PepsiCo Is About to Report Q1 Earnings. Options Traders Expect a 4.3% Move in PEP Stock.

Snack food and beverage giant PepsiCo (PEP) is scheduled to announce its first-quarter results on April 16. PEP stock has risen about 9% year-to-date despite a volatile market amid geopolitical tensions. While PepsiCo’s North American business has been under pressure due to competition and macro uncertainty, investors are optimistic about the company’s turnaround efforts, including price cuts and supply chain optimization.

According to TipRanks’ Options Tool, options traders expect about a 4.3% move in either direction in PEP stock in reaction to Q1 2026 earnings. This implied move is lower than PepsiCo stock’s average post-earnings move (in absolute terms) of 5.4% over the past four quarters.

Meanwhile, Wall Street expects PepsiCo to report EPS (earnings per share) of $1.55 for Q1 2026, reflecting a 5% year-over-year growth. Revenue is expected to rise 6% to $18.95 billion.

Investors will look forward to management’s updates on the demand backdrop and turnaround efforts.

Analysts’ Views Ahead of PepsiCo’s Q1 Earnings

Ahead of Q1 earnings, UBS analyst Peter Grom reiterated a Buy rating on PepsiCo stock with a price target of $186. The analyst expects PEP’s Q1 results to be broadly in line with expectations, with organic revenue growth, especially in the PepsiCo Foods North America (PFNA) segment, showing continued modest progress. However, Grom expects PepsiCo to see incremental pressures from forex changes and input costs, and “would not be surprised to see guidance move to the lower end.”

Grom noted that macro and geopolitical worries related to input costs and consumer pressure have impacted the stock recently. He added that some investors continue to doubt whether PepsiCo’s initiatives on pricing and innovation will drive sustained improvement in North America. While Grom understands investors’ concerns, he thinks risk/reward tilts to the upside from current levels, given improving trends in recent weeks.

Meanwhile, Bank of America analyst Peter T. Galbo reiterated a Hold rating on PEP stock with a price target of $173. The analyst maintained his Q1 2026 and full-year EPS estimates of $1.53 and $8.60, respectively, but updated the intra-year timing of the effective tax rate and selling, general, and administrative (SG&A) expenses.

Notably, Galbo now expects a lower effective tax rate and heavier SG&A growth in the first half of 2026. Overall, the analyst expects Q1 2026 results to meet expectations, with investors focusing on three key aspects:

• The potential operational impact of geopolitical tensions in the Middle East.
• Early commentary on the execution of the PFNA turnaround initiatives, including lower pricing on iconic brands, funded by productivity savings.
• Updates on growth initiatives at PepsiCo Beverages North America (PBNA).

AI Analyst Is Bullish on PEP Stock

Interestingly, TipRanks’ AI Analyst has an Outperform rating on PepsiCo stock with a price target of $183, indicating 17.4% upside potential. The AI Analyst’s rating is based on solid underlying financials (durable margins and reliable cash flows), partially offset by leverage.

Is PepsiCo Stock a Buy, Hold, or Sell?

Heading into Q1 results, Wall Street has a Moderate Buy consensus rating on PepsiCo stock based on seven Buys and eight Holds. The average PEP stock price target of $173.36 indicates 11.2% upside potential. PEP stock offers a dividend yield of 3.65%.