PepsiCo FY2026 EPS Estimate Decreased by Erste Group Bank

PepsiCo, Inc. (NASDAQ:PEP - Free Report) - Equities researchers at Erste Group Bank decreased their FY2026 earnings per share estimates for shares of PepsiCo in a research note issued to investors on Monday, April 27th. Erste Group Bank analyst S. Lingnau now forecasts that the company will post earnings per share of $8.60 for the year, down from their prior estimate of $8.62. The consensus estimate for PepsiCo's current full-year earnings is $8.63 per share. Erste Group Bank also issued estimates for PepsiCo's FY2027 earnings at $9.15 EPS.

Other equities research analysts have also issued reports about the stock. Barclays lifted their price target on shares of PepsiCo from $154.00 to $158.00 and gave the company an "equal weight" rating in a report on Monday, April 20th. Morgan Stanley raised their target price on shares of PepsiCo from $165.00 to $180.00 and gave the company an "equal weight" rating in a research report on Wednesday, February 4th. TD Cowen boosted their target price on shares of PepsiCo from $162.00 to $165.00 and gave the stock a "hold" rating in a research note on Friday, February 20th. The Goldman Sachs Group upped their price target on shares of PepsiCo from $180.00 to $183.00 and gave the stock a "buy" rating in a report on Friday, April 17th. Finally, Weiss Ratings reissued a "hold (c)" rating on shares of PepsiCo in a report on Wednesday, April 8th. Eight investment analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company has an average rating of "Hold" and an average price target of $170.26.

PepsiCo Stock Down 0.6%

Shares of NASDAQ PEP opened at $155.29 on Thursday. The company has a market cap of $212.25 billion, a price-to-earnings ratio of 24.38, a PEG ratio of 2.82 and a beta of 0.40. The company has a current ratio of 0.90, a quick ratio of 0.72 and a debt-to-equity ratio of 1.98. PepsiCo has a 12 month low of $127.60 and a 12 month high of $171.48. The stock has a 50-day moving average price of $158.08 and a two-hundred day moving average price of $152.36.

PepsiCo (NASDAQ:PEP - Get Free Report) last posted its quarterly earnings results on Thursday, April 16th. The company reported $1.61 EPS for the quarter, topping analysts' consensus estimates of $1.55 by $0.06. The company had revenue of $19.44 billion during the quarter, compared to analysts' expectations of $18.89 billion. PepsiCo had a return on equity of 56.61% and a net margin of 9.15%.PepsiCo's revenue was up 8.5% on a year-over-year basis. During the same quarter in the previous year, the firm earned $1.48 EPS. PepsiCo has set its FY 2026 guidance at 8.465-8.628 EPS.

Institutional Investors Weigh In On PepsiCo

A number of institutional investors have recently modified their holdings of the company. Captrust Financial Advisors boosted its holdings in PepsiCo by 3.6% in the third quarter. Captrust Financial Advisors now owns 554,798 shares of the company's stock worth $77,916,000 after acquiring an additional 19,218 shares in the last quarter. Murphy Middleton Hinkle & Parker Inc. raised its position in shares of PepsiCo by 622.3% during the fourth quarter. Murphy Middleton Hinkle & Parker Inc. now owns 35,603 shares of the company's stock worth $5,110,000 after purchasing an additional 30,674 shares during the period. Kathmere Capital Management LLC lifted its holdings in shares of PepsiCo by 122.6% in the 3rd quarter. Kathmere Capital Management LLC now owns 20,365 shares of the company's stock worth $2,860,000 after purchasing an additional 11,217 shares in the last quarter. Mediolanum International Funds Ltd grew its position in PepsiCo by 19.3% in the 3rd quarter. Mediolanum International Funds Ltd now owns 252,916 shares of the company's stock valued at $35,451,000 after purchasing an additional 40,947 shares during the period. Finally, Townsquare Capital LLC grew its position in PepsiCo by 96.5% in the 3rd quarter. Townsquare Capital LLC now owns 40,383 shares of the company's stock valued at $5,671,000 after purchasing an additional 19,829 shares during the period. 73.07% of the stock is owned by institutional investors.

PepsiCo declared that its board has authorized a stock buyback program on Tuesday, February 3rd that allows the company to buyback $10.00 billion in outstanding shares. This buyback authorization allows the company to reacquire up to 4.7% of its stock through open market purchases. Stock buyback programs are usually an indication that the company's management believes its stock is undervalued.

PepsiCo Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, March 31st. Shareholders of record on Friday, March 6th were issued a dividend of $1.4225 per share. The ex-dividend date was Friday, March 6th. This represents a $5.69 annualized dividend and a yield of 3.7%. PepsiCo's dividend payout ratio (DPR) is presently 89.32%.

PepsiCo News Summary

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo joined Givaudan, Smurfit WestRock and Statkraft in a 10‑year virtual power purchase agreement tied to a Spanish wind asset — a meaningful ESG win that reduces long‑term energy cost/price volatility risk and supports sustainability goals that matter to large corporate customers and investors. PepsiCo, Givaudan, Smurfit WestRock and Statkraft Sign 10‑Year Renewable Energy Agreement to Advance Value Chain Decarbonization Across Europe
• Positive Sentiment: PepsiCo was named among “dividend kings” — reinforcing its reputation for steady cash return and making the stock attractive to income and defensive investors. RPM, J&J, PepsiCo named among elite dividend kings
• Positive Sentiment: Marketing/retail strategy: PepsiCo’s CMO highlighted Walmart Connect as a “launch media” channel — signaling sharper retail‑media execution that can improve new product rollouts and in‑store mix. This can help combat promotional pressure and improve ROI on advertising. PepsiCo CMO: Walmart Connect Turns Retail Media Into 'Launch Media'
• Positive Sentiment: Brand/product activity: PepsiCo launched a refreshed global Mirinda “Smile Please” platform — a consumer marketing push that can help drive soda category interest and promotional momentum in select markets. PepsiCo: Mirinda launches a "Smile Please" platform globally
• Positive Sentiment: Sell‑side / buy‑side view: A recent Seeking Alpha piece and other investor commentary argue PepsiCo’s valuation still offers upside given cash generation and stable dividend — a supportive narrative for investors looking past near‑term softness. PepsiCo: Even At A Lower Multiple, The Upside Is Hard To Ignore
• Negative Sentiment: Competitive pressure: Coca‑Cola’s strong Q1 print and upbeat organic sales commentary have pushed KO shares higher, increasing investor rotation risk away from PepsiCo as markets favor the stronger recent beat and faster‑growing categories. That external momentum appears to be weighing on PEP today. Coca‑Cola Positioned to Outperform Peers in Organic Sales Growth, Morgan Stanley Says
• Negative Sentiment: Category shift and “dirty soda” trend: Coverage shows Coke and Pepsi chasing premium/indulgent innovations (e.g., dirty sodas) and Coca‑Cola is leaning more on faster‑growing categories (water, sports drinks, coffee/tea). This intensifying competition and shifting mix can pressure PepsiCo’s North America food & beverage volumes and margins in the near term. 'Dirty soda' is going mainstream. Coke and Pepsi are trying to cash in.
• Negative Sentiment: Near‑term consumer pressure: Coverage notes PepsiCo’s North American food segment remains under pressure from inflation‑weary consumers — a reminder that top‑line and mix risks persist despite long‑term strengths. PepsiCo (PEP) Navigates Consumer Pressure with Stable Sales and Dividend Growth

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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