PepsiCo Stock Gets Weaker EPS Forecast from Erste Group Bank

Key Points

• Erste Group Bank lowered PepsiCo’s FY2027 EPS forecast to $8.97 from $9.02, though the estimate remains above the broader consensus of $8.40.
• PepsiCo’s latest quarter exceeded expectations, with EPS of $2.34 versus $2.29 expected and revenue of $25.27 billion, up 5.6% year over year. The company issued FY2026 EPS guidance of $8.344–$8.425.
• Investor sentiment remains mixed: analysts maintain a consensus “Hold” rating, while PepsiCo offers a roughly 4.7% dividend yield amid concerns about weak soda sales, cost pressures and challenges integrating its Poppi acquisition.

PepsiCo, Inc. (NASDAQ:PEP - Free Report) - Analysts at Erste Group Bank lowered their FY2027 EPS estimates for PepsiCo in a note issued to investors on Thursday, October 8th. Erste Group Bank analyst S. Lingnau now anticipates that the company will post earnings per share of $8.97 for the year, down from their prior estimate of $9.02. The consensus estimate for PepsiCo's current full-year earnings is $8.40 per share.

PepsiCo (NASDAQ:PEP - Get Free Report) last issued its quarterly earnings results on Thursday, October 8th. The company reported $2.34 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.29 by $0.05. PepsiCo had a net margin of 11.09% and a return on equity of 53.08%. The business had revenue of $25.27 billion during the quarter, compared to analyst estimates of $24.95 billion. During the same quarter in the previous year, the firm earned $2.29 earnings per share. The business's revenue was up 5.6% compared to the same quarter last year. PepsiCo has set its FY 2026 guidance at 8.344-8.425 EPS.

A number of other equities research analysts have also issued reports on the stock. Jefferies Financial Group restated a "hold" rating on shares of PepsiCo in a research note on Thursday. Freedom Broker upgraded PepsiCo from a "hold" rating to a "strong-buy" rating in a research note on Saturday. Deutsche Bank Aktiengesellschaft reiterated a "hold" rating and issued a $132.00 price target on shares of PepsiCo in a research note on Friday. Evercore lowered their price objective on PepsiCo from $150.00 to $135.00 in a report on Wednesday, September 30th. Finally, Weiss Ratings cut PepsiCo from a "hold (c)" rating to a "hold (c-)" rating in a research note on Thursday, September 24th. One equities research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, fourteen have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company has a consensus rating of "Hold" and a consensus price target of $145.50.

PepsiCo Price Performance

Shares of PEP stock opened at $126.68 on Tuesday. The firm has a market cap of $172.63 billion, a P/E ratio of 15.91, a P/E/G ratio of 2.92 and a beta of 0.35. The company has a debt-to-equity ratio of 1.90, a current ratio of 0.94 and a quick ratio of 0.76. PepsiCo has a 1-year low of $123.47 and a 1-year high of $171.48. The firm has a fifty day moving average of $135.22 and a two-hundred day moving average of $142.83.

Institutional Trading of PepsiCo

Several hedge funds have recently made changes to their positions in the stock. Evergreen Advisors LLC bought a new position in PepsiCo during the first quarter valued at about $25,000. Gunpowder Capital Management LLC dba Oliver Wealth Management acquired a new position in PepsiCo in the 4th quarter valued at approximately $26,000. Montgomery Financial Services LLC acquired a new position in PepsiCo in the 2nd quarter valued at approximately $25,000. Networth Advisors LLC lifted its position in shares of PepsiCo by 2,857.1% in the 1st quarter. Networth Advisors LLC now owns 207 shares of the company's stock worth $32,000 after acquiring an additional 200 shares during the period. Finally, Vermillion Wealth Management Inc. lifted its position in shares of PepsiCo by 99.1% in the 1st quarter. Vermillion Wealth Management Inc. now owns 217 shares of the company's stock worth $34,000 after acquiring an additional 108 shares during the period. Institutional investors own 73.07% of the company's stock.

Insider Buying and Selling

In other news, EVP David Flavell sold 2,900 shares of the company'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 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. This represents a 3.73% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. 0.12% of the stock is currently owned by insiders.

PepsiCo Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, September 30th. Shareholders 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 4.7%. The ex-dividend date was Friday, September 4th. PepsiCo's payout ratio is presently 74.37%.

Key Headlines Impacting PepsiCo

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: Freedom Broker upgraded PepsiCo from “hold” to “strong buy,” providing a notable near-term sentiment boost.
• Positive Sentiment: PepsiCo is expanding functional beverages, protein-rich snacks and zero-sugar products to capture wellness demand. The strategy could diversify growth beyond traditional soda and snacks. Can PepsiCo’s Functional Portfolio Capture Wellness Demand?
• Neutral Sentiment: The stock’s lower valuation and roughly 4.7% dividend yield are attracting income-oriented investors, though some analysts argue the shares are not yet inexpensive enough given the company’s growth and margin challenges. PepsiCo Stock: A 4.7% Dividend Yield Makes the Stock Look Cheap
• Neutral Sentiment: Recent quarterly results showed revenue growth and an earnings beat, while euro-denominated bond offerings strengthened liquidity. However, the new debt also adds to leverage and interest-rate exposure.
• Negative Sentiment: PepsiCo lowered estimates for its Poppi acquisition as soda sales weakened, highlighting the difficulty of turning around its North American beverage business. Management is adding functional benefits to Poppi and increasing promotional urgency. PepsiCo Cuts Estimates for Poppi Payout While Soda Sales Slump
• Negative Sentiment: Barclays reduced its price target to $126 and kept an “equal weight” rating, while Goldman Sachs also cut its target because of inflation and cost pressures. PepsiCo additionally faces an Indian court setback over labeling new Sting bottles as an “energy drink.”

About PepsiCo

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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