PepsiCo (NASDAQ:PEP) Announces Quarterly Earnings Results

Key Points

• PepsiCo exceeded quarterly expectations: Adjusted EPS was $2.34 versus the $2.29 consensus, while revenue rose 5.6% year over year to $25.27 billion.
• Full-year outlook is mixed: PepsiCo raised fiscal 2026 revenue guidance to approximately $99.6 billion but lowered EPS guidance to $8.344–$8.425, below analysts’ $8.55 estimate, citing profitability and margin pressure.
• The company maintains a quarterly dividend of $1.48, equivalent to $5.92 annually and a 4.8% yield, but shares fell 1.6% amid concerns about weak North American snack demand, inflation, GLP-1 drugs and activist-investor pressure.

PepsiCo (NASDAQ:PEP - Get Free Report) released its quarterly earnings data on Wednesday. The company reported $2.34 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.29 by $0.05, FiscalAI reports. PepsiCo had a net margin of 10.78% and a return on equity of 54.63%. The business had revenue of $25.27 billion during the quarter, compared to analysts' expectations of $24.95 billion.

PepsiCo Trading Down 1.6%

Shares of PEP stock opened at $123.73 on Thursday. The company's fifty day simple moving average is $135.99 and its two-hundred day simple moving average is $143.32. The stock has a market capitalization of $168.88 billion, a price-to-earnings ratio of 16.22, a PEG ratio of 2.85 and a beta of 0.35. 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 has a 1 year low of $123.47 and a 1 year high of $171.48.

PepsiCo Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, September 30th. Investors of record on Friday, September 4th were paid a $1.48 dividend. This represents a $5.92 dividend on an annualized basis and a yield of 4.8%. The ex-dividend date was Friday, September 4th. PepsiCo's payout ratio is currently 77.59%.

Key PepsiCo News

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo exceeded quarterly expectations: revenue rose 5.6% year over year to $25.27 billion, while adjusted EPS of $2.34 topped the $2.29 consensus estimate. Reported diluted EPS increased to $2.23 from $1.90, and operating profit climbed 19% to $4.26 billion. PepsiCo earnings top estimates, but company lowers full-year forecast
• Positive Sentiment: Management projects approximately 6% fiscal 2026 revenue growth and plans to return $8.9 billion to shareholders through dividends and stock repurchases, supporting PepsiCo’s appeal to income-focused investors. PepsiCo Q3 Revenue Rises 5.6% to $25.3 Billion
• Neutral Sentiment: Carlsberg’s expansion into Georgia and Armenia increases PepsiCo’s bottling reach to 17 markets across Eastern Europe and Central Asia, potentially improving international distribution but with limited near-term earnings impact. PepsiCo Expanded Its Bottling Reach To 17 Markets
• Negative Sentiment: PepsiCo lowered fiscal 2026 EPS guidance to $8.344–$8.425, below the $8.55 analyst consensus, even as it raised revenue guidance to $99.6 billion from a $98.9 billion consensus. The reduction signals margin and profitability pressure. PepsiCo trims outlook as sales and EPS rise in quarter
• Negative Sentiment: Investors remain concerned about weak North American snack demand, cost inflation and the longer-term impact of GLP-1 weight-loss drugs on salty snacks and sugary beverages. PepsiCo is also under pressure to deliver growth and margin targets associated with activist investor Elliott Investment Management. PepsiCo running out of time to meet Elliott-inspired targets
• Negative Sentiment: Royal Bank of Canada cut its price target to $150 and maintained a “sector perform” rating, while PepsiCo also recalled roughly 122,000 cases of Gatorade over undeclared dyes—an additional, though likely manageable, brand and execution risk. PepsiCo issues voluntary Gatorade recall

Analyst Ratings Changes

PEP has been the subject of several research reports. Royal Bank Of Canada dropped their target price on PepsiCo from $161.00 to $150.00 and set a "sector perform" rating for the company in a research report on Tuesday. Piper Sandler set a $176.00 price objective on PepsiCo in a research note on Thursday, July 9th. Weiss Ratings cut shares of PepsiCo from a "hold (c)" rating to a "hold (c-)" rating in a report on Thursday, September 24th. Sanford C. Bernstein set a $134.00 price target on shares of PepsiCo in a research report on Friday, July 10th. Finally, TD Cowen decreased their price objective on PepsiCo from $145.00 to $133.00 and set a "hold" rating for the company in a report on Monday, September 28th. Five equities research analysts have rated the stock with a Buy rating, fourteen have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Hold" and a consensus target price of $150.20.

Insider Activity

In other news, EVP David Flavell sold 2,900 shares of the firm's stock in a transaction that occurred on Monday, July 27th. The shares were sold at an average price of $139.54, for a total value of $404,666.00. Following the completion of the transaction, the executive vice president directly owned 74,825 shares in the company, valued at approximately $10,441,080.50. This trade represents a 3.73% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 0.12% of the company's stock.

PepsiCo Company Profile

PepsiCo, Inc NASDAQ: PEP is a global food and beverage company that develops, manufactures, markets and distributes a broad portfolio of snacks, drinks and convenient foods. Its beverage brands include Pepsi, Mountain Dew, Gatorade, 7UP in select markets, and bubly, while its food and snack brands include Lay's, Doritos, Cheetos, Tostitos, Fritos, Quaker and Ruffles.

The company's operations include beverage production and distribution, snack foods, convenient meals and nutrition-oriented products.

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