Erste Group Bank Decreases Earnings Estimates for PepsiCo

Key Points

• Erste Group Bank cut PepsiCo’s FY2026 EPS estimate to $8.39 from $8.55, slightly below the $8.41 consensus forecast; it projects FY2027 EPS of $8.60.
• PepsiCo’s latest quarterly results exceeded expectations, with EPS of $2.34 versus $2.29 expected and revenue of $25.27 billion, up 5.6% year over year.
• Analyst sentiment remains cautious, with PepsiCo carrying a consensus “Hold” rating and an average price target of $143.28, while institutional investors own 73.07% of the stock.

PepsiCo, Inc. (NASDAQ:PEP - Free Report) - Erste Group Bank lowered their FY2026 earnings per share estimates for PepsiCo in a research note issued on Wednesday, October 21st. Erste Group Bank analyst S. Lingnau now expects that the company will earn $8.39 per share for the year, down from their previous estimate of $8.55. The consensus estimate for PepsiCo's current full-year earnings is $8.41 per share. Erste Group Bank also issued estimates for PepsiCo's FY2027 earnings at $8.60 EPS.

PepsiCo (NASDAQ:PEP - Get Free Report) last posted its earnings results on Wednesday, October 7th. The company reported $2.34 EPS for the quarter, beating analysts' consensus estimates of $2.29 by $0.05. PepsiCo had a return on equity of 53.08% and a net margin of 11.09%. The company had revenue of $25.27 billion for the quarter, compared to the consensus estimate of $24.95 billion. During the same quarter in the previous year, the business earned $2.29 earnings per share. The company's revenue for the quarter was up 5.6% on a year-over-year basis.

PEP has been the topic of a number of other research reports. BNP Paribas Exane decreased their target price on shares of PepsiCo from $161.00 to $157.00 and set an "outperform" rating on the stock in a research report on Friday, October 9th. TD Cowen dropped their price target on shares of PepsiCo from $145.00 to $133.00 and set a "hold" rating for the company in a research report on Monday, September 28th. Evercore dropped their price target on shares of PepsiCo from $150.00 to $135.00 in a research report on Wednesday, September 30th. Freedom Broker raised shares of PepsiCo from a "hold" rating to a "strong-buy" rating in a research note on Saturday, October 10th. Finally, The Goldman Sachs Group reaffirmed a "buy" rating and set a $165.00 price objective on shares of PepsiCo in a research report on Thursday, October 8th. One equities research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, fourteen have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the company presently has an average rating of "Hold" and a consensus price target of $143.28.

PepsiCo Stock Up 3.1%

Shares of NASDAQ:PEP opened at $138.83 on Friday. The business has a 50-day moving average price of $134.15 and a 200 day moving average price of $141.57. The company has a current ratio of 0.94, a quick ratio of 0.76 and a debt-to-equity ratio of 1.90. The company has a market capitalization of $189.19 billion, a price-to-earnings ratio of 16.02, a PEG ratio of 4.01 and a beta of 0.35. PepsiCo has a 12-month low of $123.47 and a 12-month high of $171.48.

Institutional Investors Weigh In On PepsiCo

Several large investors have recently added to or reduced their stakes in PEP. BlackRock Inc. grew its stake in shares of PepsiCo by 2.1% in the second quarter. BlackRock Inc. now owns 118,281,854 shares of the company's stock worth $16,015,363,000 after acquiring an additional 2,440,377 shares in the last quarter. State Street Corp raised its stake in shares of PepsiCo by 1.7% in the second quarter. State Street Corp now owns 60,406,932 shares of the company's stock valued at $8,179,099,000 after acquiring an additional 987,582 shares in the last quarter. Bank of America Corp DE raised its stake in shares of PepsiCo by 0.6% in the first quarter. Bank of America Corp DE now owns 21,283,701 shares of the company's stock valued at $3,305,146,000 after acquiring an additional 133,325 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its holdings in PepsiCo by 4.9% in the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 11,817,684 shares of the company's stock valued at $1,600,114,000 after purchasing an additional 549,336 shares during the period. Finally, Amundi boosted its holdings in PepsiCo by 16.8% in the first quarter. Amundi now owns 11,444,671 shares of the company's stock valued at $1,777,243,000 after purchasing an additional 1,647,506 shares during the period. 73.07% of the stock is owned by hedge funds and other institutional investors.

Insider Activity

In other PepsiCo news, Director Robert C. Pohlad purchased 184,646 shares of PepsiCo stock in a transaction dated Wednesday, October 14th. The shares were acquired at an average price of $128.28 per share, with a total value of $23,686,388.88. Following the completion of the transaction, the director owned 433,009 shares of the company's stock, valued at $55,546,394.52. This trade represents a 74.35% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, 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 transaction of $404,666.00. Following the completion of the transaction, the executive vice president directly owned 74,825 shares of the company's stock, valued at approximately $10,441,080.50. The trade was a 3.73% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 0.12% of the company's stock.

PepsiCo News Roundup

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: Long-term Taco Bell agreement: PepsiCo renewed its beverage partnership with Taco Bell for 11 years, through 2036, across participating U.S. locations and select international markets. The deal protects distribution for Pepsi, Mountain Dew Baja Blast and future crafted, functional and energy drinks, providing a notable win after KFC recently switched its U.S. beverage supplier to Coca-Cola. Taco Bell and PepsiCo Commit to 11 More Years Together
• Positive Sentiment: Growth initiatives could broaden the portfolio: PepsiCo is expanding Quaker snacks in India and launching Good Warrior protein bars, while its multipack snack business and healthier brands such as Poppi are intended to capture changing consumer preferences. These launches are strategically supportive, though their financial contribution is not yet clear. PepsiCo champions protein with Good Warrior bars
• Neutral Sentiment: Valuation offers some support: Analysts and investors view PepsiCo as a potentially attractive contrarian dividend stock after it traded well below its 52-week high. However, inflation, cautious consumer spending and margin pressure remain important risks, and the company’s high payout and leverage limit flexibility.
• Negative Sentiment: Knoxville bottling-plant closure signals weak beverage demand: PepsiCo is closing its Tennessee facility and eliminating roughly 112–122 manufacturing, maintenance and warehouse positions amid declining soft-drink volumes. The move should reduce costs and align capacity with demand, but it also underscores North American beverage weakness and follows the loss of KFC’s U.S. business to Coca-Cola. PepsiCo shuts Tennessee bottling plant amid sliding soft drink volumes

About PepsiCo

PepsiCo, Inc NASDAQ: PEP is a global food and beverage company whose portfolio includes Pepsi-Cola, Mountain Dew, Gatorade, Lay's, Doritos, Cheetos, Quaker, Tostitos, Fritos, and SodaStream. Its products span carbonated soft drinks, sports and energy beverages, bottled water, juices, convenient foods, snacks, and other packaged food offerings.

The company sells products through retail stores, restaurants, food-service providers, e-commerce platforms, and other distribution channels. PepsiCo serves consumers in North America and international markets across Latin America, Europe, Africa, the Middle East, and Asia-Pacific.

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