PepsiCo (NASDAQ:PEP) Releases FY 2026 Earnings Guidance

Key Points

• PepsiCo lowered FY 2026 EPS guidance to $8.344–$8.425, below the $8.55 analyst consensus, while setting revenue guidance at $99.6 billion, above the $98.9 billion consensus.
• The company’s latest quarter exceeded expectations, with revenue rising 5.6% year over year to $25.27 billion and adjusted EPS of $2.34 topping estimates of $2.29.
• Shares fell 1.6% as investors weighed profitability pressures, weak North American snack demand, cost inflation and longer-term GLP-1 risks; analysts maintain a consensus “Hold” rating with an average price target of $150.20.

PepsiCo (NASDAQ:PEP - Get Free Report) updated its FY 2026 earnings guidance on Thursday. The company provided earnings per share (EPS) guidance of 8.344-8.425 for the period, compared to the consensus estimate of 8.550. The company issued revenue guidance of $99.6 billion-$99.6 billion, compared to the consensus revenue estimate of $98.9 billion.

PepsiCo Trading Down 1.6%

PEP opened at $123.73 on Thursday. The company has a 50-day simple moving average of $135.99 and a 200 day simple moving average of $143.32. PepsiCo has a twelve month low of $123.47 and a twelve month high of $171.48. The company has a quick ratio of 0.74, a current ratio of 0.93 and a debt-to-equity ratio of 1.91. The stock has a market capitalization of $168.88 billion, a price-to-earnings ratio of 16.22, a P/E/G ratio of 2.85 and a beta of 0.35.

PepsiCo (NASDAQ:PEP - Get Free Report) last announced its quarterly earnings data on Wednesday, October 7th. The company reported $2.34 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.29 by $0.05. The business had revenue of $25.27 billion for the quarter, compared to analysts' expectations of $24.95 billion. PepsiCo had a net margin of 10.78% and a return on equity of 54.63%. Analysts predict that PepsiCo will post 8.56 EPS for the current fiscal year.

PepsiCo Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, September 30th. Investors of record on Friday, September 4th were issued a dividend of $1.48 per share. The ex-dividend date of this dividend was Friday, September 4th. This represents a $5.92 annualized dividend and a dividend yield of 4.8%. PepsiCo's dividend payout ratio (DPR) is 77.59%.

Analyst Ratings Changes

PEP has been the subject of a number of analyst reports. Jefferies Financial Group set a $138.00 price objective on PepsiCo in a research report on Tuesday, September 29th. Sanford C. Bernstein set a $134.00 target price on shares of PepsiCo in a research report on Friday, July 10th. Piper Sandler set a $176.00 price target on shares of PepsiCo in a research note on Thursday, July 9th. TD Cowen reduced their target price on PepsiCo from $145.00 to $133.00 and set a "hold" rating for the company in a research note on Monday, September 28th. Finally, Morgan Stanley dropped their price target on PepsiCo from $180.00 to $160.00 and set an "equal weight" rating on the stock in a research note on Friday, July 10th. Five investment analysts have rated the stock with 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 a consensus rating of "Hold" and an average target price of $150.20.

Insider Buying and Selling

In other news, EVP David Flavell sold 2,900 shares of the stock in a transaction dated Monday, July 27th. The shares were sold at an average price of $139.54, for a total value of $404,666.00. Following the completion of the sale, the executive vice president owned 74,825 shares in the company, valued at $10,441,080.50. This represents a 3.73% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Insiders own 0.12% of the company's stock.

Trending Headlines about PepsiCo

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo exceeded quarterly expectations: revenue rose 5.6% year over year to $25.27 billion, while adjusted EPS of $2.34 topped the $2.29 consensus estimate. Reported diluted EPS increased to $2.23 from $1.90, and operating profit climbed 19% to $4.26 billion. PepsiCo earnings top estimates, but company lowers full-year forecast
• Positive Sentiment: Management projects approximately 6% fiscal 2026 revenue growth and plans to return $8.9 billion to shareholders through dividends and stock repurchases, supporting PepsiCo’s appeal to income-focused investors. PepsiCo Q3 Revenue Rises 5.6% to $25.3 Billion
• Neutral Sentiment: Carlsberg’s expansion into Georgia and Armenia increases PepsiCo’s bottling reach to 17 markets across Eastern Europe and Central Asia, potentially improving international distribution but with limited near-term earnings impact. PepsiCo Expanded Its Bottling Reach To 17 Markets
• Negative Sentiment: PepsiCo lowered fiscal 2026 EPS guidance to $8.344–$8.425, below the $8.55 analyst consensus, even as it raised revenue guidance to $99.6 billion from a $98.9 billion consensus. The reduction signals margin and profitability pressure. PepsiCo trims outlook as sales and EPS rise in quarter
• Negative Sentiment: Investors remain concerned about weak North American snack demand, cost inflation and the longer-term impact of GLP-1 weight-loss drugs on salty snacks and sugary beverages. PepsiCo is also under pressure to deliver growth and margin targets associated with activist investor Elliott Investment Management. PepsiCo running out of time to meet Elliott-inspired targets
• Negative Sentiment: Royal Bank of Canada cut its price target to $150 and maintained a “sector perform” rating, while PepsiCo also recalled roughly 122,000 cases of Gatorade over undeclared dyes—an additional, though likely manageable, brand and execution risk. PepsiCo issues voluntary Gatorade recall

PepsiCo Company Profile

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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