PepsiCo (NASDAQ:PEP) to Repurchase $10.00 billion in Shares

PepsiCo (NASDAQ:PEP) announced that its board has approved a share buyback plan on Tuesday, February 3rd, RTT News reports. The company plans to buyback $10.00 billion in outstanding shares. This buyback authorization allows the company to purchase up to 4.7% of its shares through open market purchases. Shares buyback plans are typically an indication that the company’s leadership believes its shares are undervalued.

PepsiCo Stock Up 2.0%

Shares of PEP opened at $166.18 on Thursday. The company has a debt-to-equity ratio of 2.06, a current ratio of 0.85 and a quick ratio of 0.72. The stock has a market capitalization of $227.22 billion, a price-to-earnings ratio of 27.70, a price-to-earnings-growth ratio of 5.35 and a beta of 0.40. PepsiCo has a 1 year low of $127.60 and a 1 year high of $167.94. The business’s 50 day simple moving average is $146.83 and its 200-day simple moving average is $145.95.

PepsiCo (NASDAQ:PEP) last announced its quarterly earnings results on Tuesday, February 3rd. The company reported $2.26 earnings per share for the quarter, topping the consensus estimate of $2.24 by $0.02. The company had revenue of $29.34 billion for the quarter, compared to analysts’ expectations of $28.96 billion. PepsiCo had a net margin of 8.77% and a return on equity of 57.92%. PepsiCo’s quarterly revenue was up 5.6% on a year-over-year basis. During the same quarter in the previous year, the business posted $1.96 earnings per share. PepsiCo has set its FY 2026 guidance at 8.550-8.710 EPS. As a group, equities analysts expect that PepsiCo will post 8.3 earnings per share for the current fiscal year.

PepsiCo Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, January 6th. Stockholders of record on Friday, December 5th were given a dividend of $1.4225 per share. This represents a $5.69 annualized dividend and a dividend yield of 3.4%. The ex-dividend date was Friday, December 5th. PepsiCo’s dividend payout ratio is currently 108.17%.

Wall Street Analysts Forecast Growth

PEP has been the subject of a number of recent analyst reports. Bank of America upped their price objective on PepsiCo from $150.00 to $155.00 and gave the stock a “neutral” rating in a research note on Friday, October 10th. Loop Capital set a $164.00 price target on PepsiCo in a report on Thursday, October 23rd. Rothschild & Co Redburn increased their price objective on shares of PepsiCo from $117.00 to $120.00 and gave the company a “sell” rating in a report on Monday, December 15th. JPMorgan Chase & Co. boosted their target price on shares of PepsiCo from $164.00 to $176.00 and gave the stock an “overweight” rating in a report on Wednesday. Finally, Weiss Ratings restated a “hold (c)” rating on shares of PepsiCo in a research report on Friday, January 9th. Nine analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company currently has an average rating of “Hold” and a consensus price target of $165.28.

Key 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

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.