Erste Group Bank Decreases Earnings Estimates for PepsiCo

PepsiCo, Inc. (NASDAQ:PEP) – Investment analysts at Erste Group Bank decreased their FY2026 earnings estimates for PepsiCo in a report issued on Wednesday, October 21st. Erste Group Bank analyst S. Lingnau now expects that the company will earn $8.39 per share for the year, down from their prior estimate of $8.55. The consensus estimate for PepsiCo’s current full-year earnings is $8.41 per share. Erste Group Bank also issued estimates for PepsiCo’s FY2027 earnings at $8.60 EPS.

PepsiCo (NASDAQ:PEP) last issued its earnings results on Wednesday, October 7th. The company reported $2.34 earnings per share for the quarter, beating the consensus estimate of $2.29 by $0.05. PepsiCo had a net margin of 11.09% and a return on equity of 53.08%. The firm had revenue of $25.27 billion for the quarter, compared to analysts’ expectations of $24.95 billion. During the same quarter last year, the company earned $2.29 earnings per share. The firm’s revenue was up 5.6% compared to the same quarter last year.

A number of other brokerages also recently commented on PEP. UBS Group reduced their price objective on shares of PepsiCo from $159.00 to $145.00 and set a “buy” rating on the stock in a report on Friday, October 2nd. Piper Sandler decreased their price objective on shares of PepsiCo from $176.00 to $140.00 and set an “overweight” rating for the company in a research report on Friday, October 9th. Evercore lowered their target price on shares of PepsiCo from $150.00 to $135.00 in a research note on Wednesday, September 30th. Royal Bank Of Canada dropped their target price on PepsiCo from $161.00 to $150.00 and set a “sector perform” rating on the stock in a report on Tuesday, October 6th. Finally, Jefferies Financial Group reissued a “hold” rating on shares of PepsiCo in a report on Thursday, October 8th. One investment analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, fourteen have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus target price of $143.28.

PepsiCo Trading Up 3.1%

NASDAQ PEP opened at $138.83 on Friday. The company has a quick ratio of 0.76, a current ratio of 0.94 and a debt-to-equity ratio of 1.90. PepsiCo has a 52 week low of $123.47 and a 52 week high of $171.48. The stock has a market capitalization of $189.19 billion, a PE ratio of 16.02, a price-to-earnings-growth ratio of 4.01 and a beta of 0.35. The firm has a 50 day moving average of $134.15 and a two-hundred day moving average of $141.57.

Insider Buying and Selling

In related news, Director Robert C. Pohlad acquired 184,646 shares of the business’s stock in a transaction on Wednesday, October 14th. The shares were bought at an average price of $128.28 per share, with a total value of $23,686,388.88. Following the completion of the acquisition, the director owned 433,009 shares in the company, valued at $55,546,394.52. This trade represents a 74.35% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, 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 transaction of $404,666.00. Following the sale, the executive vice president owned 74,825 shares of the company’s stock, valued at $10,441,080.50. This represents a 3.73% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 0.12% of the company’s stock.

Institutional Investors Weigh In On PepsiCo

Several hedge funds and other institutional investors have recently bought and sold shares of PEP. BlackRock Inc. boosted its stake in PepsiCo by 2.1% in the second quarter. BlackRock Inc. now owns 118,281,854 shares of the company’s stock valued at $16,015,363,000 after acquiring an additional 2,440,377 shares in the last quarter. State Street Corp grew its holdings in shares of PepsiCo by 1.7% during the second quarter. State Street Corp now owns 60,406,932 shares of the company’s stock worth $8,179,099,000 after purchasing an additional 987,582 shares during the last quarter. Bank of America Corp DE increased its position in shares of PepsiCo by 0.6% during the first quarter. Bank of America Corp DE now owns 21,283,701 shares of the company’s stock worth $3,305,146,000 after purchasing an additional 133,325 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its position in shares of PepsiCo by 4.9% during the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 11,817,684 shares of the company’s stock worth $1,600,114,000 after purchasing an additional 549,336 shares in the last quarter. Finally, Amundi lifted its holdings in shares of PepsiCo by 16.8% in the 1st quarter. Amundi now owns 11,444,671 shares of the company’s stock valued at $1,777,243,000 after purchasing an additional 1,647,506 shares during the last quarter. 73.07% of the stock is currently owned by institutional investors and hedge funds.

Key Headlines Impacting PepsiCo

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: Long-term Taco Bell agreement: PepsiCo renewed its beverage partnership with Taco Bell for 11 years, through 2036, across participating U.S. locations and select international markets. The deal protects distribution for Pepsi, Mountain Dew Baja Blast and future crafted, functional and energy drinks, providing a notable win after KFC recently switched its U.S. beverage supplier to Coca-Cola. Taco Bell and PepsiCo Commit to 11 More Years Together
• Positive Sentiment: Growth initiatives could broaden the portfolio: PepsiCo is expanding Quaker snacks in India and launching Good Warrior protein bars, while its multipack snack business and healthier brands such as Poppi are intended to capture changing consumer preferences. These launches are strategically supportive, though their financial contribution is not yet clear. PepsiCo champions protein with Good Warrior bars
• Neutral Sentiment: Valuation offers some support: Analysts and investors view PepsiCo as a potentially attractive contrarian dividend stock after it traded well below its 52-week high. However, inflation, cautious consumer spending and margin pressure remain important risks, and the company’s high payout and leverage limit flexibility.
• Negative Sentiment: Knoxville bottling-plant closure signals weak beverage demand: PepsiCo is closing its Tennessee facility and eliminating roughly 112–122 manufacturing, maintenance and warehouse positions amid declining soft-drink volumes. The move should reduce costs and align capacity with demand, but it also underscores North American beverage weakness and follows the loss of KFC’s U.S. business to Coca-Cola. PepsiCo shuts Tennessee bottling plant amid sliding soft drink volumes

About PepsiCo

PepsiCo, Inc (NASDAQ:PEP) is a global food and beverage company whose portfolio includes Pepsi-Cola, Mountain Dew, Gatorade, Lay’s, Doritos, Cheetos, Quaker, Tostitos, Fritos, and SodaStream. Its products span carbonated soft drinks, sports and energy beverages, bottled water, juices, convenient foods, snacks, and other packaged food offerings.

The company sells products through retail stores, restaurants, food-service providers, e-commerce platforms, and other distribution channels. PepsiCo serves consumers in North America and international markets across Latin America, Europe, Africa, the Middle East, and Asia-Pacific.