Analysts Set Expectations for PepsiCo FY2026 Earnings

Key Points

• FY2026 outlook: Zacks projects EPS of $8.59 (vs. consensus $8.63) and PepsiCo's own FY2026 guidance is $8.465–$8.628 after a quarter where EPS of $1.61 beat estimates and revenue rose 8.5% year‑over‑year.
• Capital returns: The board authorized a $10 billion share repurchase (about 4.7% of shares) and the company pays an annualized dividend of $5.69 for a ~3.6% yield with a dividend payout ratio near 89%.
• Mixed analyst views and company catalysts: Analysts average a "Hold" rating with a $170.26 price target, while recent developments include a 10‑year renewable energy PPA and electric truck rollout as positives but a product recall in South Africa and a consumer lawsuit as notable negatives.

PepsiCo, Inc. (NASDAQ:PEP - Free Report) - Zacks Research issued their FY2026 EPS estimates for shares of PepsiCo in a research note issued to investors on Thursday, April 30th. Zacks Research analyst Team expects that the company will post earnings per share of $8.59 for the year. The consensus estimate for PepsiCo's current full-year earnings is $8.63 per share.

Other analysts have also issued research reports about the stock. TD Cowen raised their target price on shares of PepsiCo from $162.00 to $165.00 and gave the company a "hold" rating in a research report on Friday, February 20th. Morgan Stanley raised their target price on shares of PepsiCo from $165.00 to $180.00 and gave the company an "equal weight" rating in a research report on Wednesday, February 4th. Rothschild & Co Redburn raised their target price on shares of PepsiCo from $120.00 to $130.00 and gave the company a "sell" rating in a research report on Tuesday, February 10th. UBS Group cut their target price on shares of PepsiCo from $190.00 to $186.00 and set a "buy" rating on the stock in a research report on Tuesday, April 7th. Finally, HSBC raised their target price on shares of PepsiCo from $175.00 to $176.00 and gave the company a "hold" rating in a research report on Friday, April 17th. Eight investment analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average price target of $170.26.

PepsiCo Stock Performance

Shares of PepsiCo stock opened at $157.39 on Monday. PepsiCo has a fifty-two week low of $127.60 and a fifty-two week high of $171.48. The company has a debt-to-equity ratio of 1.98, a current ratio of 0.90 and a quick ratio of 0.72. The firm has a market capitalization of $215.11 billion, a P/E ratio of 24.71, a P/E/G ratio of 2.88 and a beta of 0.38. The company's 50 day moving average price is $157.96 and its two-hundred day moving average price is $152.43.

PepsiCo (NASDAQ:PEP - Get Free Report) last posted its quarterly earnings results on Thursday, April 16th. The company reported $1.61 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.55 by $0.06. The business had revenue of $19.44 billion for the quarter, compared to analyst estimates of $18.89 billion. PepsiCo had a net margin of 9.15% and a return on equity of 56.61%. The firm's revenue for the quarter was up 8.5% on a year-over-year basis. During the same quarter last year, the business posted $1.48 EPS. PepsiCo has set its FY 2026 guidance at 8.465-8.628 EPS.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the business. Captrust Financial Advisors raised its position in shares of PepsiCo by 3.6% in the third quarter. Captrust Financial Advisors now owns 554,798 shares of the company's stock valued at $77,916,000 after purchasing an additional 19,218 shares during the period. Murphy Middleton Hinkle & Parker Inc. raised its position in shares of PepsiCo by 622.3% in the fourth quarter. Murphy Middleton Hinkle & Parker Inc. now owns 35,603 shares of the company's stock valued at $5,110,000 after purchasing an additional 30,674 shares during the period. Kathmere Capital Management LLC raised its position in shares of PepsiCo by 122.6% in the third quarter. Kathmere Capital Management LLC now owns 20,365 shares of the company's stock valued at $2,860,000 after purchasing an additional 11,217 shares during the period. Mediolanum International Funds Ltd raised its position in shares of PepsiCo by 19.3% in the third quarter. Mediolanum International Funds Ltd now owns 252,916 shares of the company's stock valued at $35,451,000 after purchasing an additional 40,947 shares during the period. Finally, Townsquare Capital LLC raised its position in shares of PepsiCo by 96.5% in the third quarter. Townsquare Capital LLC now owns 40,383 shares of the company's stock valued at $5,671,000 after purchasing an additional 19,829 shares during the period. 73.07% of the stock is currently owned by institutional investors and hedge funds.

PepsiCo announced that its board has initiated a stock repurchase plan on Tuesday, February 3rd that allows the company to repurchase $10.00 billion in outstanding shares. This repurchase authorization allows the company to buy up to 4.7% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company's leadership believes its stock is undervalued.

PepsiCo Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, March 31st. Shareholders of record on Friday, March 6th were issued a $1.4225 dividend. This represents a $5.69 dividend on an annualized basis and a yield of 3.6%. The ex-dividend date was Friday, March 6th. PepsiCo's dividend payout ratio (DPR) is presently 89.32%.

Key PepsiCo News

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo signed a 10‑year virtual power purchase agreement with Statkraft to cut ~32,000 metric tons of CO2 annually across Europe — supports sustainability targets and may lower long‑term energy costs. PepsiCo inks 10-year renewable energy deal to cut emissions across Europe
• Positive Sentiment: Zacks Research raised multiple near‑ and medium‑term EPS estimates (including FY2027 and FY2028), signaling improved analyst expectations for profitability. PepsiCo (PEP) analyst note (MarketBeat summary)
• Positive Sentiment: PepsiCo is expanding electrification of distribution with a 50 electric delivery truck rollout in Fresno — incremental cost and emissions benefits and supports supply‑chain decarbonization narrative. Fresno PepsiCo rolls out 50 electric delivery trucks, aims to reduce emissions
• Positive Sentiment: Company announced a 2026 growth plan focused on cost cuts and product innovation — potential margin improvement and revenue growth tailwinds if execution holds. PepsiCo sets 2026 growth plan with cost cuts, innovation push
• Neutral Sentiment: Analyst and media pieces comparing Coca‑Cola vs. PepsiCo provide context for relative valuation and may drive short‑term trading but contain no new company‑specific catalysts. Coca-Cola vs. PepsiCo: Which Stock Is the Better Buy?
• Neutral Sentiment: PepsiCo plans to end its bottling/distribution partnership with Royal Unibrew in parts of Northern Europe by 2028 — strategic operational change that will require new local arrangements (potential short‑term costs, long‑term control). PepsiCo Bottling Shift In Northern Europe And What It Means For Valuation
• Negative Sentiment: PepsiCo apologised to South African consumers and pulled its ProNutro formula from shelves after a backlash — immediate reputational damage, potential regulatory scrutiny and lost sales in the market; this appears to be the most direct near‑term negative catalyst. PepsiCo apologises to South Africans and pulls ProNutro from shelves over formula backlash
• Negative Sentiment: PepsiCo is named in a consumer lawsuit alleging ultraprocessed foods can be addictive — legal risk and reputational headlines that could pressure longer‑term consumer perception and marketing costs. Food giants hit with consumer lawsuit calling ultraprocessed ingredients addictive
• Negative Sentiment: Erste Group trimmed FY2026/27 EPS estimates slightly — a small downward analyst revision that marginally reduces near‑term analyst sentiment. Erste Group Bank analyst note (MarketBeat summary)

About PepsiCo

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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