FY2026 EPS Estimates for PepsiCo Lowered by Erste Group Bank

PepsiCo, Inc. (NASDAQ:PEP) – Investment analysts at Erste Group Bank reduced their FY2026 earnings per share estimates for shares of PepsiCo in a research note issued on Wednesday, July 15th. Erste Group Bank analyst S. Lingnau now anticipates that the company will post earnings per share of $8.55 for the year, down from their previous estimate of $8.60. The consensus estimate for PepsiCo’s current full-year earnings is $8.58 per share. Erste Group Bank also issued estimates for PepsiCo’s FY2027 earnings at $9.02 EPS.

PepsiCo (NASDAQ:PEP) last issued its quarterly earnings data on Thursday, July 9th. The company reported $2.20 earnings per share for the quarter, topping analysts’ consensus estimates of $2.19 by $0.01. The firm had revenue of $24.18 billion for the quarter, compared to analyst estimates of $23.95 billion. PepsiCo had a return on equity of 54.63% and a net margin of 10.78%.The business’s quarterly revenue was up 6.4% compared to the same quarter last year. During the same period last year, the company earned $0.92 EPS. PepsiCo has set its FY 2026 guidance at 8.550-8.710 EPS.

A number of other brokerages also recently issued reports on PEP. Sanford C. Bernstein set a $134.00 price objective on shares of PepsiCo in a research report on Friday, July 10th. Citigroup cut shares of PepsiCo from a “buy” rating to a “neutral” rating and dropped their target price for the stock from $170.00 to $145.00 in a research report on Friday, July 10th. Morgan Stanley reduced their price target on shares of PepsiCo from $180.00 to $160.00 and set an “equal weight” rating on the stock in a research report on Friday, July 10th. Wall Street Zen downgraded shares of PepsiCo from a “buy” rating to a “hold” rating in a research note on Saturday, April 18th. Finally, TD Cowen lowered their price objective on shares of PepsiCo from $150.00 to $145.00 and set a “hold” rating for the company in a report on Friday, July 10th. Seven equities research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the company has a consensus rating of “Hold” and an average price target of $157.70.

PepsiCo Stock Performance

Shares of PEP stock opened at $137.12 on Friday. The firm has a market capitalization of $187.15 billion, a price-to-earnings ratio of 17.97, a PEG ratio of 3.01 and a beta of 0.36. The stock has a fifty day moving average of $143.53 and a 200 day moving average of $151.21. PepsiCo has a 52 week low of $134.65 and a 52 week high of $171.48. The company has a quick ratio of 0.74, a current ratio of 0.93 and a debt-to-equity ratio of 1.91.

Institutional Trading of PepsiCo

Hedge funds and other institutional investors have recently modified their holdings of the business. Auto Owners Insurance Co boosted its holdings in PepsiCo by 14,857.8% in the fourth quarter. Auto Owners Insurance Co now owns 49,252,907 shares of the company’s stock worth $7,068,777,000 after acquiring an additional 48,923,629 shares in the last quarter. Norges Bank bought a new position in shares of PepsiCo during the fourth quarter valued at $3,018,813,000. Diamant Asset Management Inc. raised its position in shares of PepsiCo by 16,146.5% in the 1st quarter. Diamant Asset Management Inc. now owns 3,586,423 shares of the company’s stock worth $556,936,000 after purchasing an additional 3,564,348 shares during the last quarter. Assenagon Asset Management S.A. boosted its stake in PepsiCo by 952.6% in the 2nd quarter. Assenagon Asset Management S.A. now owns 3,715,812 shares of the company’s stock worth $503,121,000 after purchasing an additional 3,362,794 shares in the last quarter. Finally, AQR Capital Management LLC boosted its stake in PepsiCo by 120.7% in the 3rd quarter. AQR Capital Management LLC now owns 5,916,417 shares of the company’s stock worth $830,902,000 after purchasing an additional 3,235,726 shares in the last quarter. 73.07% of the stock is owned by hedge funds and other institutional investors.

PepsiCo Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, June 30th. Shareholders of record on Friday, June 5th were given a dividend of $1.48 per share. This is an increase from PepsiCo’s previous quarterly dividend of $1.42. This represents a $5.92 annualized dividend and a yield of 4.3%. The ex-dividend date of this dividend was Friday, June 5th. PepsiCo’s payout ratio is 77.59%.

Trending Headlines about PepsiCo

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo declared a quarterly dividend of $1.48 per share, a 4% increase from a year ago, which reinforces its appeal as a steady income stock. PepsiCo Declares Quarterly Dividend
• Positive Sentiment: PepsiCo India reported robust first-half growth and said it will set up a new food manufacturing facility in Tamil Nadu, signaling continued international expansion. PepsiCo India sees robust growth in H1
• Positive Sentiment: PepsiCo’s CEO said the company remains cautiously optimistic about the second half, citing resilient demand in the face of weather-related uncertainty. PepsiCo cautiously optimistic on H2 amid robust demand
• Neutral Sentiment: PepsiCo is drawing more investor attention, but the Zacks items are mostly watchlist-style coverage rather than new fundamental news. PepsiCo, Inc. (PEP) is Attracting Investor Attention
• Neutral Sentiment: PepsiCo is pushing sustainable sourcing further, saying 70% of ingredients now come from sustainable sources and targeting 90% by 2030, which supports long-term ESG goals but is unlikely to move the stock near term. PepsiCo (PEP) Pushes Sustainable Sourcing
• Negative Sentiment: Erste Group Bank trimmed PepsiCo’s FY2026 and FY2027 earnings estimates, adding to concern that profit growth may be slower than previously expected. PepsiCo estimate cuts
• Negative Sentiment: Broader commentary that U.S. grocery unit sales are falling suggests a tougher demand backdrop for PepsiCo and other packaged-food companies. U.S. grocery unit sales falling
• Negative Sentiment: Coverage noting that PepsiCo stock is near a one-year low highlights ongoing investor concern about the company’s growth and margin outlook. Why PepsiCo’s stock is at a 1-year low

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.