Zacks Research Issues Negative Outlook for PepsiCo Earnings

PepsiCo, Inc. (NASDAQ:PEP) – Investment analysts at Zacks Research lowered their Q1 2026 earnings estimates for shares of PepsiCo in a note issued to investors on Tuesday, February 17th. Zacks Research analyst Team now forecasts that the company will post earnings per share of $1.49 for the quarter, down from their previous estimate of $1.57. The consensus estimate for PepsiCo’s current full-year earnings is $8.30 per share. Zacks Research also issued estimates for PepsiCo’s Q2 2026 earnings at $2.17 EPS, Q3 2026 earnings at $2.31 EPS, Q4 2026 earnings at $2.14 EPS, Q1 2027 earnings at $1.58 EPS, Q2 2027 earnings at $2.29 EPS, Q3 2027 earnings at $2.44 EPS, Q4 2027 earnings at $2.32 EPS, FY2027 earnings at $8.63 EPS and FY2028 earnings at $9.08 EPS.

PepsiCo (NASDAQ:PEP) last announced its earnings results on Monday, February 2nd. 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 during the quarter, compared to analysts’ expectations of $28.96 billion. PepsiCo had a return on equity of 57.92% and a net margin of 8.77%.The company’s quarterly revenue was up 5.6% on a year-over-year basis. During the same quarter last year, the business posted $1.96 earnings per share.

Other equities analysts have also recently issued reports about the stock. Citigroup raised their price objective on shares of PepsiCo from $170.00 to $182.00 and gave the company a “buy” rating in a research note on Wednesday, February 4th. Morgan Stanley boosted their target price on PepsiCo from $165.00 to $180.00 and gave the company an “equal weight” rating in a research note on Wednesday, February 4th. Piper Sandler increased their price target on PepsiCo from $161.00 to $172.00 and gave the company an “overweight” rating in a research report on Tuesday, December 9th. Argus upgraded shares of PepsiCo to a “hold” rating in a research note on Tuesday. Finally, Royal Bank Of Canada reiterated a “sector perform” rating and issued a $156.00 price objective on shares of PepsiCo in a report on Wednesday, February 4th. 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 company’s stock. According to data from MarketBeat, PepsiCo presently has an average rating of “Hold” and a consensus target price of $167.83.

PepsiCo Price Performance

NASDAQ PEP opened at $164.59 on Thursday. PepsiCo has a 12-month low of $127.60 and a 12-month high of $171.48. The stock has a market capitalization of $224.94 billion, a PE ratio of 27.43, a price-to-earnings-growth ratio of 3.13 and a beta of 0.40. The company has a quick ratio of 0.67, a current ratio of 0.85 and a debt-to-equity ratio of 2.06. The company has a 50 day moving average price of $150.96 and a two-hundred day moving average price of $147.74.

Institutional Trading of PepsiCo

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Mcguire Capital Advisors Inc. acquired a new position in shares of PepsiCo during the 4th quarter worth about $67,000. T. Rowe Price Investment Management Inc. grew its position in PepsiCo by 15.3% in the fourth quarter. T. Rowe Price Investment Management Inc. now owns 22,069 shares of the company’s stock worth $3,168,000 after acquiring an additional 2,925 shares during the period. WealthPoint Financial LLC acquired a new stake in shares of PepsiCo during the 4th quarter worth about $239,000. Compound Planning Inc. lifted its holdings in shares of PepsiCo by 30.2% in the 4th quarter. Compound Planning Inc. now owns 13,222 shares of the company’s stock worth $1,898,000 after acquiring an additional 3,065 shares during the last quarter. Finally, Claris Financial LLC purchased a new stake in shares of PepsiCo in the 4th quarter valued at $462,000. Institutional investors and hedge funds own 73.07% of the company’s stock.

PepsiCo declared that its board has initiated a share buyback plan on Tuesday, February 3rd that authorizes the company to repurchase $10.00 billion in shares. This repurchase authorization authorizes the company to repurchase up to 4.7% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company’s management believes its stock is undervalued.

PepsiCo Announces Dividend

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

PepsiCo News Roundup

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: Federal court blocks a proposed class action over snack pricing, removing a sizable litigation overhang and potential damages exposure. PepsiCo, Frito-Lay win US court order
• Positive Sentiment: New product launches and portfolio shift toward “functional” and health-forward items (prebiotic cola, fiber snacks, hydration products) signal revenue diversification and potential margin upside as the company targets health-conscious consumers. PepsiCo plays ‘offense’ to transform portfolio
• Positive Sentiment: PepsiCo’s prebiotic soda has gone nationwide — broad distribution of an innovation-led SKU can drive incremental top-line and shows the company can scale new beverage concepts. Prebiotic soda nationwide
• Positive Sentiment: Mountain Dew’s Baja Blast named the official soft drink of MLB increases brand visibility and promotional tailwinds during the baseball season. Mountain Dew MLB deal
• Positive Sentiment: Marketing and creator-led product efforts (targeting Gen Z) and continued focus on fiber/hydration show PepsiCo pushing innovation and targeted marketing to sustain growth. Creator-led product launch Pursuing fiber and hydration
• Neutral Sentiment: PepsiCo’s CAGNY presentation and related slides provide investor detail on strategy and outlook — transparency helps sentiment but contains no major surprises. CAGNY presentation transcript
• Neutral Sentiment: Argus moved PEP to a “hold” (from unknown prior) — a mild endorsement but not a strong buy signal. Argus upgrade to hold
• Negative Sentiment: Zacks Research cut multiple near‑term and FY2027 EPS estimates, lowering quarterly forecasts across 2026–2027; that reduces near-term earnings visibility and may pressure valuation until growth from new products is proven. Zacks industry/estimate note
• Neutral Sentiment: Coverage notes and articles highlighting PepsiCo as a steady dividend grower reaffirm income-oriented investor interest (stable long-term thesis, less near-term impact). Dividend-grower coverage

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.