PepsiCo (NASDAQ:PEP) Posts Quarterly Earnings Results, Beats Expectations By $0.02 EPS

PepsiCo (NASDAQ:PEP) released its quarterly earnings data on Tuesday. The company reported $2.26 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.24 by $0.02, FiscalAI reports. PepsiCo had a net margin of 7.82% and a return on equity of 57.58%. The business had revenue of $29.34 billion during the quarter, compared to analysts’ expectations of $28.96 billion.

PepsiCo Stock Performance

Shares of PEP opened at $155.20 on Tuesday. The company has a current ratio of 0.91, a quick ratio of 0.72 and a debt-to-equity ratio of 2.26. The firm’s fifty day simple moving average is $146.13 and its two-hundred day simple moving average is $145.67. PepsiCo has a 12 month low of $127.60 and a 12 month high of $160.15. The stock has a market capitalization of $212.21 billion, a P/E ratio of 29.51, a price-to-earnings-growth ratio of 5.05 and a beta of 0.40.

PepsiCo Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Tuesday, January 6th. Investors of record on Friday, December 5th were issued a $1.4225 dividend. The ex-dividend date was Friday, December 5th. This represents a $5.69 annualized dividend and a yield of 3.7%. PepsiCo’s payout ratio is presently 108.17%.

Hedge Funds Weigh In On PepsiCo

Several institutional investors have recently added to or reduced their stakes in PEP. Binnacle Investments Inc raised its position in shares of PepsiCo by 33.2% during the second quarter. Binnacle Investments Inc now owns 285 shares of the company’s stock valued at $38,000 after buying an additional 71 shares during the last quarter. Harvest Investment Services LLC grew its stake in PepsiCo by 4.9% during the third quarter. Harvest Investment Services LLC now owns 2,183 shares of the company’s stock valued at $307,000 after acquiring an additional 101 shares in the last quarter. Safeguard Investment Advisory Group LLC increased its holdings in PepsiCo by 7.6% in the 3rd quarter. Safeguard Investment Advisory Group LLC now owns 1,664 shares of the company’s stock valued at $234,000 after acquiring an additional 117 shares during the last quarter. Towarzystwo Funduszy Inwestycyjnych PZU SA lifted its stake in PepsiCo by 7.9% in the 3rd quarter. Towarzystwo Funduszy Inwestycyjnych PZU SA now owns 1,700 shares of the company’s stock worth $239,000 after purchasing an additional 125 shares in the last quarter. Finally, Voya Financial Advisors Inc. boosted its holdings in shares of PepsiCo by 3.7% during the 2nd quarter. Voya Financial Advisors Inc. now owns 3,740 shares of the company’s stock valued at $490,000 after purchasing an additional 132 shares during the last quarter. 73.07% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

Several brokerages have recently issued reports on PEP. Rothschild & Co Redburn upped their price target on shares of PepsiCo from $117.00 to $120.00 and gave the stock a “sell” rating in a report on Monday, December 15th. Evercore ISI boosted their price objective on PepsiCo from $150.00 to $152.00 in a research report on Friday, October 10th. Wells Fargo & Company lifted their price target on PepsiCo from $150.00 to $154.00 and gave the company a “positive” rating in a research note on Friday, October 10th. The Goldman Sachs Group upped their price objective on PepsiCo from $165.00 to $167.00 and gave the company a “buy” rating in a research note on Friday, October 10th. Finally, HSBC boosted their target price on shares of PepsiCo from $145.00 to $152.00 and gave the stock a “hold” rating in a report on Friday, October 10th. One research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating, ten have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, PepsiCo presently has a consensus rating of “Hold” and an average target price of $159.29.

PepsiCo News Roundup

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: Q4 results beat expectations — PepsiCo reported $2.26 EPS (vs. $2.24 est.) and revenue of $29.34B (vs. ~$28.96B est.), driven by pricing and productivity that offset softer volumes; management reiterated its FY2026 outlook. Press Release
• Positive Sentiment: Capital return boost — PepsiCo raised its dividend and authorized up to $10 billion in share buybacks, supporting EPS per-share prospects and returning cash to shareholders. RTT News: Dividend & Buyback
• Positive Sentiment: Product/market pockets showing resilience — international soda demand and U.S. low‑sugar beverages were cited as growth drivers, helping revenue outperformance. Reuters: Resilient Sodas
• Neutral Sentiment: Revenue gains were largely price-driven — management said price increases and productivity offset falling demand for snacks and drinks, a positive near-term margin lever but a warning sign on volume momentum. Yahoo Finance: Price Hikes Offset Demand
• Neutral Sentiment: Analyst and market positioning ahead of the print fueled volatility — several previews and analyst note updates raised expectations into the release, increasing sensitivity to forward guidance and margin signals. Benzinga: Analyst Forecasts
• Negative Sentiment: Price-cut announcement for snacks — WSJ reports PepsiCo will cut prices on Doritos and other snacks to deliver “more value,” a strategic move to regain volume that could pressure margins if sustained. WSJ: Price Cuts for Snacks

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.