Stock Repurchase Program Authorized by PepsiCo (NASDAQ:PEP) Board

PepsiCo (NASDAQ:PEP) announced that its Board of Directors has initiated a share repurchase program on Tuesday, February 3rd, RTT News reports. The company plans to repurchase $10.00 billion in outstanding shares. This repurchase authorization allows the company to purchase up to 4.7% of its shares through open market purchases. Shares repurchase programs are often an indication that the company’s management believes its shares are undervalued.

PepsiCo Price Performance

PepsiCo stock opened at $162.85 on Wednesday. The firm has a fifty day moving average of $146.47 and a 200-day moving average of $145.81. PepsiCo has a 52-week low of $127.60 and a 52-week high of $163.44. The company has a quick ratio of 0.72, a current ratio of 0.91 and a debt-to-equity ratio of 2.26. The firm has a market capitalization of $222.67 billion, a P/E ratio of 30.96, a PEG ratio of 5.10 and a beta of 0.40.

PepsiCo (NASDAQ:PEP) last posted its earnings results on Tuesday, February 3rd. The company reported $2.26 earnings per share for the quarter, beating the consensus estimate of $2.24 by $0.02. PepsiCo had a net margin of 7.82% and a return on equity of 57.58%. The business had revenue of $29.34 billion for the quarter, compared to analyst estimates of $28.96 billion. During the same quarter in the previous year, the business posted $1.96 EPS. The business’s quarterly revenue was up 5.6% on a year-over-year basis. PepsiCo has set its FY 2026 guidance at 8.550-8.710 EPS. As a group, analysts predict that PepsiCo will post 8.3 EPS for the current year.

PepsiCo Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, January 6th. Stockholders of record on Friday, December 5th were paid 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 (DPR) is 108.17%.

Wall Street Analysts Forecast Growth

A number of research analysts have recently commented on the stock. DZ Bank raised shares of PepsiCo from a “hold” rating to a “buy” rating and set a $167.00 price objective for the company in a research note on Tuesday, October 21st. Exane BNP Paribas upgraded shares of PepsiCo from a “hold” rating to a “strong-buy” rating in a report on Friday, January 16th. JPMorgan Chase & Co. raised shares of PepsiCo from a “neutral” rating to an “overweight” rating and increased their price target for the stock from $151.00 to $164.00 in a research note on Wednesday, December 10th. Piper Sandler lifted their price target on shares of PepsiCo from $161.00 to $172.00 and gave the company an “overweight” rating in a report on Tuesday, December 9th. Finally, The Goldman Sachs Group upped their price objective on PepsiCo from $165.00 to $167.00 and gave the stock a “buy” rating in a report on Friday, October 10th. One analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating, ten have given a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, PepsiCo presently has an average rating of “Hold” and an average price target of $159.29.

Trending Headlines about PepsiCo

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

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.