PepsiCo (NASDAQ:PEP) Posts Earnings Results, Beats Estimates By $0.05 EPS

PepsiCo (NASDAQ:PEP) announced its earnings results on Wednesday. The company reported $2.34 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.29 by $0.05, FiscalAI reports. The firm had revenue of $25.27 billion during the quarter, compared to analysts’ expectations of $24.95 billion. PepsiCo had a return on equity of 54.63% and a net margin of 10.78%.

PepsiCo Stock Performance

Shares of PepsiCo stock opened at $123.73 on Thursday. PepsiCo has a 12 month low of $123.47 and a 12 month high of $171.48. 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 company has a market capitalization of $168.88 billion, a PE ratio of 16.22, a PEG ratio of 2.85 and a beta of 0.35. The stock’s fifty day simple moving average is $135.99 and its 200 day simple moving average is $143.32.

PepsiCo Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Wednesday, September 30th. Shareholders of record on Friday, September 4th were paid a $1.48 dividend. This represents a $5.92 annualized dividend and a yield of 4.8%. The ex-dividend date of this dividend was Friday, September 4th. PepsiCo’s dividend payout ratio is presently 77.59%.

Insider Activity at PepsiCo

In other PepsiCo news, EVP David Flavell sold 2,900 shares of the business’s stock in a transaction that occurred on Monday, July 27th. The stock was sold at an average price of $139.54, for a total value of $404,666.00. Following the sale, the executive vice president owned 74,825 shares in the company, valued at approximately $10,441,080.50. The trade was a 3.73% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. 0.12% of the stock is currently owned by insiders.

Analyst Upgrades and Downgrades

Several brokerages recently issued reports on PEP. Bank of America lowered their price target on PepsiCo from $173.00 to $164.00 and set a “neutral” rating on the stock in a research note on Thursday, June 25th. UBS Group lowered their price objective on PepsiCo from $159.00 to $145.00 and set a “buy” rating on the stock in a research report on Friday, October 2nd. Weiss Ratings cut PepsiCo from a “hold (c)” rating to a “hold (c-)” rating in a research report on Thursday, September 24th. Evercore reduced their price objective on shares of PepsiCo from $150.00 to $135.00 in a report on Wednesday, September 30th. Finally, Morgan Stanley dropped their target price on PepsiCo from $180.00 to $160.00 and set an “equal weight” rating for the company in a report on Friday, July 10th. Five equities research analysts have rated the stock with a Buy rating, fourteen have given a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus price target of $150.20.

Key Headlines Impacting PepsiCo

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo exceeded quarterly expectations: revenue rose 5.6% year over year to $25.27 billion, while adjusted EPS of $2.34 topped the $2.29 consensus estimate. Reported diluted EPS increased to $2.23 from $1.90, and operating profit climbed 19% to $4.26 billion. PepsiCo earnings top estimates, but company lowers full-year forecast
• Positive Sentiment: Management projects approximately 6% fiscal 2026 revenue growth and plans to return $8.9 billion to shareholders through dividends and stock repurchases, supporting PepsiCo’s appeal to income-focused investors. PepsiCo Q3 Revenue Rises 5.6% to $25.3 Billion
• Neutral Sentiment: Carlsberg’s expansion into Georgia and Armenia increases PepsiCo’s bottling reach to 17 markets across Eastern Europe and Central Asia, potentially improving international distribution but with limited near-term earnings impact. PepsiCo Expanded Its Bottling Reach To 17 Markets
• Negative Sentiment: PepsiCo lowered fiscal 2026 EPS guidance to $8.344–$8.425, below the $8.55 analyst consensus, even as it raised revenue guidance to $99.6 billion from a $98.9 billion consensus. The reduction signals margin and profitability pressure. PepsiCo trims outlook as sales and EPS rise in quarter
• Negative Sentiment: Investors remain concerned about weak North American snack demand, cost inflation and the longer-term impact of GLP-1 weight-loss drugs on salty snacks and sugary beverages. PepsiCo is also under pressure to deliver growth and margin targets associated with activist investor Elliott Investment Management. PepsiCo running out of time to meet Elliott-inspired targets
• Negative Sentiment: Royal Bank of Canada cut its price target to $150 and maintained a “sector perform” rating, while PepsiCo also recalled roughly 122,000 cases of Gatorade over undeclared dyes—an additional, though likely manageable, brand and execution risk. PepsiCo issues voluntary Gatorade recall

PepsiCo Company Profile

PepsiCo, Inc (NASDAQ:PEP) is a global food and beverage company that develops, manufactures, markets and distributes a broad portfolio of snacks, drinks and convenient foods. Its beverage brands include Pepsi, Mountain Dew, Gatorade, 7UP in select markets, and bubly, while its food and snack brands include Lay’s, Doritos, Cheetos, Tostitos, Fritos, Quaker and Ruffles.

The company’s operations include beverage production and distribution, snack foods, convenient meals and nutrition-oriented products.