Zacks Research Estimates PepsiCo's Q2 Earnings (NASDAQ:PEP)

Key Points

• Zacks Research raised its Q2 2026 EPS estimate for PepsiCo to $2.20 (from $2.17) and updated forward estimates, including FY2027 EPS of $9.12 and FY2028 EPS of $9.66, while consensus FY2026 remains $8.63.
• PepsiCo beat Q1 results with EPS of $1.61 (vs. $1.55 expected) and revenue of $19.44 billion (vs. $18.89 billion), and reiterated FY2026 guidance of $8.465–$8.628 EPS.
• The Board approved a $10 billion share buyback (about 4.7% of shares) and the company pays an annualized dividend of $5.69 (≈3.6% yield); analysts' average rating is a Hold with a $170.26 price target.

PepsiCo, Inc. (NASDAQ:PEP - Free Report) - Zacks Research raised their Q2 2026 earnings per share estimates for PepsiCo in a research report issued on Thursday, April 30th. Zacks Research analyst Team now forecasts that the company will post earnings of $2.20 per share for the quarter, up from their previous estimate of $2.17. The consensus estimate for PepsiCo's current full-year earnings is $8.63 per share. Zacks Research also issued estimates for PepsiCo's Q3 2026 earnings at $2.43 EPS, Q4 2026 earnings at $2.35 EPS, Q1 2027 earnings at $1.69 EPS, Q2 2027 earnings at $2.31 EPS, Q3 2027 earnings at $2.57 EPS, Q4 2027 earnings at $2.55 EPS, FY2027 earnings at $9.12 EPS, Q1 2028 earnings at $1.78 EPS and FY2028 earnings at $9.66 EPS.

PEP has been the subject of a number of other research reports. HSBC upped their price objective on PepsiCo from $175.00 to $176.00 and gave the stock a "hold" rating in a research note on Friday, April 17th. Wall Street Zen lowered PepsiCo from a "buy" rating to a "hold" rating in a research note on Saturday, April 18th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of PepsiCo in a research note on Wednesday, April 8th. Piper Sandler upped their price objective on PepsiCo from $172.00 to $181.00 and gave the stock an "overweight" rating in a research note on Thursday, March 12th. Finally, Morgan Stanley boosted their target price on PepsiCo from $165.00 to $180.00 and gave the stock an "equal weight" rating in a research report on Wednesday, February 4th. Eight investment analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, PepsiCo has an average rating of "Hold" and an average price target of $170.26.

PepsiCo Stock Performance

NASDAQ PEP opened at $158.49 on Friday. The firm has a market cap of $216.62 billion, a price-to-earnings ratio of 24.88, a price-to-earnings-growth ratio of 2.84 and a beta of 0.40. The company has a quick ratio of 0.72, a current ratio of 0.90 and a debt-to-equity ratio of 1.98. The business has a 50-day moving average price of $157.96 and a 200-day moving average price of $152.40. PepsiCo has a twelve month low of $127.60 and a twelve month high of $171.48.

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

Institutional Investors Weigh In On PepsiCo

Several large investors have recently bought and sold shares of PEP. Brighton Jones LLC increased its stake in PepsiCo by 12.4% in the fourth quarter. Brighton Jones LLC now owns 59,392 shares of the company's stock valued at $9,031,000 after purchasing an additional 6,574 shares in the last quarter. Caxton Associates LLP bought a new stake in PepsiCo in the first quarter valued at approximately $251,000. Sivia Capital Partners LLC increased its stake in PepsiCo by 138.5% in the second quarter. Sivia Capital Partners LLC now owns 6,527 shares of the company's stock valued at $862,000 after purchasing an additional 3,790 shares in the last quarter. Schnieders Capital Management LLC. increased its stake in PepsiCo by 10.1% in the second quarter. Schnieders Capital Management LLC. now owns 38,164 shares of the company's stock valued at $5,039,000 after purchasing an additional 3,502 shares in the last quarter. Finally, Sei Investments Co. increased its stake in PepsiCo by 45.5% in the second quarter. Sei Investments Co. now owns 536,133 shares of the company's stock valued at $70,789,000 after purchasing an additional 167,707 shares in the last quarter. Institutional investors own 73.07% of the company's stock.

PepsiCo announced that its Board of Directors has approved a stock buyback plan on Tuesday, February 3rd that permits the company to repurchase $10.00 billion in shares. This repurchase authorization permits the company to reacquire up to 4.7% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company's board believes its shares are undervalued.

PepsiCo Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, March 31st. Shareholders of record on Friday, March 6th were paid a $1.4225 dividend. This represents a $5.69 annualized dividend and a yield of 3.6%. The ex-dividend date of this dividend was Friday, March 6th. PepsiCo's dividend payout ratio is presently 89.32%.

Key Headlines Impacting PepsiCo

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo deployed 50 electric delivery trucks in Fresno as part of a local fleet electrification push, supporting lower fuel & maintenance costs over time and improving ESG credentials that appeal to investors. Fresno PepsiCo
• Positive Sentiment: PepsiCo is leading a renewable power pact with suppliers across Europe to decarbonize operations — a move that can lower long‑term energy costs, reduce carbon-risk exposure and strengthen ESG scoring. PepsiCo renewable pact
• Positive Sentiment: Management outlined a 2026 growth plan focused on cost cuts and innovation, signaling margin improvement and revenue initiatives that support earnings growth expectations. Investors favor clear cost-discipline and product innovation. 2026 growth plan
• Neutral Sentiment: PepsiCo plans to end its bottling/distribution partnership with Royal Unibrew (Denmark, Finland, Baltics) in 2028 — a structural change that could affect local margins and working capital as new arrangements are implemented. Impact depends on execution. Bottling shift in Northern Europe
• Neutral Sentiment: Tesla announced it is scaling Semi production. For PepsiCo this is mixed: wider availability of electric heavy trucks could lower fleet emissions/costs if PepsiCo adopts them, but Tesla’s ramp also increases competition for EV supply and logistics partners. Tesla Semi production
• Neutral Sentiment: PepsiCo is being featured in trending-stock writeups (Zacks/Yahoo), which can increase retail attention and trading volume but don’t change fundamentals by themselves. Trending stock coverage
• Negative Sentiment: A new consumer lawsuit alleges ultraprocessed ingredients are addictive and targets Kraft Heinz, PepsiCo and others — renewed legal/regulatory risk that could increase litigation costs or pressure product reformulation. Ultraprocessed food lawsuit
• Negative Sentiment: Erste Group trimmed FY2026/2027 EPS estimates for PepsiCo slightly, reflecting modest downside to analyst forecasts — a small near-term negative to consensus earnings momentum. Erste Group estimate cuts

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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