PepsiCo (NASDAQ:PEP) Hits New 12-Month High on Strong Earnings

PepsiCo, Inc. (NASDAQ:PEP) shares reached a new 52-week high during trading on Tuesday after the company announced better than expected quarterly earnings. The stock traded as high as $163.33 and last traded at $161.0080, with a volume of 7274809 shares traded. The stock had previously closed at $155.20.

The company reported $2.26 EPS for the quarter, beating the consensus estimate of $2.24 by $0.02. The company had revenue of $29.34 billion for the quarter, compared to analyst estimates of $28.96 billion. PepsiCo had a net margin of 8.77% and a return on equity of 57.92%. The firm’s revenue was up 5.6% on a year-over-year basis. During the same period in the prior year, the firm posted $1.96 earnings per share. PepsiCo has set its FY 2026 guidance at 8.550-8.710 EPS.

PepsiCo Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, January 6th. Investors of record on Friday, December 5th were given a $1.4225 dividend. The ex-dividend date of this dividend was Friday, December 5th. This represents a $5.69 dividend on an annualized basis and a yield of 3.4%. PepsiCo’s payout ratio is 108.17%.

PepsiCo declared that its board has initiated a stock repurchase plan on Tuesday, February 3rd that authorizes the company to repurchase $10.00 billion in shares. This repurchase authorization authorizes the company to reacquire up to 4.7% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company’s board of directors believes its stock is undervalued.

More PepsiCo News

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: Q4 results beat expectations and management reiterated FY‑2026 guidance — revenue and adjusted EPS topped estimates, driven by international soda strength and improving beverage momentum. This beat is the primary fundamental catalyst supporting the rally. PepsiCo tops quarterly revenue estimates
• Positive Sentiment: Board authorized a $10 billion share repurchase program (≈4.7% of shares outstanding), signaling management believes shares are undervalued and providing buyback-driven EPS support. RTT News on buyback
• Positive Sentiment: Dividend raised — board declared a quarterly dividend of $1.4225 per share, a 5% increase year-over-year, reinforcing income appeal for dividend investors. PepsiCo Declares Quarterly Dividend
• Positive Sentiment: Several sell‑side firms raised price targets (JPMorgan, Morgan Stanley, TD Cowen, Barclays among others), which can support momentum and attract allocation flows. Analyst price-target moves
• Neutral Sentiment: PepsiCo will cut suggested retail prices on major snacks (Lay’s, Doritos, Cheetos) by as much as 15% to boost affordability and volume ahead of big consumption events — a deliberate trade of price for share/volume that could help demand but pressures near-term margins. After Years of Increases, PepsiCo Pledges to Cut Prices on Snacks
• Neutral Sentiment: Strategic initiatives (tests to integrate beverage/snack distribution, trimming SKUs ~20%, refocusing top brands) aim to lift margins and execution — positive long-term if executed, but results are still early. MarketBeat strategic summary
• Negative Sentiment: Bearish/critical takes argue the rally is multiple expansion rather than improving volumes — price-led growth in Q4 and the new price cuts raise execution risk and could compress margins; some analysts/voices label the setup risky for new buyers. Seeking Alpha — Strong Sell
• Negative Sentiment: Macro/structural headwinds to snack volumes (e.g., consumer affordability pressures, GLP‑1–related demand shifts cited by commentators) remain a watch item; management is banking on price cuts and product focus to recover volumes. Jim Cramer commentary

Analysts Set New Price Targets

PEP has been the topic of a number of research reports. Bank of America raised their price target on PepsiCo from $150.00 to $155.00 and gave the stock a “neutral” rating in a research note on Friday, October 10th. Rothschild & Co Redburn lifted their target price on shares of PepsiCo from $117.00 to $120.00 and gave the company a “sell” rating in a report on Monday, December 15th. Citigroup increased their price target on shares of PepsiCo from $170.00 to $182.00 and gave the stock a “buy” rating in a research note on Wednesday. Royal Bank Of Canada reissued a “sector perform” rating and set a $156.00 price objective on shares of PepsiCo in a research report on Wednesday. Finally, Wall Street Zen cut shares of PepsiCo from a “buy” rating to a “hold” rating in a report on Saturday, December 27th. Nine investment analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Hold” and an average target price of $165.28.

Institutional Investors Weigh In On PepsiCo

A number of hedge funds have recently added to or reduced their stakes in PEP. Catalyst Financial Partners LLC boosted its holdings in PepsiCo by 9.0% in the 4th quarter. Catalyst Financial Partners LLC now owns 7,234 shares of the company’s stock valued at $1,038,000 after purchasing an additional 600 shares in the last quarter. Moneco Advisors LLC raised its stake in shares of PepsiCo by 6.6% during the 4th quarter. Moneco Advisors LLC now owns 13,878 shares of the company’s stock worth $1,992,000 after buying an additional 854 shares in the last quarter. Biltmore Family Office LLC lifted its holdings in shares of PepsiCo by 2.4% in the 4th quarter. Biltmore Family Office LLC now owns 26,088 shares of the company’s stock valued at $3,781,000 after buying an additional 611 shares during the period. Stonebridge Financial Group LLC MO purchased a new stake in shares of PepsiCo in the fourth quarter valued at approximately $253,000. Finally, Bridgewealth Advisory Group LLC grew its holdings in PepsiCo by 2.9% during the fourth quarter. Bridgewealth Advisory Group LLC now owns 5,025 shares of the company’s stock worth $721,000 after acquiring an additional 140 shares during the period. Institutional investors and hedge funds own 73.07% of the company’s stock.

PepsiCo Price Performance

The company has a debt-to-equity ratio of 2.06, a current ratio of 0.85 and a quick ratio of 0.72. The company has a 50-day simple moving average of $146.83 and a 200-day simple moving average of $145.95. The stock has a market cap of $227.22 billion, a PE ratio of 27.70, a PEG ratio of 5.35 and a beta of 0.40.

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.