FY2026 EPS Estimates for PepsiCo Reduced by Zacks Research

PepsiCo, Inc. (NASDAQ:PEP) – Stock analysts at Zacks Research decreased their FY2026 earnings per share estimates for PepsiCo in a research note issued on Tuesday, February 17th. Zacks Research analyst Team now expects that the company will post earnings of $8.11 per share for the year, down from their prior estimate of $8.52. The consensus estimate for PepsiCo’s current full-year earnings is $8.30 per share.

A number of other brokerages have also recently commented on PEP. Royal Bank Of Canada reaffirmed a “sector perform” rating and set a $156.00 price objective on shares of PepsiCo in a research note on Wednesday, February 4th. Citigroup raised their price target on shares of PepsiCo from $170.00 to $182.00 and gave the company a “buy” rating in a research report on Wednesday, February 4th. Jefferies Financial Group upped their price objective on shares of PepsiCo from $163.00 to $164.00 and gave the stock a “hold” rating in a research report on Tuesday, December 9th. Barclays increased their target price on shares of PepsiCo from $148.00 to $160.00 and gave the stock an “equal weight” rating in a research note on Wednesday, February 4th. Finally, HSBC lifted their price target on PepsiCo from $152.00 to $175.00 and gave the company a “hold” rating in a research note on Thursday, February 5th. Eight investment analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Hold” and an average target price of $167.83.

PepsiCo Trading Up 0.1%

NASDAQ PEP opened at $164.59 on Friday. The company has a fifty day moving average of $150.96 and a 200 day moving average of $147.74. The company has a market capitalization of $224.94 billion, a PE ratio of 27.43, a P/E/G ratio of 3.13 and a beta of 0.40. The company has a debt-to-equity ratio of 2.06, a current ratio of 0.85 and a quick ratio of 0.67. PepsiCo has a 1 year low of $127.60 and a 1 year high of $171.48.

PepsiCo (NASDAQ:PEP) last released its earnings results on Monday, February 2nd. The company reported $2.26 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.24 by $0.02. PepsiCo had a return on equity of 57.92% and a net margin of 8.77%.The firm had revenue of $29.34 billion for the quarter, compared to the consensus estimate of $28.96 billion. During the same period in the prior year, the firm earned $1.96 EPS. The firm’s revenue was up 5.6% on a year-over-year basis.

PepsiCo Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 31st. Shareholders of record on Friday, March 6th will be issued a $1.4225 dividend. The ex-dividend date is Friday, March 6th. This represents a $5.69 dividend on an annualized basis and a yield of 3.5%. PepsiCo’s dividend payout ratio is presently 94.83%.

PepsiCo declared that its board has authorized a stock repurchase plan on Tuesday, February 3rd that permits the company to repurchase $10.00 billion in outstanding shares. This repurchase authorization permits the company to purchase up to 4.7% of its stock through open market purchases. Stock repurchase plans are often a sign that the company’s board of directors believes its stock is undervalued.

Institutional Investors Weigh In On PepsiCo

A number of large investors have recently made changes to their positions in the stock. Swiss RE Ltd. acquired a new position in PepsiCo during the fourth quarter worth $28,000. JCIC Asset Management Inc. purchased a new position in shares of PepsiCo during the 3rd quarter worth $27,000. MH & Associates Securities Management Corp ADV acquired a new position in shares of PepsiCo during the 4th quarter valued at about $29,000. Evolution Wealth Management Inc. purchased a new stake in shares of PepsiCo in the second quarter valued at about $27,000. Finally, Imprint Wealth LLC acquired a new stake in PepsiCo during the third quarter worth about $31,000. 73.07% of the stock is currently owned by hedge funds and other institutional investors.

Key Headlines Impacting PepsiCo

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: Court win reduces legal overhang — A U.S. court granted PepsiCo and Frito‑Lay an order barring a class action over snack pricing, lowering potential litigation risk and related costs for the snacks segment. PepsiCo, Frito-Lay win US court order barring class action in snack pricing lawsuit
• Positive Sentiment: New product scale — PepsiCo’s prebiotic soda is now being rolled out nationwide, supporting innovation in higher‑margin, health‑oriented beverages that can drive category growth and mix improvement. PepsiCo’s prebiotic soda is now nationwide. Here’s what it is
• Positive Sentiment: Marketing / distribution boost — Mountain Dew Baja Blast named the official soft drink of MLB increases brand visibility and seasonally relevant demand opportunities for the beverage portfolio. PepsiCo’s Mountain Dew Baja Blast becomes official soft drink of MLB
• Positive Sentiment: Portfolio transformation toward health & fiber — Management is investing in fiber snacks, hydration and functional beverages (prebiotic cola, fiber snacks) and experimenting with creator‑led product launches aimed at Gen Z — initiatives that support long‑term growth and margin expansion if successful. PepsiCo plays ‘offense’ to transform portfolio for health-conscious consumers
• Positive Sentiment: Dividend reliability — Recent quarterly dividend payment continues PepsiCo’s long track record of increases, supporting appeal to income investors. Retirees Are Quietly Accumulating This 8% Dividend Grower With a Half-Century of Increases
• Neutral Sentiment: Analyst rating update — Argus moved PepsiCo to a “hold” (from a lower or different stance), a minor near‑term signal but not a major catalyst. Zacks / Argus coverage
• Neutral Sentiment: Investor presentation content — PepsiCo’s CAGNY presentation and related slides reiterated strategy (innovation, mix shift), offering transparency but no immediate new guidance. PepsiCo Presents at CAGNY Conference — Transcript
• Negative Sentiment: Analyst cuts to near‑term EPS — Zacks Research lowered multiple quarterly and full‑year EPS estimates across 2026–2027, which can pressure sentiment if investors focus on near‑term earnings revisions despite strategic growth initiatives. Zacks Research: EPS estimate reductions

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.