PepsiCo (NASDAQ:PEP) Updates FY 2026 Earnings Guidance

Key Points

• PepsiCo updated FY2026 guidance to EPS of $8.55-$8.71 and revenue of $97.7 billion-$99.6 billion. Revenue is roughly in line with Wall Street expectations, but the EPS outlook is slightly below consensus.
• The company’s latest quarter showed modest beats on both earnings and revenue, with EPS of $2.20 versus $2.19 expected and revenue of $24.18 billion versus $23.95 billion expected. Management pointed to strong international demand for snacks and drinks as a bright spot.
• Analyst sentiment remains mixed, and the stock was down 1.7% in the wake of the update. PepsiCo also recently raised its quarterly dividend to $1.48 per share, lifting the annualized payout to $5.92.

PepsiCo (NASDAQ:PEP - Get Free Report) issued an update on its FY 2026 earnings guidance on Thursday. The company provided EPS guidance of 8.550-8.710 for the period, compared to the consensus estimate of 8.640. The company issued revenue guidance of $97.7 billion-$99.6 billion, compared to the consensus revenue estimate of $98.9 billion.

PepsiCo Stock Down 1.7%

Shares of NASDAQ PEP opened at $142.51 on Thursday. The firm's 50-day moving average is $146.14 and its two-hundred day moving average is $151.63. The company has a market capitalization of $194.78 billion, a PE ratio of 22.37, a price-to-earnings-growth ratio of 2.92 and a beta of 0.36. PepsiCo has a 12-month low of $132.96 and a 12-month high of $171.48. The company has a debt-to-equity ratio of 1.98, a current ratio of 0.90 and a quick ratio of 0.72.

PepsiCo (NASDAQ:PEP - Get Free Report) last announced its earnings results on Wednesday, April 15th. The company reported $1.61 EPS for the quarter, beating analysts' consensus estimates of $1.55 by $0.06. PepsiCo had a return on equity of 56.61% and a net margin of 9.15%.The firm had revenue of $19.44 billion for the quarter, compared to analysts' expectations of $18.89 billion. During the same quarter in the prior year, the firm earned $1.48 EPS. PepsiCo's quarterly revenue was up 8.5% on a year-over-year basis. Equities analysts anticipate that PepsiCo will post 8.62 EPS for the current fiscal year.

PepsiCo Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, June 30th. Shareholders of record on Friday, June 5th were paid a dividend of $1.48 per share. The ex-dividend date of this dividend was Friday, June 5th. This represents a $5.92 annualized dividend and a dividend yield of 4.2%. This is an increase from PepsiCo's previous quarterly dividend of $1.42. PepsiCo's dividend payout ratio is 92.94%.

Analyst Ratings Changes

PEP has been the subject of a number of analyst reports. BNP Paribas Exane cut their price objective on shares of PepsiCo from $195.00 to $183.00 and set an "outperform" rating for the company in a research report on Wednesday. Royal Bank Of Canada lowered their target price on shares of PepsiCo from $165.00 to $163.00 and set a "sector perform" rating for the company in a research note on Thursday, April 9th. Bank of America reduced their price target on PepsiCo from $173.00 to $164.00 and set a "neutral" rating on the stock in a research note on Thursday, June 25th. UBS Group lowered their price objective on PepsiCo from $186.00 to $172.00 and set a "buy" rating for the company in a research report on Thursday, July 2nd. Finally, The Goldman Sachs Group raised their price target on PepsiCo from $180.00 to $183.00 and gave the stock a "buy" rating in a research note on Friday, April 17th. Eight investment analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company has an average rating of "Hold" and an average target price of $164.40.

PepsiCo News Summary

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo reported quarterly EPS of $2.20 versus $2.19 expected and revenue of $24.18 billion versus $23.95 billion expected, suggesting the business is still delivering modest top- and bottom-line beats. Article Title
• Positive Sentiment: Revenue strength was helped by robust international demand for snacks and drinks, which supports the view that PepsiCo’s global brands remain resilient even as U.S. demand softens. Article Title
• Neutral Sentiment: Management updated FY2026 guidance to EPS of $8.55-$8.71 and revenue of $97.7 billion-$99.6 billion, which is broadly in line with expectations on revenue but slightly below the EPS consensus, limiting upside enthusiasm. Article Title
• Neutral Sentiment: Analyst actions were mixed, with BNP Paribas Exane cutting its price target to $183 while keeping an outperform rating, and other recent targets still implying upside from current levels. Article Title
• Negative Sentiment: Commentary ahead of the report flagged weaker North American consumer spending and margin pressure, which may keep investors cautious about the pace of PepsiCo’s turnaround. Article Title

Institutional Investors Weigh In On PepsiCo

Large investors have recently made changes to their positions in the business. Swiss RE Ltd. acquired a new position in shares of PepsiCo during the 4th quarter valued at $28,000. Imprint Wealth LLC purchased a new stake in shares of PepsiCo in the third quarter worth about $31,000. Binnacle Investments Inc grew its stake in shares of PepsiCo by 33.2% in the second quarter. Binnacle Investments Inc now owns 285 shares of the company's stock valued at $38,000 after buying an additional 71 shares in the last quarter. Strive Asset Management LLC acquired a new position in PepsiCo during the 3rd quarter worth approximately $48,000. Finally, Wealth Watch Advisors INC purchased a new position in PepsiCo in the 3rd quarter worth approximately $67,000. Institutional investors and hedge funds own 73.07% of the company's stock.

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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