FY2026 EPS Estimates for PepsiCo Decreased by Analyst

Key Points

• Erste Group Bank lowered its FY2026 EPS estimate for PepsiCo to $8.55 from $8.60, slightly below the current consensus of $8.58. The firm also projected FY2027 earnings of $9.02 per share.
• PepsiCo’s latest quarterly results topped expectations, with EPS of $2.20 versus $2.19 expected and revenue of $24.18 billion versus $23.95 billion anticipated. The company also reaffirmed FY2026 guidance of $8.55 to $8.71 EPS.
• The stock has drawn a Hold consensus from analysts, with 7 Buy ratings, 12 Hold ratings, and 1 Sell rating. PepsiCo also raised its quarterly dividend to $1.48 per share, implying a 4.2% annualized yield.

PepsiCo, Inc. (NASDAQ:PEP - Free Report) - Analysts at Erste Group Bank cut their FY2026 earnings estimates for shares of PepsiCo in a research report issued on Wednesday, July 15th. Erste Group Bank analyst S. Lingnau now expects that the company will post earnings of $8.55 per share for the year, down from their prior forecast of $8.60. The consensus estimate for PepsiCo's current full-year earnings is $8.58 per share. Erste Group Bank also issued estimates for PepsiCo's FY2027 earnings at $9.02 EPS.

PepsiCo (NASDAQ:PEP - Get Free Report) last released its quarterly earnings results on Thursday, July 9th. The company reported $2.20 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.19 by $0.01. PepsiCo had a net margin of 10.78% and a return on equity of 54.63%. The firm had revenue of $24.18 billion during the quarter, compared to the consensus estimate of $23.95 billion. During the same quarter last year, the firm earned $0.92 earnings per share. The company's revenue for the quarter was up 6.4% on a year-over-year basis. PepsiCo has set its FY 2026 guidance at 8.550-8.710 EPS.

A number of other equities analysts also recently issued reports on the company. Wall Street Zen downgraded PepsiCo from a "buy" rating to a "hold" rating in a research report on Saturday, April 18th. Evercore set a $150.00 target price on shares of PepsiCo in a research report on Thursday, July 9th. Royal Bank Of Canada lowered their price target on shares of PepsiCo from $163.00 to $161.00 and set a "sector perform" rating for the company in a report on Friday, July 10th. Weiss Ratings reiterated a "hold (c)" rating on shares of PepsiCo in a research report on Monday, July 6th. Finally, TD Cowen dropped their target price on shares of PepsiCo from $150.00 to $145.00 and set a "hold" rating on the stock in a report on Friday, July 10th. Seven research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average price target of $157.70.

PepsiCo Stock Up 3.0%

Shares of PEP opened at $139.43 on Friday. The stock's 50-day moving average price is $143.88 and its two-hundred day moving average price is $151.31. PepsiCo has a 12 month low of $134.65 and a 12 month high of $171.48. The company has a market capitalization of $190.31 billion, a PE ratio of 18.27, a PEG ratio of 2.97 and a beta of 0.36. The company has a current ratio of 0.93, a quick ratio of 0.74 and a debt-to-equity ratio of 1.91.

PepsiCo Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, June 30th. Shareholders of record on Friday, June 5th were issued a $1.48 dividend. The ex-dividend date was Friday, June 5th. This is a positive change from PepsiCo's previous quarterly dividend of $1.42. This represents a $5.92 dividend on an annualized basis and a yield of 4.2%. PepsiCo's dividend payout ratio is 77.59%.

Institutional Trading of PepsiCo

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Evergreen Advisors LLC acquired a new position in shares of PepsiCo during the first quarter worth approximately $25,000. Gunpowder Capital Management LLC dba Oliver Wealth Management acquired a new position in PepsiCo during the fourth quarter worth $26,000. Swiss RE Ltd. bought a new position in shares of PepsiCo in the fourth quarter valued at $28,000. MH & Associates Securities Management Corp ADV acquired a new position in shares of PepsiCo during the fourth quarter valued at about $29,000. Finally, Imprint Wealth LLC acquired a new position in shares of PepsiCo during the third quarter valued at about $31,000. 73.07% of the stock is owned by institutional investors.

PepsiCo News Roundup

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo India said first-half growth was robust and announced plans to build a new food manufacturing facility in Tamil Nadu, signaling continued expansion in a key international market. PepsiCo India sees robust growth in H1, will set up food manufacturing facility in Tamil Nadu
• Positive Sentiment: Management sounded cautiously optimistic about the second half, citing strong demand and saying PepsiCo is still maintaining its full-year outlook despite weather-related uncertainty and higher gas prices. PepsiCo cautiously optimistic on H2 amid robust demand, weather uncertainties: CEO
• Positive Sentiment: PepsiCo highlighted progress on sustainability, saying 70% of ingredients now come from sustainable sources and raising its target to 90% by 2030, which may support long-term brand and supply-chain positioning. PepsiCo (PEP) Pushes Sustainable Sourcing To 70% With A 90% Goal By 2030
• Neutral Sentiment: PepsiCo received continued attention from investors and analysts as a dividend and value stock, including a Seeking Alpha piece arguing for double-digit total return potential. PepsiCo: Dividend King With Double-Digit Total Return Potential
• Negative Sentiment: A Yahoo Finance report said U.S. grocery unit sales are falling, which is squeezing PepsiCo and other food companies and reinforces concerns about volume weakness in core markets. U.S. grocery unit sales falling, squeezing PepsiCo and food companies
• Negative Sentiment: Another report noted PepsiCo’s stock is at a 1-year low, reflecting broader investor concerns about slowing growth and the company’s recent mixed quarter. Why PepsiCo's stock is at a 1-year low
• Negative Sentiment: RBC Capital reiterated a Sector Perform rating and trimmed its price target, suggesting analysts remain cautious after PepsiCo’s mixed results. RBC Capital Keeps Sector Perform Rating on PepsiCo (PEP)

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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