PepsiCo (NASDAQ:PEP) Announces Quarterly Earnings Results

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

PepsiCo Trading Down 1.6%

NASDAQ PEP opened at $123.73 on Thursday. The stock has a market cap of $168.88 billion, a P/E ratio of 16.22, a price-to-earnings-growth ratio of 2.85 and a beta of 0.35. PepsiCo has a fifty-two week low of $123.47 and a fifty-two week high of $171.48. The stock has a 50 day simple moving average of $135.99 and a two-hundred day simple moving average of $143.32. The company has a debt-to-equity ratio of 1.91, a quick ratio of 0.74 and a current ratio of 0.93.

PepsiCo Dividend Announcement

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

Insider Activity at PepsiCo

In related news, EVP David Flavell sold 2,900 shares of the firm’s stock in a transaction 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 completion of the sale, the executive vice president owned 74,825 shares of the company’s stock, valued at $10,441,080.50. This trade represents a 3.73% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. 0.12% of the stock is currently owned by corporate insiders.

Wall Street Analyst Weigh In

A number of equities research analysts have weighed in on PEP shares. BNP Paribas Exane lowered their price target on PepsiCo from $183.00 to $161.00 and set an “outperform” rating on the stock in a research report on Wednesday, September 23rd. JPMorgan Chase & Co. downgraded shares of PepsiCo from an “overweight” rating to a “neutral” rating and decreased their price target for the stock from $170.00 to $138.00 in a research note on Tuesday, September 29th. Barclays lowered their price target on shares of PepsiCo from $142.00 to $133.00 and set an “equal weight” rating for the company in a research note on Wednesday, September 30th. UBS Group lowered their target price on PepsiCo from $159.00 to $145.00 and set a “buy” rating for the company in a research note on Friday, October 2nd. Finally, Morgan Stanley reduced their price target on PepsiCo from $180.00 to $160.00 and set an “equal weight” rating on the stock in a research report on Friday, July 10th. Five investment analysts have rated the stock with a Buy rating, fourteen have assigned a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average target price of $150.20.

Trending Headlines about 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.