Want to see PEP full AI Analyst Report?
Top Page
PepsiCo
(NASDAQ:PEP)
Select Model
Select Model
Rating:67Neutral
Price Target:
$134.00
▼(-5.81% Downside)
Action:Reiterated
Date:10/08/26
The score is driven primarily by strong underlying financial quality (durable margins and free-cash-flow generation) and supportive valuation (P/E ~16.2 with a ~4.69% dividend yield). These are partly offset by weak technicals (price below key moving averages with negative MACD) and earnings-call risks around near-term margin pressure from higher input costs and execution issues in North American beverages.
Positive Factors
Diversified branded portfolio and distribution
PepsiCo’s combination of branded snacks, foods, and beverages across retail and foodservice channels creates a diversified revenue base. Its manufacturing, distribution, and route-to-market capabilities support broad customer reach, recurring demand, and resilience across categories and geographies.
Negative Factors
Elevated leverage limits flexibility
PepsiCo’s sizable debt load and leverage of roughly 2.4 times equity reduce financial flexibility relative to a less levered structure. If operating conditions soften or rates remain higher for longer, more cash may be needed for debt obligations rather than growth or shareholder returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified branded portfolio and distribution
PepsiCo’s combination of branded snacks, foods, and beverages across retail and foodservice channels creates a diversified revenue base. Its manufacturing, distribution, and route-to-market capabilities support broad customer reach, recurring demand, and resilience across categories and geographies.
Read all positive factors
PepsiCo Key Performance Indicators (KPIs)
Any
Operating Income by Segment
Shows the profitability of each business unit, highlighting which segments drive earnings and where there might be challenges or opportunities for growth.
Shows the profitability of each business unit, highlighting which segments drive earnings and where there might be challenges or opportunities for growth.
Data provided by:
The Fly
The FlyPepsiCo (PEP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$171.66B
Dividend Yield4.61%
Average Volume (3M)9.31M
Price to Earnings (P/E)15.8
Beta (1Y)0.18
Revenue Growth6.36%
EPS Growth51.39%
CountryUS
Employees306,000
SectorConsumer Defensive
Sector Strength42
IndustryBeverages - Non-Alcoholic
Share Statistics
EPS (TTM)7.97
Shares Outstanding1,362,741,100
10 Day Avg. Volume10,619,341
30 Day Avg. Volume9,308,484
Financial Highlights & Ratios
PEG Ratio-1.75
Price to Book (P/B)9.63
Price to Sales (P/S)2.09
P/FCF Ratio25.63
Enterprise Value/Market Cap1.33
Enterprise Value/Revenue2.33
Enterprise Value/Gross Profit4.30
Enterprise Value/Ebitda12.04
Forecast
1Y Price Target
$140.21Price Target Upside-1.44% Downside
Rating ConsensusHold
Number of Analyst Covering16
EPS Forecast (FY)8.43
Revenue Forecast (FY)$99.20B
PepsiCo Business Overview & Revenue Model
Company Description
PepsiCo, Inc. is a global enterprise that creates, promotes, and supplies a diverse array of drinks and easy-to-prepare food items across the globe. Its operations are structured into seven primary divisions: Frito-Lay North America, Quaker Foods ...
How the Company Makes Money
PepsiCo primarily makes money by selling branded food and beverage products to customers (such as retailers, distributors, and foodservice operators), generating revenue from the manufacture and distribution of finished goods. Its key revenue stre...
PepsiCo Earnings Call Summary
Earnings Call Date:Oct 08, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Feb 11, 2027
Earnings Call Sentiment Positive
The call was broadly constructive, with strong Q3 organic revenue acceleration, solid global volumes, stellar international performance, a turnaround in North American snacks, and continued investment in growth. However, management acknowledged meaningful challenges from North American beverages and soft drinks, weaker-than-expected North American volume growth, rising commodity costs, the expiration of a tariff benefit, and Q4 margin pressure. The number and strength of the stated operational and financial positives outweighed the challenges.Positive Updates
Q3 Organic Revenue Growth Accelerated
Organic revenue increased 3.1% in Q3, the fastest growth rate since Q4 2023 and an important milestone above 3%. Reported revenue was north of 5%, core operating profit increased 3%, and EPS increased 2%.
Negative Updates
Q4 EPS Outlook Reduced by Margin Pressure
The Q4 guidance reduction was driven by margin performance below expectations rather than lower top-line expectations. Input costs are trending higher, and mix has been a headwind.
Read all updates
Q3-2026 Updates
Positive
Negative
Q3 Organic Revenue Growth Accelerated
Organic revenue increased 3.1% in Q3, the fastest growth rate since Q4 2023 and an important milestone above 3%. Reported revenue was north of 5%, core operating profit increased 3%, and EPS increased 2%.
Read all positive updates
Company Guidance
PepsiCo said it expects approximately 3% growth in organic sales, with sales expected to be robust; it expects sequential improvement as it goes into Q4 and especially as it goes into next year, while the margin piece is driving the guide down in EPS as input costs trend higher and mix has been a headwind. The company will sustain key investments, including double-digit A&M in both businesses in the U.S. this quarter and continued A&M investment going forward, while using structural cost reduction areas and revenue management tools to partially mitigate margin pressure in the fourth quarter, with benefits expected to start helping as it turns the calendar year. For next year's pricing, PepsiCo said it is putting guardrails in place so pricing is going to be below $25, and it expects commodities to continue to ramp up; it will provide more detail on its 2027 expectations in February when it reports the fourth quarter, and said it is not in a position today to provide a complete view.PepsiCo Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
62
Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 98.24B | 93.92B | 91.85B | 91.47B | 86.39B | 79.47B |
| Gross Profit | 53.22B | 50.86B | 50.11B | 49.59B | 45.82B | 42.40B |
| EBITDA | 19.03B | 15.54B | 16.68B | 15.75B | 14.92B | 14.90B |
| Net Income | 10.93B | 8.24B | 9.58B | 9.07B | 8.91B | 7.62B |
Balance Sheet | ||||||
| Total Assets | 111.98B | 107.40B | 99.47B | 100.50B | 92.19B | 92.38B |
| Cash, Cash Equivalents and Short-Term Investments | 11.16B | 9.53B | 9.27B | 10.00B | 5.35B | 5.99B |
| Total Debt | 51.88B | 49.90B | 44.95B | 44.66B | 39.55B | 40.78B |
| Total Liabilities | 89.49B | 86.85B | 81.30B | 81.86B | 74.91B | 76.23B |
| Stockholders Equity | 22.29B | 20.41B | 18.04B | 18.50B | 17.15B | 16.04B |
Cash Flow | ||||||
| Free Cash Flow | 10.47B | 7.67B | 7.19B | 7.92B | 5.60B | 6.99B |
| Operating Cash Flow | 14.57B | 12.09B | 12.51B | 13.44B | 10.81B | 11.62B |
| Investing Cash Flow | -3.99B | -6.88B | -5.47B | -5.50B | -2.43B | -3.27B |
| Financing Cash Flow | -7.88B | -4.98B | -7.56B | -3.01B | -8.52B | -10.78B |
PepsiCo Technical Analysis
Negative
142.27
Price Trends
134.77
Negative
137.32
Negative
144.09
Negative
Market Momentum
-2.82
Negative
37.38
Neutral
39.07
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PEP, the sentiment is Negative. The current price of 142.27 is above the 20-day moving average (MA) of 129.11, above the 50-day MA of 134.77, and below the 200-day MA of 144.09, indicating a bearish trend. The MACD of -2.82 indicates Negative momentum. The RSI at 37.38 is Neutral, neither overbought nor oversold. The STOCH value of 39.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PEP.
PepsiCo Risk Analysis
PepsiCo disclosed 28 risk factors in its most recent earnings report. PepsiCo reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
PepsiCo Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $85.49B | 40.04 | 24.96% | ― | 20.37% | 34.79% | |
76 Outperform | $378.84B | 26.44 | 42.99% | 2.39% | 7.42% | 17.58% | |
74 Outperform | $46.21B | 20.96 | 24.78% | 2.18% | 9.67% | 42.56% | |
71 Outperform | $2.86B | 16.41 | 32.60% | 10.44% | -1.80% | -5.87% | |
67 Neutral | $171.66B | 15.81 | 50.73% | 4.61% | 6.36% | 51.39% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
60 Neutral | $43.22B | 31.95 | 5.64% | 2.90% | 27.48% | -12.53% |
* Consumer Defensive Sector Average
PEP
PepsiCo
125.97
-17.12
-11.97%
KO
Coca-Cola
88.05
22.98
35.32%
KDP
Keurig Dr Pepper
31.76
6.16
24.04%
MNST
Monster Beverage
43.64
10.06
29.98%
FIZZ
National Beverage
30.52
-2.20
-6.73%
CCEP
Coca-Cola Europacific Partners
104.25
18.65
21.78%
PepsiCo Corporate Events
Executive/Board Changes
PepsiCo Adds Joaquin Duato as Independent Director
Positive
Sep 17, 2026
On September 17, 2026, PepsiCo’s Board of Directors elected Johnson Johnson Chairman and CEO Joaquin Duato as an independent director, with his appointment and Audit Committee service to begin on December 1, 2026. The move brings long-tenur...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.