarter worth about $26,000. Swiss RE Ltd. bought a new position in shares of PepsiCo during the 4th quarter valued at about $28,000. MH & Associates Securities Management Corp ADV purchased a new position in shares of PepsiCo during the 4th quarter valued at about $29,000. Finally, Imprint Wealth LLC bought a new stake in PepsiCo in the 3rd quarter worth approximately $31,000. Institutional investors own 73.07% of the company’s stock.
PepsiCo Stock Down 1.7% Shares of NASDAQ:PEP opened at $137.12 on Friday. The stock’s 50-day moving average is $143.53 and its 200 day moving average is $151.21. The company has a market cap of $187.15 billion, a PE ratio of 17.97, a P/E/G ratio of 3.01 and a beta of 0.36. 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, Inc. has a 1 year low of $134.65 and a 1 year high of $171.48.
PepsiCo (NASDAQ:PEP – Get Free Report) last issued its quarterly earnings data 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 company’s quarterly 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. Sell-side analysts anticipate that PepsiCo, Inc. will post 8.58 EPS for the current year.
PepsiCo Increases Dividend The company also recently declared a quarterly dividend, which was paid on Tuesday, June 30th. Investors of record on Friday, June 5th were given a dividend of $1.48 per share. This is a boost from PepsiCo’s previous quarterly dividend of $1.42. This represents a $5.92 annualized dividend and a dividend yield of 4.3%. The ex-dividend date was Friday, June 5th. PepsiCo’s dividend payout ratio is presently 77.59%.
Analyst Upgrades and Downgrades PEP has been the topic of several research reports. BNP Paribas Exane decreased their price target 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. Piper Sandler set a $176.00 target price on shares of PepsiCo in a report on Thursday, July 9th. Wells Fargo & Company decreased their target price on shares of PepsiCo from $150.00 to $140.00 and set an “equal weight” rating on the stock in a research report on Friday, July 10th. TD Cowen cut their price target on shares of PepsiCo from $150.00 to $145.00 and set a “hold” rating for the company in a research report on Friday, July 10th. Finally, Sanford C. Bernstein set a $134.00 price objective on PepsiCo in a research note on Friday, July 10th. Seven investment analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average price target of $157.70.
Get Our Latest Stock Analysis on PepsiCo
Key Headlines Impacting PepsiCo Here are the key news stories impacting PepsiCo this week:
Positive Sentiment: PepsiCo declared a quarterly dividend of $1.48 per share, a 4% increase from a year ago, which reinforces its appeal as a steady income stock. PepsiCo Declares Quarterly Dividend Positive Sentiment: PepsiCo India reported robust first-half growth and said it will set up a new food manufacturing facility in Tamil Nadu, signaling continued international expansion. PepsiCo India sees robust growth in H1 Positive Sentiment: PepsiCo’s CEO said the company remains cautiously optimistic about the second half, citing resilient demand in the face of weather-related uncertainty. PepsiCo cautiously optimistic on H2 amid robust demand Neutral Sentiment: PepsiCo is drawing more investor attention, but the Zacks items are mostly watchlist-style coverage rather than new fundamental news. PepsiCo, Inc. (PEP) is Attracting Investor Attention Neutral Sentiment: PepsiCo is pushing sustainable sourcing further, saying 70% of ingredients now come from sustainable sources and targeting 90% by 2030, which supports long-term ESG goals but is unlikely to move the stock near term. PepsiCo (PEP) Pushes Sustainable Sourcing Negative Sentiment: Erste Group Bank trimmed PepsiCo’s FY2026 and FY2027 earnings estimates, adding to concern that profit growth may be slower than previously expected. PepsiCo estimate cuts Negative Sentiment: Broader commentary that U.S. grocery unit sales are falling suggests a tougher demand backdrop for PepsiCo and other packaged-food companies. U.S. grocery unit sales falling Negative Sentiment: Coverage noting that PepsiCo stock is near a one-year low highlights ongoing investor concern about the company’s growth and margin outlook. Why PepsiCo’s stock is at a 1-year low 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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, /PRNewswire/ -- The Board of Directors of PepsiCo, Inc. (NASDAQ: PEP) today declared a quarterly dividend of $1.48 per share of PepsiCo common stock, a 4 percent increase versus the comparable year-earlier period. Today's action is consistent with PepsiCo's previously announced increase in its annualized dividend to $5.92 per share from $5.69 per share, which began with the June 2026 payment. This dividend is payable on September 30, 2026 to shareholders of record at the close of business on September 4, 2026. PepsiCo has paid consecutive quarterly cash dividends since 1965, and 2026 marked the company's 54th consecutive annual dividend increase.
About PepsiCo
PepsiCo products are enjoyed by consumers more than one billion times a day in more than 200 countries and territories around the world. PepsiCo generated nearly $94 billion in net revenue in 2025, driven by a complementary beverage and convenient foods portfolio that includes Lay's, Doritos, Cheetos, Gatorade, Pepsi-Cola, Mountain Dew, Quaker, and SodaStream. PepsiCo's product portfolio includes a wide range of enjoyable foods and beverages, including many iconic brands that generate more than $1 billion each in estimated annual retail sales.
Guiding PepsiCo is our vision to Be the Global Leader in Beverages and Convenient Foods by Winning with pep+ (PepsiCo Positive). pep+ is our strategic end-to-end transformation that puts sustainability and human capital at the center of how we will create value and growth by operating within planetary boundaries and inspiring positive change for planet and people. For more information, visit www.pepsico.com, and follow on X (Twitter), Instagram, Facebook, and LinkedIn @PepsiCo.
Cautionary Statement
Statements in this release that are "forward-looking statements" are based on currently available information, operating plans and projections about future events and trends. Forward-looking statements inherently involve risks and uncertainties. For information on certain factors that could cause actual events or results to differ materially from our expectations, please see PepsiCo's filings with the Securities and Exchange Commission, including its most recent annual report on Form 10-K and subsequent reports on Forms 10-Q and 8-K. Investors are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date they are made. PepsiCo undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.
PepsiCo (PEP - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Over the past month, shares of this food and beverage company have returned -1.8%, compared to the Zacks S&P 500 composite's +0.5% change. During this period, the Zacks Beverages - Soft drinks industry, which PepsiCo falls in, has gained 0.9%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
PepsiCo is expected to post earnings of $2.32 per share for the current quarter, representing a year-over-year change of +1.3%. Over the last 30 days, the Zacks Consensus Estimate has changed -4.4%.
For the current fiscal year, the consensus earnings estimate of $8.58 points to a change of +5.4% from the prior year. Over the last 30 days, this estimate has changed -0.6%.
For the next fiscal year, the consensus earnings estimate of $9.01 indicates a change of +5.1% from what PepsiCo is expected to report a year ago. Over the past month, the estimate has changed -1.3%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, PepsiCo is rated Zacks Rank #4 (Sell).
Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of PepsiCo, the consensus sales estimate of $24.94 billion for the current quarter points to a year-over-year change of +4.2%. The $98.84 billion and $101.91 billion estimates for the current and next fiscal years indicate changes of +5.2% and +3.1%, respectively.
Last Reported Results and Surprise HistoryPepsiCo reported revenues of $24.18 billion in the last reported quarter, representing a year-over-year change of +6.4%. EPS of $2.2 for the same period compares with $2.12 a year ago.
Compared to the Zacks Consensus Estimate of $23.87 billion, the reported revenues represent a surprise of +1.32%. The EPS surprise was +0.46%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
PepsiCo is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about PepsiCo. However, its Zacks Rank #4 does suggest that it may underperform the broader market in the near term.
PepsiCo is rated a strong buy after recent weakness, offering a compelling blend of yield, growth, and undervaluation. PEP's forward CAGR is projected at 13.7–18.2%, driven by dividend growth, EPS expansion, and potential multiple re-rating toward historical averages. Guidance for organic revenue growth (2–4%) is conservative; I expect acquisitions and cost tailwinds to lift overall growth to 6%.
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
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Every day, people around the world choose between Coke and Pepsi to quench their thirst for soda. Similarly, income investors may find themselves deciding between investing their hard-earned savings in Coca-Cola (KO +1.28%) or PepsiCo (PEP +1.58%).
Both stocks have historically fetched premium valuations thanks to their industry leadership, diverse product portfolios, and ultrareliable dividends. But Coca-Cola is crushing Pepsi with a 19.4% year-to-date return, compared with a 4.2% decline in Pepsi stock. And over the past five years, Coke is up 53.2%, while Pepsi is down 8.1%.
Coke's 10-year median price-to-earnings (P/E) ratio is 27.7 -- only slightly higher than Pepsi's 10-year median P/E of 26. But today, Coke's forward P/E is 25.3 while Pepsi's has slumped to just 16 -- the widest disparity in years.
Here's why investors are bubbling about Coke stock, why Pepsi's fizz has fallen flat, and which blue chip dividend stock is the better buy now.
Image source: Getty Images.
Pepsi's North American struggles continue Pepsi stock was tumbling on July 9 despite decent quarterly results. Investor concerns about declining consumer demand for salty snacks and sugary drinks, as well as inflationary pressures from higher oil prices, may be overshadowing the positives from the quarter.
Pepsi's ownership of Frito-Lay and Quaker Oats, along with its diversified portfolio of beverage brands, gives it a global presence in snacks and nonalcoholic beverages. Pepsi's international segment continues to perform well, with all segments (across product categories and geography) delivering net revenue growth in Pepsi's latest quarter. But Pepsi's North America convenience foods revenue declined, partially driven by lower net pricing, while beverages grew revenue largely thanks to acquisitions made in 2025. When excluding the impact of those acquisitions, Pepsi Beverages North America grew organic revenue by only 1% and saw a 4% decline in beverage volume.
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Coke's edge over Pepsi Pepsi has a lot of moving parts, whereas Coke simply focuses on what it does best: soda, juice, water, sparkling water, tea, coffee, and energy drinks. The beverage category has generally held up better than packaged foods during the slowdown. And Coke's network of bottling partners gives it incredibly high margins.
Coke sells syrups and concentrates to its bottling partners, which mix, bottle, package, and distribute Coca-Cola products. Since Coca-Cola doesn't own or control most of its bottling partners, they effectively function as franchisees in the broader Coca-Cola system, whereas Pepsi's supply chain doesn't have the same operating leverage as Coke. And although it is more diversified in terms of the number of products and categories, Pepsi is heavily affected by shifting consumer preferences. So while Pepsi is well positioned to handle a change in consumer taste for a specific type of snack, the competitive advantage of having so many different products means little if the prevailing trend is an overall decline in snack demand.
KO data by YCharts
Coke has been crushing Pepsi because it's growing its revenue and earnings more rapidly, its margins are far higher, and investors are willing to pay a higher price for Coke stock relative to its earnings than for Pepsi.
Coke and Pepsi can afford their growing dividends Coke is guiding for only 4% to 5% organic revenue growth for the full year 2026. But its margins remain high, and earnings continue to grow faster than revenue. It also plans to generate $12.2 billion in 2026 free cash flow (FCF), which is plenty to cover its dividend.
By comparison, Pepsi is forecasting 2% to 4% fiscal 2026 revenue growth. It plans to convert 80% of earnings into FCF. Analyst consensus estimates have Pepsi earning $8.64 per share in fiscal 2026, which would be $6.91 in FCF based on the 80% conversion -- plenty to cover Pepsi's run rate annualized dividend of $5.92.
So while Coke is certainly performing better, it's not running laps around Pepsi to the point where it should trade at a significant premium. It's also worth noting that both companies have strong track records of increasing dividends. Coke has boosted its payout for 64 consecutive years, compared with 54 years for Pepsi. That gives both companies a seat at the table of Dividend Kings, which are companies with at least 50 consecutive years of dividend increases.
As mentioned, Coke and Pepsi have historically traded at similar valuations. And they have also generated similar earnings and dividend growth rates. But Pepsi's drastic underperformance relative to Coke has pushed Pepsi's dividend yield significantly above Coke's. So not only is Pepsi trading at its deepest discount relative to Coke in years, but the difference in their dividend yields is also at a 10-year high.
PEP Dividend Yield data by YCharts
Pepsi's road to recovery Historically, when Coke or Pepsi has gotten too expensive, their stock prices have cooled off, giving earnings time to catch up. Or when they're undervalued, the stock price may grow faster than earnings, which is exactly what has happened to Coke in recent years -- bringing its valuation close to its historical average.
Pepsi could enjoy the same recovery if it can regain investor confidence in its turnaround. Pepsi has made efforts to diversify its product portfolio to address wellness trends by introducing healthier versions of its top brands, as well as through major acquisitions focused on healthier products and mini-meals. But even with those efforts, there's no denying that the vast majority of Pepsi's success depends on salty snacks and sugary drinks.
Last September, activist investor Elliott Investment Management took a $4 billion stake in Pepsi, representing roughly 2% ownership of the company. Elliott argued that margin erosion and poor execution across North America have led to Pepsi falling short of its potential. And that reorganizing the business, product portfolio, supply chain, bottler network, and management team could lead to accelerated revenue, earnings growth, and margins. Pepsi received the news well. In December, with Elliott's help, Pepsi announced new strategic objectives to improve the overall business.
Pepsi has progressed on some parts of that plan -- including adjustments to its food and beverage supply chains to lower costs in North American warehouses and fleet delivery. But ultimately, Pepsi will remain in prove it mode until its margins and earnings growth can return to the levels where investors are willing to give it a premium valuation.
Two excellent dividend stocks to buy now Coke and Pepsi are both great buys now, but for different reasons.
Coke is executing better than Pepsi and is better positioned to endure a prolonged shift in consumer preferences toward wellness options. But Coke is far from cheap, whereas Pepsi's valuation reflects investor uncertainty.
Investors who believe in Pepsi's turnaround are getting an incredible opportunity to buy the value stock while it's in the bargain bin. However, it's understandable if some investors want to wait and see whether Pepsi shows measurable progress toward its turnaround before backing up the truck and loading pallets of Pepsi stock into their portfolios.
The first half of 2026 belonged to artificial intelligence. The second half, so far, has belonged to almost everything else.
In the opening stretch of July, technology has been the market's worst-performing sector. Meanwhile, cash has flowed into the corners investors ignored all year: energy, financials, healthcare, and consumer staples. A soft June jobs report, which showed the economy adding just 57,000 jobs, cooled bets on a Federal Reserve rate hike and gave the rotation a further push.
For income investors, I think a rotation into defensive, dividend-paying stocks is worth a closer look. Three names in particular stand out.
Each is a Dividend King with at least half a century of consecutive annual increases, and each sits at a very different point in this trade. Here's a look at Coca-Cola, Johnson & Johnson, and PepsiCo.
Image source: Getty Images.
1. Coca-Cola: quality, already rewarded Coca-Cola (KO +1.05%) is what the rotation looks like when it works. The beverage giant trades near an all-time high, and the business has earned it. First-quarter organic revenue rose 10% year over year, a strong result for a company this size and this old.
The dividend, of course, is about as secure as dividends get. Coca-Cola has raised its payout for 64 straight years, and the current $2.12 annual dividend uses up only about two-thirds of earnings.
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The one drawback is the price -- at roughly 25 times forward earnings, with a 2.5% yield, Coca-Cola is arguably priced like the defensive stalwart it is. You're buying quality here, but you're not buying it cheap.
2. Johnson & Johnson: the healthcare anchor Johnson & Johnson (JNJ 0.82%) offers a similar kind of durability from a different sector. The healthcare giant just raised its dividend for the 64th consecutive year, matching Coca-Cola for the longest streak of this trio.
Indeed, its first-quarter results gave the increase plenty of cover. Revenue rose about 10% year over year, adjusted earnings per share came to $2.70, and management lifted its full-year outlook to about $11.55 in adjusted earnings per share, helped by strong demand for cancer drug Darzalex and immunology treatment Tremfya.
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At about 22 times forward earnings and a 2.1% yield, Johnson & Johnson sits between its two peers here on valuation, though its yield is the lowest of the three. Its dividend consumes less than half of adjusted earnings, so there's ample room for more increases. Investors will get a fresh read soon, too: the company reports second-quarter results this week, on July 15.
3. PepsiCo: the cheap, out-of-favor one If Coca-Cola is the rotation's winner, PepsiCo (PEP 0.35%) is the name it has passed by so far. The snacks and beverages maker trades near a 52-week low.
Its second-quarter report on Thursday explains part of why. Organic revenue grew just 2.4%, in line with the sluggish low-single-digit pace of recent quarters, and volume in its North American beverage business fell 4%.
But there's another side to this. PepsiCo affirmed its full-year outlook, still expects core constant currency earnings per share to grow 4% to 6% for the year, and just raised its dividend for the 54th year running.
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After the sell-off, the stock now yields about 4.3% -- comfortably the highest of the three -- at roughly 16 times forward earnings, easily the cheapest. For investors who think the rotation into unloved value has further to run, that's arguably the most direct way to play it in this group.
The better way to play the rotation? So which of these three fits the moment best? It depends on what an investor is after.
The highest quality, for those willing to pay up, is Coca-Cola. The steadiest, and the one giving a fresh read on its business next, on July 15, is Johnson & Johnson. And the best value, for anyone willing to sit through some near-term softness, is PepsiCo.
Personally, in a rotation like this, I lean toward the cheapest, most out-of-favor name, which points to PepsiCo. Its U.S. business isn't at its strongest right now, but a 4.3% yield backed by 54 years of increases pays investors well to be patient.
Of course, none of these is a bargain in absolute terms. And a market that turns back toward growth could leave defensive payers behind just as fast as it found them. But if the rotation into value has staying power, these three sit squarely in its path.
PepsiCo (NASDAQ: PEP | PEP Price Prediction) and Procter & Gamble (NYSE: PG) both just handed investors fresh earnings, and the businesses behind the tickers are steering in noticeably different directions.
Pepsi posted Q2 2026 results on July 8 with international momentum leading the way. P&G’s fiscal Q3 earnings report landed in late April, driven by Beauty. Both beat, both reaffirmed guidance, and both are wrestling with tariffs.
Snacks Wobble at Pepsi. Beauty Powers P&G. Pepsi delivered core EPS of $2.20 on $24.18 billion in revenue, up 6.4% year over year. The tell was geography. Latin America Foods jumped 15%, EMEA rose 10%, and Asia Pacific Foods climbed 12%, while PepsiCo Foods North America slipped 2% on lower effective net pricing.
That is a real business problem for Frito-Lay economics at home, even as CEO Ramon Laguarta pointed to “the highest rate [of global organic volume growth] since 2022”.
P&G’s story was different in texture. Net sales of $21.24 billion grew 7.4%, with Beauty up 7% organically on Hair Care, Skin Care, and Olay premiumization. Every one of the five segments grew. Core EPS came in at $1.59, beating the $1.5552 consensus. New CEO Shailesh Jejurikar framed it plainly: “broad-based growth across product categories and regions.”
Business Driver PepsiCo P&G Main Growth Engine International beverages and foods Beauty and premium innovation Soft Spot PFNA (-2%) Fabric & Home Care organic (+3%) Margin Move Core margin -40 bps Core gross margin -100 bps Functional Beverages vs. Premium Skin Care Laguarta wants Pepsi’s portfolio pulled toward “functional benefits such as hydration, protein and fiber, energy and zero sugar beverage varieties“, alongside affordability initiatives to shore up domestic snacks.
Jejurikar is doing something bolder on the cost side. P&G announced a plan to cut up to 7,000 non-manufacturing roles by end of FY2027 while pushing innovation-based pricing in Oral Care and Skin Care.
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Both companies get hit by tariffs. P&G quantified the pain at roughly $400 million after-tax and now expects results toward the lower end of its FY26 EPS range of $6.83 to $7.09. Pepsi, by contrast, reaffirmed core constant currency EPS growth of 4% to 6% and $8.9 billion in total shareholder returns.
The Next Test Is Domestic Snack Pricing and Tariff Absorption I want to see whether Pepsi can stop the pricing bleed in Frito-Lay without gutting margin, and whether poppi, Gatorade, and the zero sugar push can keep offsetting soft PFNA.
For P&G, the tell will be Beauty holding a 7% organic pace while restructuring hits and tariff costs stay sticky. The 70th consecutive dividend increase and Pepsi’s 54th look secure; the unit economics behind them are the open question.
Why I Lean P&G for Quality, Pepsi for the Rebound Trade If I want the cleaner operating story right now, I lean toward P&G. Every segment grew, Beauty is doing real premium work, and Jejurikar’s cost plan gives me a lever if tariffs stay elevated. The stock reflects it: PG is up 3.95% year to date, while PEP sits down 2.08%.
If I want more upside variance, Pepsi is the more interesting file. A forward P/E of 17 and 3.92% dividend yield pay me to wait while PFNA stabilizes. I would not chase either aggressively until I see two more quarters of margin direction. That is the read.
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Celsius remains a high-risk, high-reward bet as it works to integrate multiple energy drink brands while reviving growth in its flagship product. Coca-Cola and PepsiCo are adapting to health trends with prebiotic and better-for-you beverages, reducing the competitive edge of smaller disruptors.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of PEP either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
PepsiCo Inc (PEP) released its 8-K filing on July 9, 2026, reporting significant achievements in its second-quarter results. The company demonstrated strong gro
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
Fifty-four. That is how many consecutive years PepsiCo (NASDAQ:PEP | PEP Price Prediction) will have raised its dividend once the 4% increase in the annualized dividend per share takes effect with the June 2026 payment. The company which now trades at a $200 billion market capitalization reaffirmed the streak in its Q1 FY2026 earnings release filed April 15, 2026, pushing its annualized payout to $5.92 per share.
For a retirement-focused reader who cares about income that keeps showing up, that streak is the story.
What It Means A 54-year run puts PepsiCo in a club of two Dividend Kings with 50-plus years of consecutive dividend increases. The raise is backed by real capital return. Management sized total FY2026 shareholder returns at roughly $8.9 billion, split between $7.9 billion in dividends and $1.0 billion in repurchases, on top of a new $10 billion share repurchase program running through February 28, 2030.
The cash flow behind that promise is doing its job. Pepsi’s Q1 core EPS came in at $1.61 against a $1.54 consensus, revenue landed at $19.44 billion versus $18.92 billion expected, and operating margin expanded 210 basis points to 16.5%. International segments carried the quarter, with EMEA core operating profit up 29% and Asia Pacific Foods up 35%. That is the plumbing that funds five decades of raises.
Market Reaction Pepsi stock closed at $144.22 on July 2, 2026, up 2.17% on the day. On a longer look, the stock is up 2.44% year to date, 3.37% over one week, and 9.84% over one year. That trails the S&P 500’s 9.22% YTD and 20.04% one-year gain, but recent trading has turned. TradingKey reported the stock rose 4.21% on July 1 driven by institutional accumulation, with the market pricing in a valuation floor ahead of Q2.
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Bull Case The defensive rotation is the setup. UBS analyst Sean Burns wrote on July 2 that “defensive dividend stocks like PepsiCo (PEP) and McDonald’s (MCD) are poised for a comeback, offering attractive value compared to high-growth tech stocks,” citing a 4.4% market-implied yield on lower-risk companies versus 1.4% for high-risk stocks. PepsiCo’s current dividend yield of 4.2% sits inside that band, and the stock trades at 16 times forward earnings against a trailing P/E of 22.
Valuation adds a second leg. Shares sit 17.55% below the 52-week high of $171.48 set on February 12, 2026, and the analyst average target of $166.82 implies room above the current print. CEO Ramon Laguarta framed the setup on the call: “We are encouraged with the resilience of the International business while North America continued to make progress in the first quarter.” Reaffirmed FY2026 guidance calls for organic revenue growth of 2-4% and core constant currency EPS growth of 4-6%, with free cash flow conversion of at least 80%.
The macro backdrop favors the thesis. Per capita disposable income has risen from $63,638 in 2024 Q1 to $68,391 in 2026 Q1, and personal consumption expenditures ran at $21,634.9 billion in 2026 Q1. Consumers keep buying snacks and drinks. Additionally, a beta of 0.359 means PepsiCo moves roughly a third as much as the broader market, exactly the profile retirement portfolios lean on when volatility picks up.
Bottom Line Fifty-four consecutive raises is a track record you can plan retirement income around. Pepsi’s Q2 2026 earnings are scheduled for July 9, 2026, with forecasted EPS of $2.19 on revenue of $23.97 billion, and a repeat of Q1’s international strength would validate the pricing the market is starting to put back into the stock. For long-term holders, the anchor is the payout streak, and the payout streak is still intact.
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Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades, downgrades and initiations, please see our analyst ratings page.
Considering buying PEP stock? Here’s what analysts think:
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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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Key Takeaways PepsiCo reaffirmed 2026 guidance after Q2 revenues rose 6.4% and core EPS increased 4%.International growth and margin gains offset weaker North America foods revenues and profit.Tariff refunds may add about one point of EPS growth as PepsiCo keeps investing in U.S. demand. PepsiCo, Inc. (PEP - Free Report) used its second-quarter earnings call to argue that the bigger story is not the modest earnings beat, but the split between a resilient international engine and a North America business still being rebuilt around affordability, portfolio shifts and away-from-home expansion.
Management reaffirmed the company’s 2026 guidance, but the discussion made it clear that investors remain focused on whether PepsiCo can turn improving volume trends in U.S. foods and beverages into stronger returns in the back half.
PEP Keeps Full-Year Targets IntactPepsiCo reported second-quarter core EPS of $2.20, beating the Zacks Consensus Estimate of $2.19. Revenues of $24.18 billion topped the consensus mark of $23.87 billion. Net revenues rose 6.4%, and core EPS increased 4% from a year earlier.
Chairman and CEO Ramon Laguarta said that the company’s first half featured its fastest global volume growth since 2022, with foods volume rising 3% and beverages increasing 2%. He framed that as evidence that PepsiCo’s brand and portfolio strategy is gaining traction.
CFO Stephen Schmitt said that PepsiCo reaffirmed its 2026 outlook, including organic revenue growth of 2-4% and core constant-currency EPS growth of 4-6%, though he also stated that earnings are tracking toward the low end of that EPS range.
PepsiCo Leans on Overseas MomentumLaguarta repeatedly shifted attention to the international business, which he said is becoming a larger and more profitable part of PepsiCo’s mix. International operations delivered strong performances across EMEA, Asia Pacific Foods and the International Beverages Franchise.
In the release, EMEA saw 10% reported revenue growth and 6% organic growth, while Asia Pacific Foods grew 12% reported and 9% organic. International Beverages Franchise revenues rose 11%, with 9% organic growth and 5% beverage volume growth.
Schmitt added that second-quarter international operating margin expanded by a full point, reinforcing management’s view that global growth is not coming at the expense of profitability.
PEP Defends Its U.S. Foods ResetThe sharpest investor scrutiny stayed on North America, especially PepsiCo Foods North America. PFNA’s second-quarter reported revenues fell 2%, and core constant-currency operating profit declined 8%, even as management highlighted improving category and share trends.
Laguarta said that affordability investments and growth in permissible and portion-control offerings helped turn the U.S. salty snacks category back to positive volume, with PepsiCo gaining volume share. He said that was a central strategic objective entering the year.
Still, he acknowledged that second-quarter volume improvement fell short of expectations. He cited a weaker consumer backdrop, driven mainly by higher gas prices, plus delays in executing some price investments and shelf-space gains with customers.
PepsiCo Sees Pressure in Impulse ChannelsAnalyst questions pushed hardest on convenience and gas, where PepsiCo said that traffic conversion into purchases weakened as fuel prices rose. Laguarta stated that the pattern was most visible in impulse channels and was a new pressure point in the quarter.
Management’s answer was not to retreat from value spending. Instead, Schmitt said that PepsiCo will keep “playing offense,” with higher North America advertising and marketing spending in the second half while refining customer-by-customer trade and pricing tactics.
On the beverage side, PBNA’s operating margin fell about 90 basis points. Schmitt said that about half of the gross profit rate decline came from the Alani commercial arrangement, with the rest tied to channel softness and mix.
PEP Finds Help From Tariff RefundsSchmitt gave investors one important bridge for the second half: tariff refund claims tied to last year’s payments are expected to add about one full point of EPS growth for 2026. That benefit is set to help offset commodity inflation and support continued reinvestment.
He said that PepsiCo expects a gradual improvement in North America, stronger international performance and more productivity in the fourth quarter than the third quarter. He also flagged a higher year-over-year tax rate and the timing of certain costs as factors shaping the back-half cadence.
Laguarta added that productivity remains the funding mechanism behind the strategy, with automation, digitalization and logistics integration in the United States intended to support growth investments without starving overseas markets of capital.
PepsiCo Leaves a Measured ToneThe call’s overall tone was constructive, but not relaxed. Management sounded confident in the international platform and in the long-term logic behind affordability, portfolio transformation and away-from-home expansion in North America.
At the same time, PepsiCo spent much of the Q&A defending execution and timing in the United States, rather than declaring the turnaround complete. That left the back half positioned as a proof period for converting volume gains and strategic investments into cleaner profit momentum.
Zacks Signals for PEP StockPEP carries a Zacks Rank #4 (Sell), along with a Value Score of C, a Growth Score of B, a Momentum Score of D and a VGM Score of C. Within the Zacks framework, the rank carries the most weight because it reflects earnings estimate revisions, while the Style Score serves as a complementary indicator.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
That combination points to relatively better growth characteristics than value or momentum, but the Rank #4 remains the more cautious near-term signal. The Zacks Rank can change after analysts revise estimates following the just-reported results, so the stock’s standing is not fixed.
PepsiCo’s NASDAQ: PEP Q2 earnings weakness isn’t a problem; it may be more of an opportunity for investors, as near-term hiccups have led to softness in the stock price. In this scenario, softness in the stock price creates a potential buying opportunity in a fundamentally sound, premium play on consumer staples. The critical details coming out of the report aren’t the mixed adjusted earnings-per-share (EPS) comparison, which was roughly in line with expectations, but rather the strong top-line performance, diversification strength, cash flow, and capital return, which remain on track.
PepsiCo Today
$137.86 -4.65 (-3.26%)
As of 07/9/2026 04:00 PM Eastern
52-Week Range$133.63▼
$171.48Dividend Yield4.29%
P/E Ratio21.64
Price Target$162.65
For investors, the key point is that PepsiCo’s growth engine improved from the prior year, driving healthy cash flow and enabling management to continue executing strategy while returning capital to shareholders. Strategy includes investing in growth opportunities and margins, which is what really matters. PepsiCo’s margins fuel an impressive capital return, which, at mid-2026 price points, is ultra-cheap. The dividend alone is worth more than 4%, and while the payout ratio is high relative to earnings, coverage is sufficient to keep the balance sheet healthy.
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Balance sheet highlights include the use of debt and relatively high levels at that, but all other metrics are healthy. Highly stable cash flow and 16x interest coverage support high investment-grade credit ratings from all agencies, with Q2 results including increased equity. Equity improved by more than 8%, further compounding the leverage from share buybacks. Buyback activity reduced the count by 0.3% in the first six months of the year, with PepsiCo continuing to target approximately $1 billion in repurchases and $7.9 billion in dividends for the full year.
PepsiCo’s Diversified Portfolio Drives Growth in Q2PepsiCo had a solid Q2, with reported revenue accelerating to 6.4% year over year (YOY). The $24.18 billion in revenue topped consensus estimates, underpinned by strength in international markets.
However, the cleaner read on underlying demand was more modest. Organic revenue increased 2.4%, with PepsiCo Foods North America contracting 2% and PepsiCo Beverages North America growing 1%.
International results were stronger, with International Beverages Franchise and Asia Pacific Foods each growing 9%, Europe, Middle East, and Africa growing 6%, and Latin America Foods growing 4%.
Foreign exchange contributed 2.2 percentage points to reported growth, while acquisitions and divestitures added a net 1.8 percentage points.
Margin is a concern, but only a slight one, given the results. The company experienced margin pressure but was able to mitigate the impact. The good news is that the bottom line, $2.20 in adjusted earnings per share (EPS), is up 4% compared to last year; the bad news is that earnings growth lagged the top line. Either way, earnings are sufficient to sustain the capital return outlook, which matters to long-term holders.
Analysts Look Past Q2 Results: Long-Term Outlook IntactAmong the factors supporting the long-term outlook is PepsiCo’s reaffirmed guidance. The company continues to expect about 3% in organic revenue growth and to return $8.9 billion in capital to shareholders. This will keep analysts and institutions in the market, and their trends reflect cautious optimism.
MarketBeat tracks 20 analysts rating PEP as a consensus of Hold, with one Sell, 11 Hold, and eight Buy ratings. That gives the stock a 40% Buy-side bias, while the average 12-month price target of about $165 still implies double-digit upside from recent levels.
Overall MarketRank™93rd Percentile
Analyst RatingHold
Upside/Downside18.0% Upside
Short Interest LevelHealthy
Dividend StrengthStrong
News Sentiment0.63 Insider TradingN/A
Proj. Earnings Growth5.57%
See Full Analysis
The likely outcome is that this group continues to hold PEP, waiting for the upcoming inflection. It centers on massive cost-cutting, price rationalization, and efficiency improvements and is expected to begin yielding tangible results in the upcoming year. Institutions are more obviously bullish, owning more than 70% of the stock and buying at an aggressive $ 2.3-$1 pace over the trailing 12 months.
PepsiCo’s stock price shed 5% following the release, but a significantly larger decline is unexpected. The market remains within a consolidation range and well above lows set in 2025, on track to complete a full reversal in time. The biggest risk is the timing of the margin recovery, which may not come until early in 2027 or later. With thin volume in play, PepsiCo stock might wallow within its range for the foreseeable future, giving investors time to establish their positions.
Ultimately, PepsiCo is a value play. This Dividend King trades at a low 16.5x the current-year earnings forecast, about 50% below its historical average. The opportunity is to get into PepsiCo now while the market is mispricing it, and benefit from the dividend payments until the stock price reverts to historical norms. What the market gets wrong about PepsiCo is the impact of activist investors on the outlook, which is profitable, and valuation. PepsiCo isn't the beverage company it once was, but a multinational consumer-staples juggernaut with a considerable moat in high-margin, high-loyalty snack foods.
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Investors weren’t too eager to take a swig of PepsiCo (PEP 3.26%) after the beverage and snacks giant reported second-quarter results early on Thursday. This, despite headline figures that — depending on which consensus numbers are used — beat analyst estimates. The company’s shares slid by more than 3% that trading session, contrasting poorly with the 0.8% rise of the bellwether S&P 500 index.
Let’s tuck into PepsiCo’s quarter to find out why it was such a flat, warm can of soda for many market players.
Image source: Getty Images.
Where’s the fizz?During the quarter, PepsiCo’s net revenue was just under $24.2 billion, up 6% year over year. The company’s net income under generally accepted accounting principles (GAAP) grew much more robustly, doubling and then some to almost $2.99 billion from the year-ago profit of $1.26 billion. Yet on a per-share, non-GAAP (adjusted, or “core” in company parlance) basis, net income only inched up by 4% to $2.20.
This meant a pair of beats for PepsiCo, though these were modest. On average, analysts tracking the stock were modeling net revenue of $23.9 billion and core earnings per share (EPS) of $2.19.
Despite the growth in key fundamentals, other metrics were lower this quarter. The company’s largest single market remains its native North America, so weakness there is always cause for concern. Second-quarter sales in the company’s food (i.e., snacks) business there fell by 2% year over year. And while revenue from its beverages rose by 7%, much of this was due to recently integrated acquisitions and partnerships. The latter included a deal with Celsius (CELH 0.24%) to distribute that company’s hotly popular drink line Alani Nu.
It’s revealing that overall volumes for North America beverages sank in spite of this, falling by 4%. And, when stripping out acquisitions and divestitures from the mix, that drinks unit saw only a 1% organic revenue gain.
In the conference call discussing the results, PepsiCo CEO Ramon Laguarta attributed the U.S. declines to changes in consumer behavior. He speculated that the soaring price of gasoline was affecting traffic at convenience stores. This is a major sales channel for the company as items like its Pepsi and Doritos are often impulse buys for customers filling their tanks or taking a rest from driving.
International flavorOn a brighter note or two, PepsiCo performed better in markets abroad. Its international beverages business saw gains in both volume (5%) and, especially, reported revenue (11%, or 9% when adjusted for foreign currency exchange). Better, since those acquisitions were concentrated on U.S. products, that overseas growth was entirely organic.
The company’s snacks also proved to be popular outside our borders. Standouts in this category were Asia Pacific and Latin America foods, which saw reported revenue growth of 15% and 12%, respectively.
So basically, PepsiCo had two diverging trajectories — the sluggishness of the North America operations, and the dynamism of its international efforts. The latter should help the company achieve growth in the coming quarters — it reiterated its guidance for full-year 2026, forecasting organic revenue growth of 2% to 4% over 2025, with a rise in core, constant-currently EPS of 4% to 6%.
Importantly for this Dividend King — PepsiCo is one of the rare companies that has declared dividend raises at least once annually for a minimum of 50 years running — it expects to distribute $7.9 billion in shareholder payouts during the year. That’s up from the $7.6 billion it spent last year. Management also intends to devote $1 billion to share buybacks.
Potential yield trapI think PepsiCo still has some way to go in order to become an investor favorite again. Those slumps in the North America business are concerning and, outside of the unlikely possibility that international growth rockets much higher, softness in that market will negatively affect both the fundamentals and investor perception of the business.
A longer-term issue for PepsiCo is that, in many ways, it’s a poster boy for unhealthy food and drink consumption. That served it well for decades, but this century’s trend — at least on our shores — is towards more considered, healthier eating and quaffing. Yes, PepsiCo has diet/no-sugar drinks and moderately better-for-you snacks. But it’s still anchored by, and strongly identified with, goodies like Pepsi and Cheetos.
As for shareholder remuneration, PepsiCo is not only a Dividend King, its payout is bubbling into high-yield territory at almost 4.3%. This, however, is largely due to a weakened share price, which, after earnings, was teasing its one-year low.
While the dividend might be an attractive draw for investors hungry for yield or sniffing around for a bargain, that wouldn’t tip me into buying the stock. I don’t see either North America beverages or food improving much, and PepsiCo’s wares aren’t popular enough abroad to offset this significantly.
Release Date: July 09, 2026For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points PepsiCo Inc (PEP
PepsiCo’s Dividend Could Turn Patience Into Real ProfitPepsiCo NASDAQ: PEP executives reaffirmed the company’s full-year outlook during its 2026 second-quarter earnings question-and-answer session, pointing to strong international momentum and improving global volumes while acknowledging that North America, particularly impulse channels tied to gasoline purchases, performed below expectations in the quarter.
Chairman and CEO Ramon Laguarta said PepsiCo’s first-half results showed “almost 7% revenue growth,” with global volumes up 3% in foods and 2% in beverages, which he described as the company’s fastest volume growth since 2022. CFO Steve Schmitt said reported EPS grew 6% in the first half, while constant-currency EPS rose 3%.
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These 5 Companies Just Made a Massive Bet on ThemselvesStill, management repeatedly cited a softer-than-expected North American environment in the second quarter, with higher gasoline prices affecting consumer behavior and convenience-store purchasing. Laguarta said the company continues to see strong international performance and expects North America to gradually improve in the second half, though at “a more moderate pace” than previously anticipated.
North America Focuses on Affordability, Portfolio Changes A key topic on the call was PepsiCo Foods North America, where volume was flat in the quarter despite stepped-up affordability initiatives and innovation. Laguarta said the company had two main goals for its U.S. foods business: get the salty-snacks category back to volume growth and regain volume share. He said PepsiCo has made progress on both.
Campbell's Soup Stock: Deep Value and a 7% Dividend Yield“A category that was negative in volume now is positive in volume,” Laguarta said. “We were losing share in volume. We’re gaining share in volume.”
Management said the turnaround is being driven by two pillars: price and affordability investments, and growth in “permissible” products and portion-control offerings. Laguarta said the permissible foods portfolio is already a $3 billion business and is growing “almost double digit.” He also pointed to portion-control formats and opening price points in multipacks and variety packs as areas that are working well.
At the same time, Laguarta said PepsiCo needs to improve the return on some of its pricing investments in the second half. He described the work as customer-by-customer and channel-by-channel, with different approaches needed for high-low retailers versus everyday-low-price retailers.
“It’s trying to get more volume from the investments,” Laguarta said in response to a question about what optimizing return on investment means.
Gas Prices Weigh on Convenience and Impulse Channels Executives said higher gasoline prices following the Iran war had a meaningful impact on consumers, not just in the U.S. but globally. Laguarta said the U.S. effect has been most visible in impulse channels such as convenience stores and independent outlets, where PepsiCo is seeing slower conversion of store traffic into food and beverage purchases.
To address the issue, PepsiCo is working with retail partners on offers such as bundles, meal-linked promotions and combined food-and-beverage solutions. Laguarta said the company sees benefits when it has “good offers and bundles” in the channel.
He also said PepsiCo is not trying to raise prices in single-serve products to pay for investments in take-home formats.
“That’s not what we’re trying to do,” Laguarta said.
Asked about test-market work that supported the company’s affordability strategy, Laguarta said the consumer is “worse than what we had anticipated,” largely because of gasoline prices, and that some price investments at certain customers experienced execution delays for commercial reasons. He said those issues have been addressed and should support acceleration in the second half.
Guidance Reaffirmed, Tariff Refunds to Offset Cost Pressure Schmitt said PepsiCo reaffirmed its full-year guidance, though he noted results may trend toward the low end of the EPS range the company had previously provided. He said management expects international net revenue to remain strong, North America to gradually improve and commodity pressures to increase.
PepsiCo also expects refund claims for tariffs paid last year to provide about 1 full point of EPS growth for the year. Schmitt said those refunds will help offset commodity pressure and allow the company to continue investing in the business.
“We’re not making decisions that hurt the top line in our assessment,” Schmitt said. He added that North America advertising and marketing expense is projected to increase in the second half compared with the prior year.
Schmitt said third-quarter results are expected to benefit from international strength and approximately 1 point of EPS benefit from tariff refund claims, but also face a higher year-over-year tax rate and timing of certain costs and investments. He said PepsiCo expects more productivity in the fourth quarter than in the third quarter.
International Business Remains a Growth Driver Management emphasized the strength of PepsiCo’s international business throughout the call. Laguarta said the international business is expected to cross $40 billion this year and has become a major contributor to company volume, revenue and profit. He said international beverage volumes represent about two-thirds of PepsiCo’s total company beverage volume, while international foods volumes represent more than half.
Laguarta said markets in Asia and the Middle East remained resilient despite concerns about elevated gasoline prices. He also cited strong performance in Europe, where World Cup sponsorship activity in the food business is helping activate the category, and said Latin America was growing somewhat less than the rest of the business but remained positive.
Schmitt said international operating margin increased by a full point in the second quarter, showing not only top-line growth but improved flow-through on the profit and loss statement. He noted that PepsiCo expects some commodity inflation in the second half, particularly in EMEA, but said teams have been proactive in mitigation efforts.
PBNA Margins, M&A and U.S. Productivity Initiatives In PepsiCo Beverages North America, Schmitt said operating margin declined about 90 basis points in the quarter, driven by gross profit rate. He attributed about half of the gross profit rate decline to the company’s Alani commercial arrangement, with additional pressure from softness in convenience and gas channels and product mix.
Laguarta said PepsiCo continues to see momentum in no-sugar beverages, functional hydration and energy, as well as innovation expected to scale in the second half.
On recent acquisitions, Laguarta said both Siete and poppi are “doing well.” He said poppi experienced some transition impact as it moved from its prior distributor system into PepsiCo’s system, but that issue is “pretty much solved.” Siete had ingredient-related issues in April and May, which he said have also been resolved. He also cited partnerships such as Celsius and Alani Nu as ways PepsiCo is expanding consumer offerings.
Executives also discussed productivity initiatives in the U.S., including automation, digitalization and efforts to combine scale across the company’s North American food and beverage businesses. Laguarta said PepsiCo is testing combined mixing centers, combined delivery and combined fleet concepts in Texoma, with more detail expected later this year or early next year.
Laguarta said the objective is to fund U.S. transformation without reducing investment in international markets, which he described as PepsiCo’s largest long-term growth opportunity.
About PepsiCo NASDAQ: PEPPepsiCo, Inc NASDAQ: PEP is a multinational food and beverage company headquartered in Purchase, New York. The company develops, manufactures, markets and sells a broad portfolio of branded food and beverage products, including carbonated and noncarbonated soft drinks, bottled water, sports drinks, juices, ready-to-drink teas and coffees, salty snacks, cereals, and other convenient foods. Its leading consumer brands include Pepsi, Mountain Dew, Gatorade, Tropicana, Quaker, Lay's, Doritos and Cheetos, among others.
Formed through the 1965 merger of Pepsi-Cola and Frito-Lay, PepsiCo has grown into a global business with integrated manufacturing, distribution and marketing operations.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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PepsiCo CEO Ramon Laguarta discusses efforts to grow the company faster in the U.S. and consumer prices on 'The Claman Countdown.' #fox #media #breakingnews #us #usa #new #news #breaking #foxbusiness #theclamancountdown #pepsico #ramonlaguarta #business #economy #consumer #prices #inflation #growth #market #stocks #investing #retail #food #beverages #company #corporate #finance #manufacturing
Ke konci obchodní seance se mírně přelil kapitál z čipových společností do klasických technologických. Přesto společnosti jako AMD + 5,67 %, Micron +4,39 %, či Broadcom +3,2 % končí výrazně v zeleném a čipový sektor táhl celý trh. Společnosti SpaceX se podařilo dostat opět nad otevírací cenu po IPO a přidala dnes +2,65 %.
Sektor spotřebního zboží dnes táhly dolů akcie PepsiCo, která po ne příliš oslnivých výsledcích odepsala nakonec -3,26 %. V kladných hodnotách se udržely i kryptoměny, kdy Bitcoin přidal +1,8 %.
Na opačné straně stála cena ropy, kde WTI propadl o -2,22 %, a to z důvodu mírného uklidnění situace v Íránu.
Index Dow Jones +0,27 % na 52487,38 b.
S&P 500 +0,81 % na 7543,54 b.
Nasdaq Composite +1,3 % na 26206,89 b.
Index S&P 500 +0,81 % na 7543,54 b. Nejsilnější sektory S&P Změna Nejslabší sektory S&P Změna Informační technologie +1,6 % Nezbytná spotřeba -1,8 % Zbytná spotřeba +1,5 % Energie -1,6 % Finanční sektor +1 % Utility -0,5 % Nejsilnější akcie S&P Změna Nejslabší akcie S&P Změna Lumentum Holdings (LITE) +11 % APA Corp (APA) -5,1 % Hewlett Packard Enterprise (HPE) +9,9 % Paramount Skydance Corp (PSKY) -4,3 % Fedex Freight Holding (FDXF) +7,6 % Costco Wholesale Corp (COST) -4,2 % Sandisk Corp (SNDK) +7,6 % Cincinnati Financial Corp (CINF) -3,4 % Norwegian Cruise Line Holdings (NCLH) +7,0 % PepsiCo (PEP) -3,3 %
Jan Pazourek, Fio banka, a.s.
Shares of PepsiCo (NASDAQ:PEP | PEP Price Prediction) slipped after Wednesday’s Q2 filing, opening today near $136.11 after closing at $142.51. The pullback opens an entry point. Our 24/7 Wall St. price target for PepsiCo is $169.51, implying 24.54% upside over the next 12 months.
Our recommendation is buy, with confidence rated high at 90%. The setup: a dividend aristocrat trading at a mid-teens forward multiple with organic volume growth at multi-year highs.
Metric Value Current Price $136.11 24/7 Wall St. Price Target $169.51 Upside 24.54% Recommendation BUY Confidence Level 90% The Post-Earnings Reset PEP is down 4.49% today after Q2 results, though the stock is still up 9.69% over the past year and 1.23% year to date. The 52-week high sits well above today’s price, with the low at $128.66. Q2 core EPS came in at $2.20 on revenue of $24.18 billion, a 6.4% YoY gain and the fourth straight EPS beat.
International segments led the quarter, with Latin America Foods +15%, Asia Pacific Foods +12%, International Beverages Franchise +11%, and EMEA +10%. PepsiCo Foods North America slipped 2% on softer pricing, and core operating margin contracted 40 basis points.
CEO Ramon Laguarta noted that “PepsiCo’s global organic volume has increased at the highest rate since 2022”, and management reaffirmed 2-4% organic revenue growth and 4-6% core constant currency EPS growth for FY2026.
Why Bulls See a Breakout The bull case rests on international acceleration and the productivity flywheel. Bulls point to Q1 2026 operating margin expansion of 210 basis points and management’s guidance for a “record year on productivity.” poppi integration, functional hydration wins at Gatorade and Propel, and the 2026 World Cup “No Lays No Game” campaign add commercial tailwinds.
Capital returns are massive: $8.9 billion in 2026 cash returns, a 54th consecutive dividend hike to $5.92 annualized, and a fresh $10 billion buyback authorization through 2030. Our bull-case scenario points to $176.32, a 29.54% return. The Street’s high analyst target sits at $165.55 on 8 buy ratings.
The Risks Worth Watching The bear case rests on North America. PFNA revenue fell 2% in Q2, core operating margin compressed 40 basis points, and global minimum tax regs are trimming EPS growth by 1-2 percentage points. FY2025 operating income fell 19.57% on $1.993 billion in Rockstar and Be & Cheery impairments.
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Bulls counter that impairments are non-recurring and the margin dip reflects reinvestment in affordability initiatives already driving share gains. Our bear-case target is $153.40, still 12.70% above today’s price. Bearish analyst sentiment is only 4%, with just 1 sell rating.
How PepsiCo Compares to Coca-Cola and Mondelez Coca-Cola (NYSE:KO) is the closest global beverage comp. Coke posted Q1 2026 organic revenue growth of 10% with operating margin at 35.0%, well above Pepsi’s Q1 2026 16.5%. At a $352 billion market cap versus Pepsi’s $186 billion, Coke carries the premium multiple. Pepsi looks cheap on a relative basis, supporting our $169.51 target.
Mondelez (NASDAQ:MDLZ) is the pure-play global snacks peer to Frito-Lay. Mondelez beat Q1 2026 EPS by 10.22% but adjusted operating margin fell 310 basis points to 11.7% on cocoa inflation, and FY2026 guidance calls for only flat to 2% organic revenue growth. PepsiCo’s diversified snacks-plus-beverages model with a 53% gross margin looks more resilient, further supporting our target.
The Dip in Context The 24/7 Wall St. price target of $169.51 with 24.54% upside and 90% confidence points to buy. Valuation is the tipping factor: a mid-teens forward multiple on a business with reaccelerating international volumes and a fortress balance sheet.
The setup rewards investors with a two-year holding horizon while North America snacks stabilize. The picture changes if commodity and tariff pressure force another guidance cut in Q3.
Here is where our model projects PEP could trade, assuming current growth trajectories and the reaffirmed 4-6% long-term EPS algorithm hold.
Year 24/7 Wall St. Price Target 2026 $149.60 2027 $168.43 2028 $197.86 2029 $222.43 2030 $243.39 These projections assume Pepsi continues executing its productivity and international growth playbook. Significant upside or downside could come from faster margin recovery in North America or sustained commodity and tariff headwinds.
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Analyst’s Disclosure: I/we have a beneficial long position in the shares of VICI either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
On Thursday, July 9, PepsiCo released its Q2 2026 earnings. Given how many remain worried how inflation and gas prices would affect consumer spending, this earnings call was closely watched.
Key Takeaways: PepsiCo released its Q2 2026 earnings, to mixed but relatively positive results. Earnings per share were slightly under expectations, but revenue jumped in part due to global volume growth. However, volume growth was absent in the United States, due to the impact of inflation and gas prices. PepsiCo’s earnings showcase why gaining diversified access to the company through the ETF wrapper can pay off, limiting one’s exposure to sectors damaged by inflation. Overall, PepsiCo’s earnings statement was mixed, but leaned towards the positive side. Earnings per share came in one cent below expectations at $2.20, but revenue outpaced expectations at $24.18 billion.
Net revenue increased by 6.4% for the quarter and 7.3% year to date. Meanwhile, global volume increased by 3% for PepsiCo’s foods and 2% for its beverages.
However, it’s crucial to note that much of the volume growth was coming from countries outside the United States. Domestically, food volume remained unchanged, and beverage volume actually dropped by 4%.
See More: The Inflation Impact: 3 ETF Approaches for Managing Risk
That being said, this is likely less reflective of PepsiCo as a whole and more a symptom of shifting consumer sentiment. With Americans increasingly worried about inflation and prices at the pump rising, they may be skimping out on buying snacks and soft drinks.
“Our second quarter results featured strong organic volume and net revenue growth for the global convenient foods and global beverages businesses,” said PepsiCo Chairman and CEO Ramon Laguarta. “Year-to-date, PepsiCo’s global organic volume has increased at the highest rate since 2022 – aided by the strength of the international business and the continued evolution of the portfolio to offer more choices through portion control varieties, diverse ingredients, functional benefits such as hydration, protein and fiber, energy and zero sugar beverage varieties.”
Domestic Worries Make The Case for Diversification PepsiCo’s earnings could encourage investors and advisors to play exposure to the company in a few ways. Yes, the company struggled in North America, but its global results were certainly impressive. As such, maintaining balanced exposure that doesn’t tip too much into consumer staples could pay off in the long run.
See More: Tackle Market Uncertainty With This Consumer Staples ETF
As just one example, take a look at the First Trust Morningstar Dividend Leaders Index Fund (FDL). FDL provides exposure to a variety of large-cap companies with storied track records for generating dividends.
PepsiCo is among the top five holdings for this fund, as of July 8, 2026. 4.99% of the fund’s assets are allocated towards the company.
Crucially, FDL provides noticeable sector diversification as well. While consumer staples is the top sector of the fund, it only accounts for 24.60% of the portfolio, as of July 8, 2026. This illustrates how investors can maintain disciplined exposure to PepsiCo without needing to tilt into the consumer staples sector too aggressively.
For more news, information, and analysis, visit the Equity ETF Content Hub.
PepsiCo says high prices at the pump are keeping consumers from heading into the store to buy snacks.
The food and beverage giant reported earnings Thursday (July 9) revenues of $24.2 billion for the quarter, climbing 6.4% from the same period last year. However, this growth came from the company’s international business, with North American food volumes flat and beverage volume down 4%.
“In the U.S., we’re seeing the consumer changing behaviors, basically an acceleration of some of the behaviors we saw in the past,” CEO Ramon Laguarta said during an earnings call. “Probably some channels, more the impulse channels, have been impacted, where there is more of a correlation with the price of gas. Certain convenience stores … we’re seeing a slowdown of the conversion of traffic into purchases. We’re seeing that. Now, will it change in the coming months? It all depends on the price of gas, clearly that’s something that is beyond our control.”
“We need to see some improvement in the convenience and gas channel,” Steve Schmitt, the company’s chief financial officer, said later in the call. “Hopefully we’ll get some tailwinds from gas prices to do that. We’ll continue to push the productivity side.”
The earnings come as American consumers continue to find ways to stretch their budgets. As PYMNTS reported Thursday, that includes adopting the practice of cash stuffing, or dividing currency into envelopes labeled for things like groceries, rent or utilities.
It has become one of the more notable finance trends on social media, but it is actually one of the oldest methods of household budgeting.
“For decades, payday followed a familiar routine. Workers visited their bank to cash a paycheck, carried home paper currency and sorted it into envelopes reserved for the month’s expenses,” PYMNTS wrote. “Rent had its envelope. Groceries had another. Utility payments had another. When bills came due, consumers either returned to the bank for a money order, wrote checks from their accounts or paid companies directly. The envelopes served as a household ledger long before budgeting software existed.”
Research from PYMNTS Intelligence highlights how and why Generation Z is keen to follow in older generations’ footsteps on this front. Although this age group is commonly portrayed as rewriting the rules of commerce and banking, the research tells a different story.
“Strip away the smartphones and mobile apps, and Gen Z wants what previous generations wanted: to save money, build financial security, shop efficiently and maintain control over household finances,” the report added.
A sharp sector rotation has knocked down some of the market’s steadiest names, and Jim Cramer told CNBC viewers this week that the dislocations are exactly the kind of setup patient investors should welcome. On the July 6 episode of Mad Money, Cramer framed the pullback this way: “These rotations create dislocations that seem to come out of nowhere. And sometimes those dislocations can give you incredible opportunities to high quality companies at a discount that shouldn’t even exist. And it wouldn’t if it weren’t for the rotation.”
Cramer named three specific dip-buy candidates on the following night’s show.
Walmart: Fuel Fears Fade as the Stock Slides On the July 7 Mad Money, Cramer said “Walmart’s down nearly 18% from its recent highs. I think you’re getting an incredible buying opportunity here because the stock’s been getting pummeled right as Walmart’s biggest worries have started to fade away.” His thesis centers on gasoline: “Six weeks ago, everybody was terrified that Walmart and many other retailers would be laid to waste in a world where consumers had to spend fortunes at the pump. That world is gone, people.”
Walmart (NYSE:WMT | WMT Price Prediction) trades around $113.19, off 6.17% over the past month against a 52-week high of $135.16. The fundamentals came through in the Q1 FY27 report: revenue of $175.68 billion grew 6.1% year over year, global eCommerce jumped 26%, and Walmart Connect ad revenue rose 44% excluding VIZIO. Management reaffirmed full-year adjusted EPS guidance of $2.75 to $2.85 and authorized a fresh $30 billion buyback in February.
Johnson & Johnson: A Pure-Play Pharma Cramer Says Was Sold by Mistake Cramer’s July 6 pitch on Johnson & Johnson (NYSE:JNJ): “Johnson & Johnson is now a pure-play pharma business with no consumer exposure. It already spun off its over-the-counter business and it’s parting with Orthopedics. Even though they’re being taken down by mistake, that’s why I think you have to pounce.”
The stock rebounded 14.81% over the past month to around $266.13. Q1 2026 revenue rose 9.91% to $24.062 billion, marking a fourth straight EPS beat. Growth drivers include DARZALEX at $3.964 billion (up 22.5%), TREMFYA at $1.608 billion (up 68.3%), and MedTech Cardiovascular up 13.0%. Management raised full-year adjusted EPS guidance to $11.45 to $11.65 and pushed the quarterly dividend to $1.34, extending a 64-year streak of annual increases. Forward P/E sits at 23.
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PepsiCo: A 4% Yield Ahead of Thursday’s Report On the same July 6 show, Cramer said of PepsiCo (NASDAQ:PEP): “PepsiCo dropped nearly a buck, sinking to a level where it sports a dividend yield north of 4%. I think the rotation has given you a terrific place to start a position ahead of Thursday’s report.”
Well, earnings are now out, and PesiCo shares are down 3.3% to $137.73. After June’s quarterly bump to $1.48, PepsiCo’s 54th consecutive annual raise. For income-focused readers, our team has flagged similar setups in the 10 Dividend Kings to Buy Now and Hold Forever report.
A Selective, Stock-Specific Call Cramer has been cautious in other market pockets this summer, so these three ideas should be read as targeted, stock-specific dip-buying calls tied to a rotation. They are his opinions delivered on Mad Money and reported here for context, not endorsed as recommendations. Readers should weigh valuation, position sizing, and their own timelines before acting.
The Throughline The connective thread across Cramer’s three picks is defensive quality with rising cash returns: Walmart compounds retail dominance with high-margin advertising, Johnson & Johnson leans into a pharma pipeline, and PepsiCo defends a yield near 4% while international volumes accelerate. Whether the rotation is truly a gift will show up in the next earnings reports and in how quickly the market rewards fundamentals over sentiment.
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PepsiCo Inc (NASDAQ:PEP, XETRA:PEP) shares fell about 4% on Thursday after the food and beverage company reported fiscal second-quarter adjusted earnings that came in slightly below Wall Street expectations, despite revenue topping estimates and the company reaffirming its full-year outlook.
PepsiCo reported adjusted earnings per share of $2.20, compared with analysts' consensus estimate of $2.21.
Net revenue rose 6.4% year over year to $24.18 billion, exceeding expectations of $23.95 billion.
The company said second quarter revenue growth was driven by effective net pricing, organic volume growth, foreign exchange benefits and acquisitions.
International operations continued to support overall performance, with each international segment posting strong net revenue growth. PepsiCo said Asia Pacific Foods, International Beverages Franchise, and Europe, Middle East and Africa benefited from organic volume growth, while Latin America Foods showed sequential improvement in organic volume trends.
In North America, the convenient foods business gained volume market share through innovation and affordability initiatives, although net revenue declined, primarily reflecting lower effective net pricing. The beverages business posted strong net revenue growth, supported by acquisitions completed in 2025 and organic growth.
"Our second quarter results featured strong organic volume and net revenue growth for the global convenient foods and global beverages businesses,” PepsiCo CEO Ramon Laguarta said.
“Year-to-date, PepsiCo's global organic volume has increased at the highest rate since 2022 - aided by the strength of the international business and the continued evolution of the portfolio to offer more choices through portion control varieties, diverse ingredients, functional benefits such as hydration, protein and fiber, energy and zero sugar beverage varieties.”
The company reaffirmed its fiscal 2026 guidance, continuing to expect organic revenue growth of between 2% and 4% and core constant currency EPS growth of between 4% and 6%.
It also maintained its forecast for approximately $8.9 billion in total cash returns to shareholders, including $7.9 billion in dividends and $1.0 billion in share repurchases.
There's a rift between the two best-known carbonated beverage brands. PepsiCo (PEP 3.39%) is relatively out of favor. The beverage and salty snacks giant is trading 17% below its 52-week high and 28% lower than when shares peaked in early 2023.
Rival Coca-Cola is faring considerably better. Coca-Cola hit new highs this week. PepsiCo may be a laggard right now, but don't dismiss it as a potential winning investment. There are a few good reasons to take a chance on PepsiCo this month. Let's check them out.
Image source: Getty Images.
1. PepsiCo's yield is approaching a new high Pepsi stock's recent slide -- and its long streak of boosting its annual distributions -- has the shares trading at a 4.2% yield. It's closing in on last year's historic high. More downticks or another hike in the spring of next year should get it there.
May's 4% increase in its quarterly payouts extends PepsiCo's streak of annual hikes to 54 consecutive years. PepsiCo is royalty, as one of the country's 57 Dividend Kings with more than 50 years of increased distributions. It's one of just six Dividend Kings that are currently yielding more than 4%.
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137.68
2. The stock is cheap in a pricey market PepsiCo's guidance calls for meager but positive revenue growth this year, with earnings growing slightly higher. The company behind more than just its namesake soft drinks -- it's also the owner of Frito-Lay, Gatorade, and Quaker Oats -- trades at a discount to the market.
You can buy PepsiCo for just 16 times forward earnings. The beverage stock itself is growing much more slowly than that, but you should expect to pay a premium to collect a yield above 4% in today's market. That current payout is higher than even the top money market funds.
3. Taking a closer look at fresh financials PepsiCo released its latest financial results on Thursday morning. Its fiscal second quarter ended in mid-June, giving the beverage and food conglomerate the distinction of being one of the earliest reporters this critical earnings season. Its performance was a mixed bag.
The reported results seem great at first. Net revenue rose 6.4% for the quarter. Earnings per share more than doubled. Take it a step further, and organic revenue rose 2.4%. Core earnings per share climbed 4%, or just 1% on a constant currency basis. It was a slight beat on the top and a slight miss on the bottom. The stock initially ticked slightly lower ahead of the market open.
A silver lining is that its global organic sales volume through the first half of fiscal 2026 is PepsiCo's highest in four years. It's also not taking its recovery for granted, actively working on "restaging" its four main non-soda brands: Lays, Tostitos, Gatorade, and Quaker. The tweaks involve updating and upgrading the packaging, marketing, and even ingredients to appeal to a wider audience. It's a gamble, but one worth taking to accelerate its slumbering organic and core results. With more than five decades of dividend hikes, investors will continue to be rewarded for their patience in the turnaround process.
For the quarter ended June 2026, PepsiCo (PEP - Free Report) reported revenue of $24.18 billion, up 6.4% over the same period last year. EPS came in at $2.20, compared to $2.12 in the year-ago quarter.
The reported revenue represents a surprise of +1.32% over the Zacks Consensus Estimate of $23.87 billion. With the consensus EPS estimate being $2.19, the EPS surprise was +0.46%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how PepsiCo performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Reported Net Revenue, GAAP measure- IB Franchise (International Beverages Franchise): $1.52 billion versus $1.46 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +11.3% change.Reported Net Revenue, GAAP measure- EMEA (Europe, Middle East and Africa): $4.98 billion versus $4.85 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +9.9% change.Reported Net Revenue, GAAP measure- PBNA (PepsiCo Beverages North America): $7.24 billion versus the four-analyst average estimate of $7.16 billion. The reported number represents a year-over-year change of +6.6%.Reported Net Revenue, GAAP measure- PFNA (PepsiCo Foods North America): $6.37 billion compared to the $6.54 billion average estimate based on four analysts. The reported number represents a change of -1.7% year over year.Reported Net Revenue, GAAP measure- LatAm Foods: $2.94 billion compared to the $2.83 billion average estimate based on four analysts. The reported number represents a change of +15.4% year over year.Reported Net Revenue, GAAP measure- Asia Pacific Foods: $1.12 billion versus the four-analyst average estimate of $1.07 billion. The reported number represents a year-over-year change of +12.2%.Core Operating Profit, non-GAAP measure- PFNA (PepsiCo Foods North America): $1.37 billion versus the four-analyst average estimate of $1.57 billion.Core Operating Profit, non-GAAP measure- PBNA (PepsiCo Beverages North America): $992 million compared to the $1.07 billion average estimate based on four analysts.Core Operating Profit, non-GAAP measure- IB Franchise (International Beverages Franchise): $638 million compared to the $587.22 million average estimate based on four analysts.Core Operating Profit, non-GAAP measure- Corporate unallocated: $-453 million compared to the $-433.16 million average estimate based on four analysts.Core Operating Profit, non-GAAP measure- LatAm Foods: $620 million compared to the $512.03 million average estimate based on four analysts.Core Operating Profit, non-GAAP measure- Asia Pacific Foods: $134 million versus the four-analyst average estimate of $110.28 million.View all Key Company Metrics for PepsiCo here>>>
Shares of PepsiCo have returned -1.3% over the past month versus the Zacks S&P 500 composite's +1.1% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
Published in earnings earnings-estimates-revisions earnings-surprise
PepsiCo Inc (NASDAQ:PEP, XETRA:PEP) shares fell about 4% on Thursday after the food and beverage company reported fiscal second-quarter adjusted earnings that came in slightly below Wall Street expectations, despite revenue topping estimates and the company reaffirming its full-year outlook.
PepsiCo reported adjusted earnings per share of $2.20, compared with analysts' consensus estimate of $2.21.
Net revenue rose 6.4% year over year to $24.18 billion, exceeding expectations of $23.95 billion.
The company said second quarter revenue growth was driven by effective net pricing, organic volume growth, foreign exchange benefits and acquisitions.
International operations continued to support overall performance, with each international segment posting strong net revenue growth. PepsiCo said Asia Pacific Foods, International Beverages Franchise, and Europe, Middle East and Africa benefited from organic volume growth, while Latin America Foods showed sequential improvement in organic volume trends.
In North America, the convenient foods business gained volume market share through innovation and affordability initiatives, although net revenue declined, primarily reflecting lower effective net pricing. The beverages business posted strong net revenue growth, supported by acquisitions completed in 2025 and organic growth.
"Our second quarter results featured strong organic volume and net revenue growth for the global convenient foods and global beverages businesses,” PepsiCo CEO Ramon Laguarta said.
“Year-to-date, PepsiCo's global organic volume has increased at the highest rate since 2022 - aided by the strength of the international business and the continued evolution of the portfolio to offer more choices through portion control varieties, diverse ingredients, functional benefits such as hydration, protein and fiber, energy and zero sugar beverage varieties.”
The company reaffirmed its fiscal 2026 guidance, continuing to expect organic revenue growth of between 2% and 4% and core constant currency EPS growth of between 4% and 6%.
It also maintained its forecast for approximately $8.9 billion in total cash returns to shareholders, including $7.9 billion in dividends and $1.0 billion in share repurchases.
Key Takeaways PepsiCo topped Q2 earnings and revenue estimates as organic revenues rose 2.4% y/y and volumes improved.International organic revenues grew 7%, marking the 21st straight quarter of at least mid-single-digit growth.PEP reaffirmed its 2026 outlook, including 2-4% organic revenue growth and $8.9B in shareholder returns. PepsiCo, Inc. (PEP - Free Report) has reported strong second-quarter 2026 results, wherein revenues and earnings per share (EPS) beat the Zacks Consensus Estimate and improved year over year. Results have reflected organic revenue growth, favorable foreign currency translation, and a net benefit from acquisitions and divestitures.
PEP’s second-quarter core EPS of $2.20 beat the Zacks Consensus Estimate of $2.19 by 0.5% and improved 4% year over year. The company’s core constant-currency EPS increased 1%. Foreign currency aided EPS by 3%. Reported earnings were $2.18 per share versus 92 cents in the year-ago quarter.
Shares of the Zacks Rank #4 (Sell) company have lost 9.1% in the past three months against the industry’s 5% growth.
Image Source: Zacks Investment Research
Peek Into PEP’s Q2 DetailsNet revenues rose 6.4% to $24.18 billion and surpassed the Zacks Consensus Estimate of $23.87 billion by 1.3%. Organic revenues increased 2.4%, with global convenient foods organic volume up 3% and global beverages organic volume up 2%.
PepsiCo’s net revenue growth included a 2.2-percentage-point benefit from foreign exchange translation and a 1.8-percentage-point net benefit from acquisitions and divestitures. Organic revenue growth reflected effective net pricing and a contribution from organic volume growth.
Our model predicted year-over-year organic revenue growth of 2.6% for the second quarter, with a 2.5% gain from the price/mix and a 0.1% rise in volume.
On a consolidated basis, the reported gross profit rose 5.5% year over year to $13.11 billion. The core gross profit increased 4.7% year over year to $13.12 billion. The reported gross margin contracted 50 bps to 54.2%, whereas the core gross margin fell 80 bps year over year to 54.3%, reflecting the continued impacts of cost pressures and business investments.
We anticipated the core gross margin to decline 40 bps year over year to 54.7% in the second quarter. In dollar terms, core gross profit was expected to increase 4.1% year over year.
PepsiCo’s operating profit surged 125% to $4.02 billion in the second quarter of 2026, while core operating profit increased 4% to $4.07 billion. The sharp reported operating profit increase reflected prior-year impairment charges related to the Rockstar and Be & Cheery brands, lower restructuring charges and a favorable net impact of acquisition and divestiture-related charges and credits.
The reported operating margin expanded 875 bps to 16.6%. The core operating margin contracted 40 basis points to 16.8%, as productivity savings and effective net pricing were partly offset by certain operating cost increases.
Our model predicted core SG&A expenses of $8.9 billion, which indicated year-over-year growth of 3.3%. As a percentage of revenues, core SG&A expenses were anticipated to be 37.4%, suggesting a 50-bps decline from the prior-year quarter.
We expected a core operating margin of 17.4%, implying a 20-bps increase from the year-ago quarter’s actual.
PEP’s Segment TrendsPepsiCo Foods North America delivered net revenues of $6.37 billion, down 2% year over year. Organic revenues also declined 2% due to lower effective net pricing. The segment continued to gain volume share in North America, aided by innovation and affordability initiatives. Management noted improvements in household penetration and volume share across the U.S. savory and salty categories.
PepsiCo Beverages North America generated net revenues of $7.24 billion, up 7% year over year. Organic revenues grew 1%, while acquisitions, net of divestitures, contributed 6 percentage points to reported revenue growth. However, the organic volume declined 4%, including a 0.5-percentage-point headwind tied to the case pack water business transition to a third-party partner. Functional hydration and zero-sugar offerings remained bright spots.
International results were the strongest part of the quarter. International organic revenues increased 7%, marking the 21st consecutive quarter of at least mid-single-digit organic revenue growth.
Within the international business, International Beverage (IB) Franchise revenues rose 11% to $1.52 billion, with organic revenues up 9%. The organic volume increased 5% in the segment, which represents more than 60% of global beverage volume. The international convenient foods organic volume increased 4%, which represents 70% of the global convenient foods volume.
Europe, Middle East and Africa revenues increased 10% year over year to $4.98 billion, with organic revenues up 6%. Latin America Foods’ revenues rose 15% to $2.94 billion, while organic revenues increased 4%. Asia Pacific Foods’ revenues advanced 12% to $1.12 billion. Organic revenues grew 9%, supported by a 10% organic volume increase, the strongest volume performance among the reported segments.
Financials of PepsiCo Show StabilityPEP ended second-quarter 2026 with improved liquidity, as cash and cash equivalents of $10.25 billion as of June 13, 2026, increased from $9.16 billion at the end of fiscal 2025. Short-term debt obligations were $10.6 billion, while long-term debt obligations were $42.61 billion.
Net cash provided by operating activities was $2.37 billion as of the end of second-quarter 2026 compared with $996 million in the year-ago period. Capital spending totaled $1.27 billion.
The company paid out cash dividends of $3.91 billion and repurchased $479 million of shares in the first half of 2026.
PEP’s Outlook for 2026PepsiCo has reaffirmed its outlook for 2026. The company expects organic revenue growth of 2-4% and net revenue growth of 4-6% on a reported basis.
Core constant-currency EPS is anticipated to increase 4-6%, with core EPS growth of 5-7%. Based on current rates, foreign exchange translation is expected to provide a 1-percentage-point benefit to reported net revenue and core earnings growth. Acquisitions, net of divestitures, are expected to contribute 1 percentage point to reported revenue growth. The company expects a core effective tax rate of 22% for 2026.
The company expects capital spending to remain below 5% of net revenues, while targeting a free cash flow conversion ratio of at least 80%.
PEP has been committed to rewarding its shareholders through dividends and share buybacks. It expects to return total cash of $8.9 billion to shareholders in 2026, including $7.9 billion in dividends and $1 billion in share repurchases.
Don’t Miss These Better-Ranked StocksFomento Economico Mexicano S.A.B. de C.V. (FMX - Free Report) , alias FEMSA, is a leading Latin American consumer company with operations spanning retail, beverage bottling and logistics, serving millions of customers across multiple markets. The company currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for FEMSA’s 2026 sales and earnings implies growth of 17.3% and 131%, respectively, from the previous year’s reported numbers. FMX delivered a trailing four-quarter negative earnings surprise of 17%, on average.
The Coca-Cola Company (KO - Free Report) is the world's largest non-alcoholic beverage company, marketing a broad portfolio of sparkling soft drinks, water, juice, coffee, tea and sports beverages. It currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Coca-Cola’s 2026 sales and earnings indicates growth of 3% and 8.7%, respectively, from the prior-year reported levels. KO delivered a trailing four-quarter earnings surprise of 4.5%, on average.
Ambev S.A. (ABEV - Free Report) is a leading beverage company in Latin America, producing, distributing and selling beer, soft drinks and other non-alcoholic beverages across multiple markets in the region. It carries a Zacks Rank #2 at present.
The Zacks Consensus Estimate for Ambev’s 2026 sales and earnings implies increases of 16.7% and 16.6%, respectively, from the prior-year reported levels.
PepsiCo (PEP) sees strength abroad but weakness in the U.S. Marley Kayden walks investors through the legacy snack and drink company's earnings and explains why domestic revenue is continuing the stock's downslide. Joe Tigay offers an example options trade for PepsiCo. ======== Schwab Network ======== Empowering every investor and trader, every market day.
U.S. stocks traded higher midway through trading, with the Dow Jones index gaining over 150 points on Thursday.
The Dow traded up 0.32% to 52,513.93 while the NASDAQ rose 0.84% to 26,088.28. The S&P 500 also rose, gaining, 0.60% to 7,527.54.
Leading and Lagging Sectors
Information technology shares jumped by 1.3% on Thursday.
In trading on Thursday, communication services stocks fell by 1.7%.
Top Headline
PepsiCo, Inc. (NASDAQ:PEP) shares fell around 5% on Thursday after the company reported second-quarter results Thursday that topped revenue expectations but fell just short on adjusted earnings.
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.
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Commodities
In commodity news, oil traded down 0.9% to $72.87 while gold traded up 1.3% at $4,135.80.
Silver traded up 3.6% to $60.670 on Thursday, while copper rose 2.6% to $6.2630.
Euro zone
European shares were mostly higher today. The eurozone’s STOXX 600 rose 0.7%, while Spain’s IBEX 35 Index rose 1%. London’s FTSE 100 fell 0.4%, Germany’s DAX gained 0.5%, while France’s CAC 40 gained 0.7%.
Asia Pacific Markets
Asian markets closed mixed on Thursday, with Japan’s Nikkei 225 gaining 1.38%, Hong Kong’s Hang Seng index falling 0.70%, China’s Shanghai Composite rising 1.65% and India’s BSE Sensex gaining 0.31%.
Economics
U.S. initial jobless claims declined by 2,000 to 215,000 in the week to July 4, compared to market estimates of 218,000.
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HomeIndustriesFood/Beverages/TobaccoEarnings ResultsEarnings ResultsBeverage and snack giant’s stock fell as an earnings beat didn’t prompt an increase in the full-year outlookJuly 9, 2026, 7:57 a.m. ET
PepsiCo's stock was set to fall as the company's North America business lagged, but strength in international business led to an earnings beat. Photo: Getty ImagesShares of PepsiCo fell in early Thursday trading after the beverage and snack giant’s fiscal second-quarter profit and revenue beat expectations — but didn’t prompt an increase in the full-year outlook.
And while the international business showed strong growth, the North America volume in the snacks business was flat despite a second consecutive quarter of price cuts — and the beverages business remained a problem.
PepsiCo (PEP - Free Report) came out with quarterly earnings of $2.2 per share, beating the Zacks Consensus Estimate of $2.19 per share. This compares to earnings of $2.12 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +0.46%. A quarter ago, it was expected that this food and beverage company would post earnings of $1.54 per share when it actually produced earnings of $1.61, delivering a surprise of +4.55%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
PepsiCo, which belongs to the Zacks Beverages - Soft drinks industry, posted revenues of $24.18 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.32%. This compares to year-ago revenues of $22.73 billion. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
PepsiCo shares have lost about 0.7% since the beginning of the year versus the S&P 500's gain of 9.3%.
What's Next for PepsiCo?While PepsiCo has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for PepsiCo was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.43 on $24.97 billion in revenues for the coming quarter and $8.62 on $98.75 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Beverages - Soft drinks is currently in the top 44% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Primo Brands (PRMB - Free Report) , another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 5.
This maker of pure-play water solutions is expected to post quarterly earnings of $0.35 per share in its upcoming report, which represents a year-over-year change of -2.8%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Primo Brands' revenues are expected to be $1.76 billion, up 1.7% from the year-ago quarter.
With PepsiCo (NASDAQ:PEP | PEP Price Prediction) set to report Q2 2026 earnings before the market opens on July 9, 2026, investors are asking whether to buy the beverage and snacks giant ahead of the earnings report.
Our 24/7 Wall St. price target for PepsiCo is $171.20, implying 18.09% upside from $144.98. Our recommendation is a buy, with a high confidence (90%) reading on the model.
Metric Value Current Price $144.98 24/7 Wall St. Price Target $171.20 Upside 18.09% Recommendation BUY Confidence 90% PepsiCo Heads Into Earnings on a Hot Streak PepsiCo has quietly rebuilt momentum. Shares are up 7.08% in the past week, 2.98% year to date, and 12.09% over one year, sitting just 2% below the 52-week high of $168.19.
Q1 2026 delivered core EPS of $1.61 versus $1.5442 expected on revenue of $19.443B, with operating margin expanding 210 basis points to 16.5%. International segments carried the quarter, with EMEA revenue up 18% and Asia Pacific Foods core operating profit up 35%. Polymarket traders are pricing in a 91% probability of an earnings beat on Thursday.
Why Bulls See a Breakout to $178+ Our bull-case scenario projects PepsiCo reaching $178.45 over the next twelve months, a 23.09% total return. The thesis rests on continued international acceleration, margin expansion from record productivity savings, and successful restaging of Pepsi, Lay’s, Doritos, Gatorade, and the recently acquired poppi brand.
Management reaffirmed FY2026 guidance for 2-4% organic revenue growth and 4-6% core constant-currency EPS growth. The 54th consecutive dividend increase to $5.92 annualized and a fresh $10B buyback authorization through Feb 28, 2030 underline the capital-return story.
Of 24 analysts, 4 rate PEP Strong Buy and 4 Buy, with the Street’s $165.55 average target already above the current quote.
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The Risks Worth Watching The bear case gets PepsiCo to $154.37, a still-positive 6.48% return. The biggest overhang is North America convenient foods, where PFNA organic revenue has been flat to negative and US consumers remain squeezed. Tariff-driven commodity costs, FX volatility, and further brand impairments (Rockstar and Be & Cheery took $1.86B in Q2 2025) sit on the risk ledger.
Bulls would counter that FY2025 GAAP weakness reflected non-cash impairments, not core deterioration, and that Q1 2026 net income surged 84.24% YoY as those pressures normalized. Prediction markets see organic growth clustering in the 2%-3% range with 95.3% probability, so a hot upside surprise on Thursday looks unlikely.
Bottom Line on PepsiCo My verdict is a buy with 90% confidence and a 24/7 Wall St. price target of $171.20. The scale tips on international momentum, margin expansion, and a dividend aristocrat pedigree backing a 3.95% yield.
The bull thesis strengthens if Thursday’s report confirms convenient foods volume recovery and margin gains hold. The setup weakens if North America volumes turn negative again or management softens FY2026 guidance. With shares still 14% below Wall Street’s $165.55 consensus, the risk/reward tilts favorably.
Looking further ahead, our model projects the following trajectory, assuming PepsiCo executes on its 2-4% organic growth framework and 4-6% EPS growth guidance.
Year 24/7 Wall St. Price Target 2026 $154.64 2027 $171.20 2028 $193.68 2029 $211.82 2030 $226.99 These projections assume PepsiCo continues restaging global brands and expanding international margins. Significant upside or downside could result from tariff resolution, poppi’s contribution to the beverage portfolio, or a sharper-than-expected US consumer downturn.
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