PepsiCo Stock Earnings Estimates Decreased by Zacks Research

Key Points

• Zacks Research lowered PepsiCo’s FY2026 EPS estimate to $8.40 from $8.56, roughly in line with the $8.41 analyst consensus, while projecting FY2027 EPS of $8.61 and FY2028 EPS of $9.20.
• PepsiCo recently beat quarterly expectations, reporting $2.34 in EPS versus $2.29 expected and revenue of $25.27 billion versus $24.95 billion, with revenue up 5.6% year over year.
• Investor sentiment remains cautious: the stock has a consensus “Hold” rating and an average price target of $145.50, while PepsiCo faces setbacks including KFC’s planned switch to Coca-Cola beverages and elevated debt.

PepsiCo, Inc. (NASDAQ:PEP - Free Report) - Analysts at Zacks Research cut their FY2026 earnings per share estimates for PepsiCo in a research note issued on Friday, October 16th. Zacks Research analyst Team now forecasts that the company will post earnings of $8.40 per share for the year, down from their prior estimate of $8.56. The consensus estimate for PepsiCo's current full-year earnings is $8.41 per share. Zacks Research also issued estimates for PepsiCo's Q4 2026 earnings at $2.25 EPS, Q1 2027 earnings at $1.62 EPS, Q2 2027 earnings at $2.25 EPS, Q3 2027 earnings at $2.40 EPS, Q4 2027 earnings at $2.33 EPS, FY2027 earnings at $8.61 EPS, Q1 2028 earnings at $1.71 EPS, Q2 2028 earnings at $2.40 EPS, Q3 2028 earnings at $2.58 EPS and FY2028 earnings at $9.20 EPS.

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

Other research analysts have also issued research reports about the stock. Deutsche Bank Aktiengesellschaft restated a "hold" rating and issued a $132.00 price target on shares of PepsiCo in a report on Friday, October 9th. BNP Paribas Exane dropped their price objective on shares of PepsiCo from $161.00 to $157.00 and set an "outperform" rating for the company in a research report on Friday, October 9th. Freedom Broker raised shares of PepsiCo from a "hold" rating to a "strong-buy" rating in a research report on Saturday, October 10th. Royal Bank Of Canada cut their target price on shares of PepsiCo from $161.00 to $150.00 and set a "sector perform" rating on the stock in a research note on Tuesday, October 6th. Finally, Bank of America reduced their target price on shares of PepsiCo from $173.00 to $164.00 and set a "neutral" rating on the stock in a report on Thursday, June 25th. One analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, fourteen have issued a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average target price of $145.50.

PepsiCo Price Performance

Shares of NASDAQ:PEP opened at $131.49 on Monday. The stock has a 50-day simple moving average of $134.44 and a 200-day simple moving average of $142.15. The stock has a market capitalization of $179.19 billion, a P/E ratio of 16.52, a PEG ratio of 3.92 and a beta of 0.35. PepsiCo has a 1 year low of $123.47 and a 1 year high of $171.48. The company has a debt-to-equity ratio of 1.90, a quick ratio of 0.76 and a current ratio of 0.94.

Insider Activity at PepsiCo

In related news, EVP David Flavell sold 2,900 shares of the business's stock in a transaction that occurred on Monday, July 27th. The stock was sold at an average price of $139.54, for a total transaction of $404,666.00. Following the 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. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, Director Robert Pohlad purchased 184,646 shares of the firm's stock in a transaction on Wednesday, October 14th. The stock was bought at an average price of $128.28 per share, with a total value of $23,686,388.88. Following the acquisition, the director owned 433,009 shares in the company, valued at $55,546,394.52. This trade represents a 74.35% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Insiders own 0.12% of the company's stock.

Institutional Inflows and Outflows

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

Trending Headlines about PepsiCo

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: Director Robert Pohlad bought 184,646 shares for approximately $23.7 million, increasing his direct ownership by 74.35%. The purchase may signal confidence that PepsiCo’s depressed valuation does not reflect its long-term prospects. SEC insider transaction filing
• Positive Sentiment: Bank of America maintained a Hold rating but raised its price target to $145, suggesting balanced risk-reward and potential upside from current levels. The firm cited strength at Taco Bell as partially offsetting the KFC loss. Bank of America rating update
• Neutral Sentiment: PepsiCo announced a €500 million offering of 3.750% senior notes. The proceeds strengthen funding flexibility, although the transaction adds to the company’s already elevated debt burden. PepsiCo euro-denominated senior notes announcement
• Neutral Sentiment: PepsiCo, its foundation and Feed the Children reported distributing 2 million meals through a school-based hunger-relief program. The announcement supports corporate reputation but is unlikely to materially affect earnings. PepsiCo hunger-relief program announcement
• Negative Sentiment: KFC will replace Pepsi beverages with Coca-Cola products at U.S. restaurants beginning in January 2027, with a full rollout expected by spring. Although KFC represents a limited portion of PepsiCo’s sales, investors view the loss as a setback for its U.S. food-service business and brand presence. Reuters report on KFC switching beverage suppliers
• Negative Sentiment: In India, PepsiCo warned that its Sting and Adrenaline Rush energy drinks could run out within two months after a court declined to suspend restrictions on “energy drink” labeling. The dispute could cause supply disruptions and allow competitors such as Red Bull to gain share. PepsiCo India energy-drink supply report

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.

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 contact@marketbeat.com.