PepsiCo (NASDAQ:PEP) Posts Earnings Results

PepsiCo (NASDAQ:PEP) released its quarterly earnings results on Wednesday. The company reported $1.61 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.55 by $0.06, FiscalAI reports. PepsiCo had a return on equity of 57.92% and a net margin of 8.77%.The company had revenue of $19.44 billion during the quarter, compared to the consensus estimate of $18.89 billion. During the same quarter in the prior year, the company posted $1.48 EPS. The firm’s revenue was up 8.5% on a year-over-year basis.

PepsiCo Stock Down 0.6%

PEP stock opened at $154.85 on Thursday. PepsiCo has a twelve month low of $127.60 and a twelve month high of $171.48. The company has a quick ratio of 0.67, a current ratio of 0.85 and a debt-to-equity ratio of 2.06. The company has a market cap of $211.67 billion, a PE ratio of 25.81, a price-to-earnings-growth ratio of 3.01 and a beta of 0.40. The business’s 50-day simple moving average is $160.23 and its 200 day simple moving average is $151.41.

PepsiCo Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, March 31st. Investors of record on Friday, March 6th were paid a $1.4225 dividend. This represents a $5.69 annualized dividend and a dividend yield of 3.7%. The ex-dividend date was Friday, March 6th. PepsiCo’s dividend payout ratio (DPR) is presently 94.83%.

Wall Street Analyst Weigh In

A number of equities research analysts have issued reports on PEP shares. Weiss Ratings reaffirmed a “hold (c)” rating on shares of PepsiCo in a research report on Wednesday, April 8th. Evercore boosted their price objective on shares of PepsiCo from $152.00 to $165.00 in a research note on Wednesday, February 4th. Argus raised shares of PepsiCo to a “hold” rating in a report on Tuesday, February 17th. Deutsche Bank Aktiengesellschaft dropped their target price on shares of PepsiCo from $176.00 to $169.00 and set a “buy” rating on the stock in a report on Monday, March 30th. Finally, Morgan Stanley boosted their target price on shares of PepsiCo from $165.00 to $180.00 and gave the stock an “equal weight” rating in a research report on Wednesday, February 4th. Eight investment analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Hold” and an average price target of $168.16.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the company. Schnieders Capital Management LLC. increased its holdings in PepsiCo by 10.1% in the 2nd quarter. Schnieders Capital Management LLC. now owns 38,164 shares of the company’s stock valued at $5,039,000 after buying an additional 3,502 shares during the period. Sivia Capital Partners LLC lifted its holdings in shares of PepsiCo by 138.5% during the 2nd quarter. Sivia Capital Partners LLC now owns 6,527 shares of the company’s stock worth $862,000 after acquiring an additional 3,790 shares during the period. Brighton Jones LLC boosted its position in shares of PepsiCo by 12.4% during the 4th quarter. Brighton Jones LLC now owns 59,392 shares of the company’s stock valued at $9,031,000 after acquiring an additional 6,574 shares in the last quarter. Sfam LLC acquired a new position in PepsiCo in the fourth quarter worth about $103,000. Finally, Intesa Sanpaolo Wealth Management bought a new position in PepsiCo during the fourth quarter worth about $103,000. 73.07% of the stock is currently owned by institutional investors and hedge funds.

PepsiCo News Summary

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: Q1 beat — PepsiCo reported EPS of $1.61 vs. $1.55 expected and revenue of $19.44B, topping estimates and showing improved margins and net income growth. PepsiCo tops quarterly revenue estimates as price cuts drive demand (Reuters)
• Positive Sentiment: Snack revival from price cuts — Strategic price reductions on value snack brands drove North America food volume growth (first increase in >2 years), helping revenue jump ~8.5% and signalling the pricing reset is working to win back shoppers. PepsiCo’s Bold Discount Play Brings Shoppers Back To Snack Aisle (Benzinga)
• Positive Sentiment: Gatorade relaunch — PepsiCo is repositioning Gatorade to broaden hydration occasions beyond sports (label refresh, innovation, cleaner ingredients), which could expand margins and category share over time. Gatorade aims to change how people think about hydration (PR Newswire)
• Neutral Sentiment: Legal/ESG note — PepsiCo settled an EEOC suit related to a terminated blind worker; item is a reputational/legal footnote but not expected to materially move fundamentals. PepsiCo settles EEOC lawsuit (Bloomberg Law)
• Negative Sentiment: Guidance nuance — Management reiterated FY26 targets, but the company’s communicated EPS and revenue ranges sit slightly below some consensus estimates, which tempers the beat and may limit near‑term multiple expansion. Earnings snapshot: PepsiCo tops Q1 estimates; reaffirms FY26 outlook (Seeking Alpha)
• Negative Sentiment: Analyst pushback — Barclays trimmed its price target and maintained an equal‑weight rating recently, reflecting caution on margin recovery and long‑term demand trends. That analyst skepticism can cap upside even after a beat. Barclays adjusts PepsiCo price target (MarketScreener)

PepsiCo announced that its board has authorized a share repurchase program on Tuesday, February 3rd that permits the company to buyback $10.00 billion in outstanding shares. This buyback authorization permits the company to repurchase up to 4.7% of its shares through open market purchases. Shares buyback programs are typically an indication that the company’s leadership believes its shares are undervalued.

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.