PepsiCo (NASDAQ:PEP) Shares Climb 3.7% Following Earnings Beat

Shares of PepsiCo, Inc. (NASDAQ:PEP) traded up 3.7% on Thursday after the company announced better than expected quarterly earnings. The company traded as high as $129.50 and last traded at $128.34. Approximately 23,957,152 shares were traded during mid-day trading, an increase of 197% from the average daily volume of 8,078,939 shares. The stock had previously closed at $123.73.

The company reported $2.34 earnings per share for the quarter, topping analysts’ consensus estimates of $2.29 by $0.05. The company 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%.The business’s revenue for the quarter was up 5.6% compared to the same quarter last year. During the same period in the previous year, the firm posted $2.29 earnings per share.

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 issued a $1.48 dividend. This represents a $5.92 dividend on an annualized basis and a yield of 4.6%. The ex-dividend date was Friday, September 4th. PepsiCo’s dividend payout ratio is 77.59%.

Key PepsiCo News

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: Quarterly results exceeded expectations. Adjusted earnings reached $2.34 per share versus the $2.29 consensus, while revenue rose 5.6% year over year to $25.27 billion, ahead of estimates. Reported operating profit increased 19% to $4.26 billion. PepsiCo earnings top estimates, but company lowers full-year forecast
• Positive Sentiment: International operations and pricing supported growth. Stronger international performance helped offset pressure in North America, while pricing contributed to revenue gains. Management also highlighted healthier snack categories and plans for additional investment and cost reductions. PepsiCo Q3 Earnings and Revenues Beat Estimates on International Growth
• Positive Sentiment: Valuation and shareholder returns provide support. Commentators pointed to PepsiCo’s historically low valuation and roughly 4.7% dividend yield. The company expects to return approximately $8.9 billion to shareholders this year through dividends and buybacks. PepsiCo Stock Looks Poised to Bottom With High Yield, Deep Value
• Neutral Sentiment: Management is considering broader strategic options. Reports say PepsiCo is evaluating ways to improve its North American business, potentially including a business split, while expanding cost-cutting efforts. The long-term impact remains uncertain. Shifting Eating Habits Push PepsiCo to Weigh Options, Including a Split
• Negative Sentiment: Full-year guidance was reduced. PepsiCo lowered its fiscal 2026 core earnings-growth outlook to approximately 1%–2%, citing higher costs and margin pressure, particularly in North America. PepsiCo stock rises on earnings beat even as it lowers full-year profit forecast
• Negative Sentiment: U.S. consumer and beverage trends remain weak. North American soda volumes declined, and PepsiCo acknowledged that its beverage business is losing ground to Coca-Cola. Changing preferences, cost-conscious consumers and potential GLP-1 drug effects add pressure to its snacks and sugary drinks. PepsiCo Is Handing Market Share to Coca-Cola, Analyst Warns

Wall Street Analyst Weigh In

PEP has been the subject of a number of analyst reports. Wells Fargo & Company cut their price objective on shares of PepsiCo from $140.00 to $135.00 and set an “equal weight” rating for the company in a research report on Monday. BNP Paribas Exane lowered their target price on shares of PepsiCo from $183.00 to $161.00 and set an “outperform” rating for the company in a research note on Wednesday, September 23rd. Barclays reduced their price target on PepsiCo from $142.00 to $133.00 and set an “equal weight” rating on the stock in a research note on Wednesday, September 30th. Bank of America decreased their price objective on PepsiCo from $173.00 to $164.00 and set a “neutral” rating on the stock in a report on Thursday, June 25th. Finally, Sanford C. Bernstein set a $134.00 target price on PepsiCo in a research note on Friday, July 10th. Five investment analysts have rated the stock with a Buy rating, fourteen have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, PepsiCo has a consensus rating of “Hold” and a consensus target price of $150.20.

Insider Buying and Selling

In related news, EVP David Flavell sold 2,900 shares of the company’s stock in a transaction that occurred on Monday, July 27th. The shares were sold at an average price of $139.54, for a total transaction of $404,666.00. Following the completion of the transaction, the executive vice president owned 74,825 shares of the company’s stock, valued at approximately $10,441,080.50. This represents a 3.73% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Company insiders own 0.12% of the company’s stock.

Institutional Trading of PepsiCo

Institutional investors and hedge funds have recently made changes to their positions in the company. Auto Owners Insurance Co raised its holdings in PepsiCo by 14,857.8% in the fourth 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. Bank of America Corp DE acquired a new stake in shares of PepsiCo in the second quarter worth $2,755,509,000. Legal & General Group Plc purchased a new position in shares of PepsiCo in the 2nd quarter valued at $1,200,274,000. Corient Private Wealth LP acquired a new position in shares of PepsiCo during the 2nd quarter valued at $297,116,000. Finally, Canada Pension Plan Investment Board acquired a new position in shares of PepsiCo during the 2nd quarter valued at $487,558,000. 73.07% of the stock is currently owned by institutional investors and hedge funds.

PepsiCo Trading Up 3.7%

The stock has a market capitalization of $175.17 billion, a PE ratio of 16.82, a PEG ratio of 2.85 and a beta of 0.35. 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 business’s 50-day moving average is $135.99 and its two-hundred day moving average is $143.32.

About PepsiCo

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.