PepsiCo (NASDAQ:PEP) Sets New 12-Month High on Better-Than-Expected Earnings

Shares of PepsiCo, Inc. (NASDAQ:PEP) hit a new 52-week high during trading on Tuesday following a better than expected earnings announcement. The stock traded as high as $163.33 and last traded at $161.0080, with a volume of 7274809 shares. The stock had previously closed at $155.20.

The company reported $2.26 earnings per share for the quarter, beating the consensus estimate of $2.24 by $0.02. The business had revenue of $29.34 billion for the quarter, compared to the consensus estimate of $28.96 billion. PepsiCo had a return on equity of 57.58% and a net margin of 7.82%.The business’s quarterly revenue was up 5.6% compared to the same quarter last year. During the same quarter last year, the business posted $1.96 earnings per share. PepsiCo has set its FY 2026 guidance at 8.550-8.710 EPS.

PepsiCo Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, January 6th. Stockholders of record on Friday, December 5th were given a $1.4225 dividend. The ex-dividend date was Friday, December 5th. This represents a $5.69 dividend on an annualized basis and a dividend yield of 3.5%. PepsiCo’s dividend payout ratio is 108.17%.

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

Key PepsiCo News

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: Q4 beat and solid top-line — PepsiCo reported EPS and revenue above expectations, with beverage strength internationally and resilient low‑sugar U.S. drink sales; management reiterated its FY2026 outlook. This supports the bullish view that the turnaround is gaining traction. PepsiCo tops quarterly revenue estimates
• Positive Sentiment: Shareholder returns boosted — PepsiCo raised its dividend and announced a sizable share‑buyback program (up to $10B), which is supportive for the stock’s valuation and income-oriented investors. PepsiCo reports strong Q4 revenue
• Positive Sentiment: Analyst sentiment shifting — some investors/analysts are upgrading the stock after the results and improved outlook, describing a better risk–return profile. That can lend follow‑through buying. Seeking Alpha: Why upgrading the stock
• Neutral Sentiment: Mixed headlines and commentary — opinion pieces comparing PEP to Coca‑Cola and CEO comments on demographic trends (Hispanic consumers) add context but are less likely to move the price immediately versus hard financials. Why I Choose Coca‑Cola over PepsiCo
• Negative Sentiment: Price cuts on key snacks could pressure margins — management announced U.S. suggested retail price cuts up to ~15% on marquee snack brands to address affordability ahead of Super Bowl week. While aimed at driving volumes, investors fear margin erosion and signaling of weaker underlying demand. After Years of Increases, PepsiCo Pledges to Cut Prices on Snacks
• Negative Sentiment: Longer‑term demand worries for snacks — commentary (including from market voices) highlights headwinds to Frito‑Lay volumes (GLP‑1 impacts, affordability), which could keep investors cautious even after the beat. Jim Cramer on PepsiCo’s recent rally

Analyst Upgrades and Downgrades

Several analysts have recently weighed in on PEP shares. Piper Sandler increased their price target on shares of PepsiCo from $161.00 to $172.00 and gave the company an “overweight” rating in a research note on Tuesday, December 9th. Loop Capital set a $164.00 price target on PepsiCo in a report on Thursday, October 23rd. The Goldman Sachs Group boosted their price objective on shares of PepsiCo from $165.00 to $167.00 and gave the company a “buy” rating in a report on Friday, October 10th. Citigroup increased their target price on shares of PepsiCo from $165.00 to $170.00 and gave the stock a “buy” rating in a research note on Wednesday, December 17th. Finally, Wall Street Zen downgraded shares of PepsiCo from a “buy” rating to a “hold” rating in a research note on Saturday, December 27th. One investment analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating, ten have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Hold” and an average target price of $159.29.

Institutional Investors Weigh In On PepsiCo

Hedge funds have recently added to or reduced their stakes in the business. Apeiron RIA LLC increased its position in shares of PepsiCo by 3.4% during the fourth quarter. Apeiron RIA LLC now owns 2,854 shares of the company’s stock worth $442,000 after acquiring an additional 94 shares during the period. NewEdge Wealth LLC increased its holdings in PepsiCo by 26.2% in the fourth quarter. NewEdge Wealth LLC now owns 42,473 shares of the company’s stock valued at $6,096,000 after buying an additional 8,830 shares during the last quarter. Triton Financial Group Inc boosted its position in shares of PepsiCo by 1.9% during the 4th quarter. Triton Financial Group Inc now owns 7,799 shares of the company’s stock worth $1,119,000 after acquiring an additional 149 shares in the last quarter. Drucker Wealth 3.0 LLC increased its holdings in shares of PepsiCo by 6.5% in the 4th quarter. Drucker Wealth 3.0 LLC now owns 11,424 shares of the company’s stock valued at $1,640,000 after acquiring an additional 693 shares during the last quarter. Finally, Crossmark Global Holdings Inc. raised its position in shares of PepsiCo by 8.3% during the 4th quarter. Crossmark Global Holdings Inc. now owns 92,566 shares of the company’s stock worth $13,285,000 after acquiring an additional 7,089 shares in the last quarter. 73.07% of the stock is currently owned by institutional investors and hedge funds.

PepsiCo Stock Performance

The firm has a 50 day moving average of $146.47 and a two-hundred day moving average of $145.81. The company has a debt-to-equity ratio of 2.26, a current ratio of 0.91 and a quick ratio of 0.72. The stock has a market cap of $222.67 billion, a PE ratio of 30.96, a PEG ratio of 5.10 and a beta of 0.40.

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.