Zacks Research Predicts PepsiCo’s Q1 Earnings (NASDAQ:PEP)

PepsiCo, Inc. (NASDAQ:PEP) – Analysts at Zacks Research lowered their Q1 2026 earnings per share estimates for PepsiCo in a note issued to investors on Tuesday, February 17th. Zacks Research analyst Team now forecasts that the company will post earnings per share of $1.49 for the quarter, down from their previous forecast of $1.57. The consensus estimate for PepsiCo’s current full-year earnings is $8.30 per share. Zacks Research also issued estimates for PepsiCo’s Q2 2026 earnings at $2.17 EPS, Q3 2026 earnings at $2.31 EPS, Q4 2026 earnings at $2.14 EPS, Q1 2027 earnings at $1.58 EPS, Q2 2027 earnings at $2.29 EPS, Q3 2027 earnings at $2.44 EPS, Q4 2027 earnings at $2.32 EPS, FY2027 earnings at $8.63 EPS and FY2028 earnings at $9.08 EPS.

PepsiCo (NASDAQ:PEP) last released its quarterly earnings results on Monday, February 2nd. The company reported $2.26 earnings per share for the quarter, topping the consensus estimate of $2.24 by $0.02. PepsiCo had a return on equity of 57.92% and a net margin of 8.77%.The company had revenue of $29.34 billion during the quarter, compared to the consensus estimate of $28.96 billion. During the same quarter last year, the business posted $1.96 earnings per share. PepsiCo’s revenue was up 5.6% compared to the same quarter last year.

Several other analysts have also weighed in on the stock. Wells Fargo & Company lifted their target price on PepsiCo from $154.00 to $165.00 and gave the company an “equal weight” rating in a research note on Wednesday, February 4th. Royal Bank Of Canada restated a “sector perform” rating and set a $156.00 price objective on shares of PepsiCo in a research report on Wednesday, February 4th. HSBC increased their target price on PepsiCo from $152.00 to $175.00 and gave the stock a “hold” rating in a research report on Thursday, February 5th. BNP Paribas Exane set a $191.00 price target on shares of PepsiCo in a report on Wednesday, February 4th. Finally, Weiss Ratings restated a “hold (c)” rating on shares of PepsiCo in a research report on Friday, January 9th. Eight equities research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and an average price target of $168.00.

PepsiCo Stock Performance

PepsiCo stock opened at $164.94 on Thursday. The company has a debt-to-equity ratio of 2.06, a current ratio of 0.85 and a quick ratio of 0.67. PepsiCo has a 12 month low of $127.60 and a 12 month high of $171.48. The company has a market cap of $225.42 billion, a price-to-earnings ratio of 27.49, a price-to-earnings-growth ratio of 3.16 and a beta of 0.40. The stock’s 50-day moving average is $151.25 and its 200-day moving average is $147.92.

PepsiCo Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Tuesday, March 31st. Stockholders of record on Friday, March 6th will be issued a dividend of $1.4225 per share. The ex-dividend date is Friday, March 6th. This represents a $5.69 dividend on an annualized basis and a dividend yield of 3.4%. PepsiCo’s payout ratio is currently 94.83%.

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

Institutional Investors Weigh In On PepsiCo

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in PEP. SB Capital Management Inc acquired a new position in PepsiCo during the fourth quarter worth $596,000. Cambient Family Office LLC bought a new stake in shares of PepsiCo during the 4th quarter worth about $4,546,000. McLaughlin Asset Management Inc. acquired a new position in shares of PepsiCo during the 4th quarter valued at about $399,000. Wick Capital Partners LLC acquired a new stake in PepsiCo in the 4th quarter worth approximately $1,454,000. Finally, Mcguire Capital Advisors Inc. bought a new stake in PepsiCo during the fourth quarter worth approximately $67,000. Hedge funds and other institutional investors own 73.07% of the company’s stock.

Key PepsiCo News

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: US court blocks a proposed class action over snack pricing, removing a potential legal overhang and limiting near‑term liability risk for PepsiCo. PepsiCo, Frito-Lay win US court order barring class action in snack pricing lawsuit
• Positive Sentiment: New product and portfolio moves aim at faster growth: PepsiCo is pushing prebiotic cola and fiber‑forward snacks and expanding hydration offerings — moves intended to capture health‑conscious consumers and offset legacy snacking trends. PepsiCo Bets On Prebiotic Cola And Fiber Snacks To Sustain Growth
• Positive Sentiment: Marketing and distribution catalysts: PepsiCo rolled out its prebiotic soda nationwide and secured Mountain Dew Baja Blast as the official soft drink of MLB, both supporting brand reach and seasonal volume opportunities. PepsiCo’s prebiotic soda is now nationwide
• Positive Sentiment: TD Cowen nudged its price target modestly higher to $165 and kept a hold rating—a small analyst endorsement that supports the stock near current levels. TD Cowen adjusts price target on PepsiCo to $165
• Neutral Sentiment: Argus moved PepsiCo to a hold rating—reflecting steady fundamentals but limited upside from here. Argus upgrades PepsiCo to hold
• Neutral Sentiment: Industry coverage highlights PepsiCo alongside peers (Coke, Monster, Keurig) as companies navigating innovation and cost pressures; useful context but not a company‑specific catalyst. Zacks Industry Outlook Highlights
• Neutral Sentiment: Longer‑term consumer shifts from GLP‑1 weight‑loss drugs are a thematic risk for snack and beverage demand; PepsiCo is responding with healthier SKUs but the net impact is uncertain. Weight Loss Drugs Challenge Big Food As Diets Change
• Negative Sentiment: Zacks Research cut multiple near‑term and multi‑year EPS estimates (Q1–Q4 2026, FY2027/2028), trimming growth expectations and increasing downside risk to guidance sensitivity and valuation. (Zacks research note)

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.