PepsiCo (NASDAQ:PEP) Issues FY 2026 Earnings Guidance

Key Points

• PepsiCo issued FY‑2026 guidance of EPS $8.465–8.628 (vs. consensus ~$8.62) and revenue $95.8B–$97.7B (below the ~$98.3B Street view), which disappointed investors concerned about margin pressure and slower top‑line growth.
• The company beat Q1 estimates—$1.61 EPS vs. $1.55 expected and $19.44B revenue—with management citing improving North American food volumes and demand uplift from targeted price cuts.
• PepsiCo continues shareholder returns: the board authorized a $10B buyback (up to ~4.7% of shares) and paid a quarterly dividend of $1.4225 (annualized $5.69, yield ~3.7%), though the payout ratio is high (~94.8%).

PepsiCo (NASDAQ:PEP - Get Free Report) issued an update on its FY 2026 earnings guidance on Thursday morning. The company provided EPS guidance of 8.465-8.628 for the period, compared to the consensus EPS estimate of 8.620. The company issued revenue guidance of $95.8 billion-$97.7 billion, compared to the consensus revenue estimate of $98.3 billion.

PepsiCo Price Performance

Shares of NASDAQ:PEP opened at $154.85 on Thursday. The company has a debt-to-equity ratio of 2.06, a quick ratio of 0.67 and a current ratio of 0.85. The firm has a fifty day moving average price of $160.23 and a 200 day moving average price of $151.41. PepsiCo has a fifty-two week low of $127.60 and a fifty-two week high of $171.48. The firm has a market cap of $211.67 billion, a price-to-earnings ratio of 25.81, a P/E/G ratio of 3.01 and a beta of 0.40.

PepsiCo (NASDAQ:PEP - Get Free Report) last released its quarterly earnings data on Wednesday, April 15th. The company reported $1.61 EPS for the quarter, beating the consensus estimate of $1.55 by $0.06. PepsiCo had a net margin of 8.77% and a return on equity of 57.92%. The business had revenue of $19.44 billion during the quarter, compared to analyst estimates of $18.89 billion. As a group, sell-side analysts expect that PepsiCo will post 8.3 earnings per share for the current fiscal year.

PepsiCo Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Tuesday, March 31st. Stockholders of record on Friday, March 6th were paid a $1.4225 dividend. The ex-dividend date of this dividend was Friday, March 6th. This represents a $5.69 annualized dividend and a dividend yield of 3.7%. PepsiCo's dividend payout ratio is currently 94.83%.

PepsiCo announced that its Board of Directors has authorized a stock buyback plan on Tuesday, February 3rd that permits the company to repurchase $10.00 billion in outstanding shares. This repurchase authorization permits the company to buy up to 4.7% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company's management believes its stock is undervalued.

Wall Street Analyst Weigh In

Several research analysts recently commented on PEP shares. Morgan Stanley raised their price target on shares of PepsiCo from $165.00 to $180.00 and gave the stock an "equal weight" rating in a research note on Wednesday, February 4th. Wells Fargo & Company raised their price target on shares of PepsiCo from $154.00 to $165.00 and gave the stock an "equal weight" rating in a research note on Wednesday, February 4th. BNP Paribas Exane set a $191.00 target price on shares of PepsiCo in a research report on Wednesday, February 4th. Deutsche Bank Aktiengesellschaft cut their target price on shares of PepsiCo from $176.00 to $169.00 and set a "buy" rating on the stock in a research report on Monday, March 30th. Finally, TD Cowen raised their target price on shares of PepsiCo from $162.00 to $165.00 and gave the company a "hold" rating in a research report on Friday, February 20th. Eight investment analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the company presently has an average rating of "Hold" and a consensus target price of $168.16.

Trending Headlines about PepsiCo

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: Q1 beat on both profit and sales — PepsiCo reported $1.61 EPS (vs. ~$1.55 est.) and $19.44B revenue, outperforming estimates and showing demand pickup from recent price reductions. Press Release
• Positive Sentiment: Management said North American food volumes are improving and price cuts on key snack SKUs are driving higher demand — a key operational win for the turnaround story. CNBC: Earnings Beat
• Positive Sentiment: Top-line beat confirmed by Reuters coverage highlighting that price cuts revived U.S. snack demand while energy drinks and new soda varieties remained strong. Reuters: Revenue Beat
• Neutral Sentiment: Macro tailwinds: U.S. futures were lifted by easing geopolitical tensions, which supported broader risk appetite and helped shares tread higher in premarket commentary. Benzinga: Market Futures
• Neutral Sentiment: Marketing/product activity: Gatorade announced hydration-focused packaging and product moves that should support the beverage portfolio over time. PR Newswire: Gatorade Campaign
• Negative Sentiment: FY‑2026 guidance disappointed: PepsiCo set EPS guidance of 8.465–8.628 (vs. ~8.62 consensus) and revenue guidance of $95.8B–$97.7B, below the ~$98.3B Street view — investors worry about margin pressure from price cuts and slower top‑line trajectory.
• Negative Sentiment: Analyst / target downgrades and legal noise — Barclays trimmed its price target to $154 (equal weight), and the company settled an EEOC suit (legal/PR distraction). MarketScreener: Barclays PT Cut Bloomberg Law: EEOC Settlement

Hedge Funds Weigh In On PepsiCo

Several institutional investors have recently made changes to their positions in the company. Mcguire Capital Advisors Inc. purchased a new stake in PepsiCo in the 4th quarter worth $67,000. T. Rowe Price Investment Management Inc. increased its holdings in PepsiCo by 15.3% in the 4th quarter. T. Rowe Price Investment Management Inc. now owns 22,069 shares of the company's stock worth $3,168,000 after acquiring an additional 2,925 shares in the last quarter. Compound Planning Inc. increased its holdings in PepsiCo by 30.2% in the 4th quarter. Compound Planning Inc. now owns 13,222 shares of the company's stock worth $1,898,000 after acquiring an additional 3,065 shares in the last quarter. TMB Capital Partners LLC purchased a new stake in PepsiCo in the 4th quarter worth $221,000. Finally, Alpine Woods Capital Investors LLC increased its holdings in PepsiCo by 13.3% in the 4th quarter. Alpine Woods Capital Investors LLC now owns 39,240 shares of the company's stock worth $5,632,000 after acquiring an additional 4,601 shares in the last quarter. 73.07% of the stock is owned by hedge funds and other institutional investors.

About PepsiCo

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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