PepsiCo (NASDAQ:PEP) Posts Quarterly Earnings Results

Key Points

• Q1 beat: PepsiCo reported EPS of $1.61 vs. $1.55 expected and revenue of $19.44B (up 8.5% YoY), with North America food volume growth returning thanks to strategic price cuts and improving margins.
• Capital returns: The company paid a quarterly dividend of $1.4225 (annualized $5.69, ~3.7% yield) and its board authorized a $10.0 billion share repurchase program (about 4.7% of shares).
• Mixed outlook from analysts: Management reiterated FY26 targets that sit slightly below some consensus estimates, prompting cautious moves such as Barclays lowering its price target while the consensus remains a "Hold" with a $168.16 target.

PepsiCo (NASDAQ:PEP - Get Free Report) released its quarterly earnings results on Wednesday. The company reported $1.61 earnings per share for the quarter, beating analysts' consensus estimates of $1.55 by $0.06, FiscalAI reports. PepsiCo had a return on equity of 57.92% and a net margin of 8.77%.The company had revenue of $19.44 billion for the quarter, compared to analysts' expectations of $18.89 billion. During the same quarter in the previous year, the company posted $1.48 earnings per share. The business's revenue for the quarter was up 8.5% compared to the same quarter last year.

PepsiCo Trading Down 0.6%

Shares of NASDAQ:PEP opened at $154.85 on Thursday. The firm has a fifty day moving average of $160.23 and a two-hundred day moving average of $151.41. The company has a quick ratio of 0.67, a current ratio of 0.85 and a debt-to-equity ratio of 2.06. PepsiCo has a 12-month low of $127.60 and a 12-month high of $171.48. The firm has a market capitalization of $211.67 billion, a P/E ratio of 25.81, a price-to-earnings-growth ratio of 3.01 and a beta of 0.40.

PepsiCo Announces Dividend

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

Institutional Trading of PepsiCo

A number of institutional investors have recently bought and sold shares of the company. Schnieders Capital Management LLC. raised its position in PepsiCo by 10.1% during the second quarter. Schnieders Capital Management LLC. now owns 38,164 shares of the company's stock valued at $5,039,000 after acquiring an additional 3,502 shares in the last quarter. Sivia Capital Partners LLC grew its position in PepsiCo by 138.5% in the second quarter. Sivia Capital Partners LLC now owns 6,527 shares of the company's stock worth $862,000 after acquiring an additional 3,790 shares in the last quarter. Brighton Jones LLC grew its position in PepsiCo by 12.4% in the fourth quarter. Brighton Jones LLC now owns 59,392 shares of the company's stock worth $9,031,000 after acquiring an additional 6,574 shares in the last quarter. TMB Capital Partners LLC acquired a new position in shares of PepsiCo during the 4th quarter worth $221,000. Finally, Acorns Advisers LLC bought a new position in shares of PepsiCo during the 4th quarter valued at $221,000. Institutional investors and hedge funds own 73.07% of the company's stock.

PepsiCo announced that its board has initiated a share repurchase program on Tuesday, February 3rd that authorizes the company to repurchase $10.00 billion in shares. This repurchase authorization authorizes the company to buy up to 4.7% of its stock through open market purchases. Stock repurchase programs are often an indication that the company's leadership believes its shares are undervalued.

Analyst Ratings Changes

PEP has been the subject of a number of research reports. Barclays decreased their price target on PepsiCo from $160.00 to $154.00 and set an "equal weight" rating for the company in a research note on Tuesday. BNP Paribas Exane set a $191.00 price objective on PepsiCo in a report on Wednesday, February 4th. Citigroup lifted their target price on PepsiCo from $170.00 to $182.00 and gave the stock a "buy" rating in a report on Wednesday, February 4th. Deutsche Bank Aktiengesellschaft dropped their price target 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, Argus upgraded shares of PepsiCo to a "hold" rating in a research report on Tuesday, February 17th. Eight equities research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Hold" and a consensus target price of $168.16.

PepsiCo News Summary

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: Q1 beat — PepsiCo reported EPS of $1.61 vs. $1.55 expected and revenue of $19.44B, topping estimates and showing improved margins and net income growth. PepsiCo tops quarterly revenue estimates as price cuts drive demand (Reuters)
• Positive Sentiment: Snack revival from price cuts — Strategic price reductions on value snack brands drove North America food volume growth (first increase in >2 years), helping revenue jump ~8.5% and signalling the pricing reset is working to win back shoppers. PepsiCo's Bold Discount Play Brings Shoppers Back To Snack Aisle (Benzinga)
• Positive Sentiment: Gatorade relaunch — PepsiCo is repositioning Gatorade to broaden hydration occasions beyond sports (label refresh, innovation, cleaner ingredients), which could expand margins and category share over time. Gatorade aims to change how people think about hydration (PR Newswire)
• Neutral Sentiment: Legal/ESG note — PepsiCo settled an EEOC suit related to a terminated blind worker; item is a reputational/legal footnote but not expected to materially move fundamentals. PepsiCo settles EEOC lawsuit (Bloomberg Law)
• Negative Sentiment: Guidance nuance — Management reiterated FY26 targets, but the company’s communicated EPS and revenue ranges sit slightly below some consensus estimates, which tempers the beat and may limit near‑term multiple expansion. Earnings snapshot: PepsiCo tops Q1 estimates; reaffirms FY26 outlook (Seeking Alpha)
• Negative Sentiment: Analyst pushback — Barclays trimmed its price target and maintained an equal‑weight rating recently, reflecting caution on margin recovery and long‑term demand trends. That analyst skepticism can cap upside even after a beat. Barclays adjusts PepsiCo price target (MarketScreener)

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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