FY2026 EPS Estimates for PepsiCo Reduced by Zacks Research

PepsiCo, Inc. (NASDAQ:PEP) – Investment analysts at Zacks Research decreased their FY2026 earnings per share estimates for shares of PepsiCo in a research note issued to investors on Tuesday, February 17th. Zacks Research analyst Team now expects that the company will earn $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.

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

Several other research firms also recently weighed in on PEP. HSBC lifted their price target on shares of PepsiCo from $152.00 to $175.00 and gave the company a “hold” rating in a research note on Thursday, February 5th. 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. Wells Fargo & Company boosted their price objective on PepsiCo from $154.00 to $165.00 and gave the stock an “equal weight” rating in a research report on Wednesday, February 4th. Piper Sandler raised their price target on shares of PepsiCo from $161.00 to $172.00 and gave the stock an “overweight” rating in a research note on Tuesday, December 9th. Finally, BNP Paribas Exane set a $191.00 target price on shares of PepsiCo in a research report on Wednesday, February 4th. Eight research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock has a consensus rating of “Hold” and an average target price of $168.00.

PepsiCo Stock Up 0.2%

Shares of PepsiCo stock opened at $164.94 on Friday. The firm has a market cap of $225.42 billion, a price-to-earnings ratio of 27.49, a PEG ratio of 3.16 and a beta of 0.40. PepsiCo has a one year low of $127.60 and a one year high of $171.48. The stock’s 50-day moving average is $151.25 and its 200 day moving average is $147.92. The company has a debt-to-equity ratio of 2.06, a current ratio of 0.85 and a quick ratio of 0.67.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the business. Brighton Jones LLC increased its stake in shares of PepsiCo by 12.4% in the 4th quarter. Brighton Jones LLC now owns 59,392 shares of the company’s stock worth $9,031,000 after acquiring an additional 6,574 shares in the last quarter. Caxton Associates LLP purchased a new stake in PepsiCo in the first quarter worth approximately $251,000. Sivia Capital Partners LLC increased its position in PepsiCo by 138.5% during the second quarter. Sivia Capital Partners LLC now owns 6,527 shares of the company’s stock valued at $862,000 after acquiring an additional 3,790 shares during the last quarter. Schnieders Capital Management LLC. grew its position in PepsiCo by 10.1% during the second quarter. Schnieders Capital Management LLC. now owns 38,164 shares of the company’s stock valued at $5,039,000 after buying an additional 3,502 shares during the period. Finally, Retirement Planning Group LLC increased its stake in shares of PepsiCo by 5.4% in the 2nd quarter. Retirement Planning Group LLC now owns 3,957 shares of the company’s stock worth $522,000 after purchasing an additional 202 shares in the last quarter. Hedge funds and other institutional investors own 73.07% of the company’s stock.

PepsiCo Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 31st. Stockholders of record on Friday, March 6th will be issued a $1.4225 dividend. This represents a $5.69 dividend on an annualized basis and a dividend yield of 3.4%. The ex-dividend date is Friday, March 6th. PepsiCo’s payout ratio is presently 94.83%.

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

Trending Headlines about PepsiCo

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: US court blocks a proposed class action over snack pricing, removing a potential legal overhang and limiting near‑term liability risk for PepsiCo. PepsiCo, Frito-Lay win US court order barring class action in snack pricing lawsuit
• Positive Sentiment: New product and portfolio moves aim at faster growth: PepsiCo is pushing prebiotic cola and fiber‑forward snacks and expanding hydration offerings — moves intended to capture health‑conscious consumers and offset legacy snacking trends. PepsiCo Bets On Prebiotic Cola And Fiber Snacks To Sustain Growth
• Positive Sentiment: Marketing and distribution catalysts: PepsiCo rolled out its prebiotic soda nationwide and secured Mountain Dew Baja Blast as the official soft drink of MLB, both supporting brand reach and seasonal volume opportunities. PepsiCo’s prebiotic soda is now nationwide
• Positive Sentiment: TD Cowen nudged its price target modestly higher to $165 and kept a hold rating—a small analyst endorsement that supports the stock near current levels. TD Cowen adjusts price target on PepsiCo to $165
• Neutral Sentiment: Argus moved PepsiCo to a hold rating—reflecting steady fundamentals but limited upside from here. Argus upgrades PepsiCo to hold
• Neutral Sentiment: Industry coverage highlights PepsiCo alongside peers (Coke, Monster, Keurig) as companies navigating innovation and cost pressures; useful context but not a company‑specific catalyst. Zacks Industry Outlook Highlights
• Neutral Sentiment: Longer‑term consumer shifts from GLP‑1 weight‑loss drugs are a thematic risk for snack and beverage demand; PepsiCo is responding with healthier SKUs but the net impact is uncertain. Weight Loss Drugs Challenge Big Food As Diets Change
• Negative Sentiment: Zacks Research cut multiple near‑term and multi‑year EPS estimates (Q1–Q4 2026, FY2027/2028), trimming growth expectations and increasing downside risk to guidance sensitivity and valuation. (Zacks research note)

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.