Equities Analysts Offer Predictions for PepsiCo Q3 Earnings

PepsiCo, Inc. (NASDAQ:PEP) – Zacks Research reduced their Q3 2026 earnings estimates for PepsiCo in a note issued to investors on Thursday, July 23rd. Zacks Research analyst Team now anticipates that the company will post earnings of $2.32 per share for the quarter, down from their prior forecast of $2.43. The consensus estimate for PepsiCo’s current full-year earnings is $8.57 per share. Zacks Research also issued estimates for PepsiCo’s Q4 2026 earnings at $2.43 EPS, FY2026 earnings at $8.56 EPS, Q1 2027 earnings at $1.67 EPS, Q3 2027 earnings at $2.48 EPS, Q4 2027 earnings at $2.52 EPS, FY2027 earnings at $8.98 EPS, Q1 2028 earnings at $1.76 EPS, Q2 2028 earnings at $2.44 EPS and FY2028 earnings at $9.50 EPS.

PepsiCo (NASDAQ:PEP) last announced its quarterly earnings results on Thursday, July 9th. The company reported $2.20 EPS for the quarter, topping analysts’ consensus estimates of $2.19 by $0.01. The firm had revenue of $24.18 billion during the quarter, compared to analysts’ expectations of $23.95 billion. PepsiCo had a net margin of 10.78% and a return on equity of 54.63%. The company’s revenue for the quarter was up 6.4% compared to the same quarter last year. During the same quarter last year, the company earned $0.92 earnings per share. PepsiCo has set its FY 2026 guidance at 8.550-8.710 EPS.

Several other analysts have also commented on PEP. Piper Sandler set a $176.00 price target on PepsiCo in a research note on Thursday, July 9th. Deutsche Bank Aktiengesellschaft set a $155.00 price objective on PepsiCo in a report on Friday, July 10th. BNP Paribas Exane reduced their target price on shares of PepsiCo from $195.00 to $183.00 and set an “outperform” rating on the stock in a research note on Wednesday, July 8th. Weiss Ratings reiterated a “hold (c)” rating on shares of PepsiCo in a research report on Monday, July 6th. Finally, Wells Fargo & Company cut their price target on shares of PepsiCo from $150.00 to $140.00 and set an “equal weight” rating for the company in a report on Friday, July 10th. Seven analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company currently has an average rating of “Hold” and a consensus price target of $157.90.

PepsiCo Trading Up 1.3%

Shares of PEP opened at $136.64 on Friday. The company has a current ratio of 0.93, a quick ratio of 0.74 and a debt-to-equity ratio of 1.91. The stock has a market cap of $186.50 billion, a PE ratio of 17.91, a PEG ratio of 2.96 and a beta of 0.36. PepsiCo has a 1 year low of $133.73 and a 1 year high of $171.48. The stock has a 50 day simple moving average of $142.11 and a 200-day simple moving average of $150.93.

Institutional Trading of PepsiCo

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Auto Owners Insurance Co increased its stake in shares of PepsiCo by 14,857.8% in the 4th quarter. Auto Owners Insurance Co now owns 49,252,907 shares of the company’s stock valued at $7,068,777,000 after buying an additional 48,923,629 shares during the period. Norges Bank acquired a new position in shares of PepsiCo during the fourth quarter valued at $3,018,813,000. Diamant Asset Management Inc. boosted its holdings in PepsiCo by 16,146.5% in the first quarter. Diamant Asset Management Inc. now owns 3,586,423 shares of the company’s stock valued at $556,936,000 after acquiring an additional 3,564,348 shares during the last quarter. Assenagon Asset Management S.A. increased its position in PepsiCo by 952.6% in the second quarter. Assenagon Asset Management S.A. now owns 3,715,812 shares of the company’s stock worth $503,121,000 after purchasing an additional 3,362,794 shares during the period. Finally, AQR Capital Management LLC raised its holdings in PepsiCo by 120.7% during the 3rd quarter. AQR Capital Management LLC now owns 5,916,417 shares of the company’s stock worth $830,902,000 after purchasing an additional 3,235,726 shares during the last quarter. Institutional investors and hedge funds own 73.07% of the company’s stock.

PepsiCo Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Friday, September 4th will be given a dividend of $1.48 per share. This represents a $5.92 dividend on an annualized basis and a dividend yield of 4.3%. The ex-dividend date is Friday, September 4th. PepsiCo’s dividend payout ratio is presently 77.59%.

Key Stories Impacting PepsiCo

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: Investors bought an unusually large number of PepsiCo call options, with call volume running about 70% above average, signaling bullish trading activity and expectations for upside.
• Positive Sentiment: News that Quaker Oats plans a major expansion at PepsiCo’s North Texas facility could be viewed as a long-term growth and capacity positive. PepsiCo’s Quaker Oats plans major expansion at its North Texas facility
• Neutral Sentiment: PepsiCo is still trading near the lower end of its 52-week range, which reflects recent weakness, but also leaves room for a rebound if sentiment improves.
• Negative Sentiment: Zacks Research trimmed multiple PepsiCo earnings estimates, including FY2026, FY2027, FY2028 and several quarterly forecasts, which may pressure the stock by reinforcing concerns about earnings momentum.
• Negative Sentiment: Reports that PepsiCo will cease warehouse operations at an Oklahoma production site may raise concerns about restructuring or operational disruption. PepsiCo to cease warehouse operations at Oklahoma production site
• Negative Sentiment: One Seeking Alpha article argued PepsiCo should be downgraded to “Sell,” reflecting continued skepticism about the stock’s near-term return potential. PepsiCo: ‘Upgrading’ From Strong Sell To Sell, But I Still Expect Frozen Returns

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.