Principal Financial Group Inc. Boosts Stake in PepsiCo, Inc. $PEP

Key Points

• Principal Financial Group raised its PepsiCo stake by 3.5% in Q4 to 1,689,705 shares (about $242.5M), with institutional investors now owning roughly 73.07% of the company as other major holders (Vanguard, State Street, Invesco, Amundi) also adjusted positions.
• PepsiCo beat Q1 expectations—EPS $1.61 vs. $1.55 and revenue $19.44B (up 8.5% YoY)—issued FY2026 guidance of $8.465–$8.628 EPS and the board authorized a $10B share buyback (~4.7% of shares).
• Analysts' consensus is a Hold rating with a $170.26 average target (8 Buys, 11 Holds, 1 Sell), reflecting mixed sentiment despite recent operational and ESG developments.

Principal Financial Group Inc. lifted its position in PepsiCo, Inc. (NASDAQ:PEP - Free Report) by 3.5% in the fourth quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 1,689,705 shares of the company's stock after purchasing an additional 57,129 shares during the quarter. Principal Financial Group Inc. owned approximately 0.12% of PepsiCo worth $242,506,000 at the end of the most recent quarter.

Several other institutional investors also recently added to or reduced their stakes in PEP. Vanguard Group Inc. grew its holdings in shares of PepsiCo by 1.2% during the fourth quarter. Vanguard Group Inc. now owns 138,483,870 shares of the company's stock worth $19,875,205,000 after buying an additional 1,612,652 shares during the last quarter. State Street Corp lifted its position in PepsiCo by 1.8% during the 3rd quarter. State Street Corp now owns 59,499,819 shares of the company's stock worth $8,356,155,000 after acquiring an additional 1,079,970 shares during the period. Invesco Ltd. grew its stake in shares of PepsiCo by 7.6% in the 3rd quarter. Invesco Ltd. now owns 13,617,747 shares of the company's stock valued at $1,912,476,000 after purchasing an additional 958,701 shares during the last quarter. Legal & General Group Plc increased its holdings in shares of PepsiCo by 1.3% in the third quarter. Legal & General Group Plc now owns 8,902,664 shares of the company's stock valued at $1,250,290,000 after purchasing an additional 118,286 shares during the period. Finally, Amundi increased its holdings in shares of PepsiCo by 30.0% in the third quarter. Amundi now owns 8,641,588 shares of the company's stock valued at $1,207,230,000 after purchasing an additional 1,995,362 shares during the period. Institutional investors and hedge funds own 73.07% of the company's stock.

Wall Street Analysts Forecast Growth

Several equities research analysts recently weighed in on the company. TD Cowen increased their price target on PepsiCo from $162.00 to $165.00 and gave the stock a "hold" rating in a report on Friday, February 20th. Wall Street Zen downgraded shares of PepsiCo from a "buy" rating to a "hold" rating in a research report on Saturday, April 18th. Evercore raised their target price on shares of PepsiCo from $165.00 to $170.00 in a research note on Friday, April 17th. HSBC boosted their price target on shares of PepsiCo from $175.00 to $176.00 and gave the stock a "hold" rating in a research note on Friday, April 17th. Finally, Argus raised PepsiCo to a "hold" rating in a report on Tuesday, February 17th. Eight research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company has an average rating of "Hold" and a consensus target price of $170.26.

Key Stories Impacting PepsiCo

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: Competitive Q1 showing vs. Coca‑Cola — analysis notes PepsiCo leaned on snacks, international resilience and an “affordability reset” to revive North American volumes, widening a gap with Coca‑Cola and supporting revenue diversification. PepsiCo vs Coca-Cola: A Decade-Long Fight for Dominance
• Positive Sentiment: Productivity and cost savings seen as a hedge against inflation — Zacks highlights management’s multi-pronged productivity program (cost efficiencies, supply-chain optimization, disciplined overhead) that supports margins and EPS guidance. Can Productivity Savings Shield PepsiCo From Inflation Pressures?
• Positive Sentiment: New low‑carbon fertilizer attribute agreement with TalusAg — a sustainability/supply‑chain move that may reduce long‑term input‑cost and ESG risk; it’s PepsiCo’s first executed transaction of this type. PepsiCo and TalusAg Announce Low-carbon Ammonia Attribute Agreement
• Positive Sentiment: Brand and product innovation — Gatorade’s multi‑year “Body of Science” research and new product launches (Tostitos refrigerated dips, Pure Leaf Mental Focus sparkling teas, Quaker protein SKUs) support long‑term growth and portfolio expansion. Gatorade Unveils "Body of Science" PepsiCo Balances Human Rights Scrutiny With Health Focused Product Expansion
• Positive Sentiment: Partnerships boosting adjacent categories — coverage on Celsius notes Pepsi partnerships (distribution/marketing) that help expand energy‑category exposure without heavy capex. This supports top‑line optionality. Will Celsius Holdings Stock Extend Its Earnings Beat Streak in Q1?
• Positive Sentiment: Investor income appeal — recent dividend‑focused writeups list PepsiCo among steady dividend names, supporting demand from income investors. 10 Years, Zero Regrets: The Dividend Stocks I Keep Buying
• Neutral Sentiment: Retail/market lists and “best consumer staples” features — inclusion in consumer‑staples roundups can provide marketing lift but usually has limited immediate price impact. Best Consumer Staples Stocks to Buy in 2026
• Neutral Sentiment: Broader negative-themed roundup that mentions “unpopular stocks” — unless the piece singles out PepsiCo with fresh downgrades, these lists tend to have limited direct impact. 3 Unpopular Stocks We Keep Off Our Radar
• Negative Sentiment: Shareholder proposal on human‑rights reporting — a governance/ESG proposal seeking more detailed effectiveness reporting is gaining attention ahead of the annual meeting; could raise compliance and disclosure expectations and pressure sentiment if voting outcomes are contentious. PepsiCo Balances Human Rights Scrutiny With Health Focused Product Expansion

PepsiCo Price Performance

Shares of NASDAQ PEP opened at $155.04 on Wednesday. The company has a debt-to-equity ratio of 1.98, a quick ratio of 0.72 and a current ratio of 0.90. PepsiCo, Inc. has a one year low of $127.60 and a one year high of $171.48. The firm has a market capitalization of $211.90 billion, a P/E ratio of 24.34, a PEG ratio of 2.83 and a beta of 0.38. The company's fifty day moving average is $157.76 and its two-hundred day moving average is $152.46.

PepsiCo (NASDAQ:PEP - Get Free Report) last announced its quarterly earnings results on Thursday, April 16th. The company reported $1.61 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.55 by $0.06. The business had revenue of $19.44 billion during the quarter, compared to the consensus estimate of $18.89 billion. PepsiCo had a net margin of 9.15% and a return on equity of 56.61%. The business's revenue was up 8.5% compared to the same quarter last year. During the same quarter last year, the firm posted $1.48 EPS. PepsiCo has set its FY 2026 guidance at 8.465-8.628 EPS. Analysts forecast that PepsiCo, Inc. will post 8.63 EPS for the current fiscal year.

PepsiCo declared that its Board of Directors has authorized a stock buyback plan on Tuesday, February 3rd that allows the company to repurchase $10.00 billion in shares. This repurchase authorization allows the company to repurchase up to 4.7% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company's board believes its stock is undervalued.

PepsiCo Company Profile

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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