PepsiCo (PEP)
NASDAQ:PEP
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PepsiCo
(NASDAQ:PEP)
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Rating:70Outperform
Price Target:
$183.00
▲(21.29% Upside)
Action:UpgradedDate:02/12/26
The score is driven primarily by solid underlying financial quality (durable margins and reliable cash generation) tempered by leverage and 2025 pressure on growth and free cash flow. Technicals are strong but look overextended, and valuation is a headwind due to a higher P/E despite an attractive dividend. Earnings-call guidance was constructive with clear near-term levers, offset by identifiable category and execution risks.
Positive Factors
Durable margins
Consistent mid‑50% gross margins and resilient operating profitability indicate durable pricing power and cost structure. This margin base supports sustainable operating cash flow, funds reinvestment in innovation and marketing, and helps the company withstand commodity or input cost cycles over months.
Negative Factors
High leverage
Material leverage (debt >2x equity) limits strategic flexibility and raises refinancing and interest‑rate sensitivity. With elevated debt levels, the company has less cushion to accelerate investment or absorb shocks, making multi‑quarter strategic execution and discretionary spend riskier if macro rates remain high.
Read all positive and negative factors
Positive Factors
Negative Factors
Durable margins
Consistent mid‑50% gross margins and resilient operating profitability indicate durable pricing power and cost structure. This margin base supports sustainable operating cash flow, funds reinvestment in innovation and marketing, and helps the company withstand commodity or input cost cycles over months.
Read all positive factors
PepsiCo (PEP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$206.20B
Dividend Yield3.91%
Average Volume (3M)6.88M
Price to Earnings (P/E)23.9
Beta (1Y)0.12
Revenue Growth0.48%
EPS Growth-22.61%
CountryUS
Employees319,000
SectorConsumer Defensive
Sector Strength42
IndustryBeverages - Non-Alcoholic
Share Statistics
EPS (TTM)2.26
Shares Outstanding1,366,649,000
10 Day Avg. Volume6,142,887
30 Day Avg. Volume6,875,328
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 Cap1.20
Enterprise Value/Revenue2.63
Enterprise Value/Gross Profit4.85
Enterprise Value/Ebitda15.87
Forecast
1Y Price Target
$174.46Price Target Upside15.63% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
EPS Forecast (FY)8.63
Revenue Forecast (FY)$98.55B
PepsiCo Business Overview & Revenue Model
Company Description
PepsiCo, Inc. manufactures, markets, distributes, and sells various beverages and convenient foods worldwide. The company operates through seven segments: Frito-Lay North America; Quaker Foods North America; PepsiCo Beverages North America; Latin ...
How the Company Makes Money
PepsiCo generates revenue through the sale of its beverages and snack foods. The company's revenue model is primarily based on product sales, with key revenue streams coming from its carbonated soft drinks, non-carbonated beverages, and a variety ...
PepsiCo Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down sales across different business units, indicating which areas are growing or shrinking and how diversified the company’s revenue streams are.
Breaks down sales across different business units, indicating which areas are growing or shrinking and how diversified the company’s revenue streams are.
Data provided by:
The Fly
The FlyPepsiCo Earnings Call Summary
Earnings Call Date:Feb 03, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 28, 2026
Earnings Call Sentiment Positive
The call emphasized multiple positive, actionable drivers—targeted affordability investments, double‑digit shelf gains, productivity funding, large brand restagings, innovation successes and incremental growth from acquisitions—while acknowledging headwinds such as a large advertising decline in 2025, GLP‑1 adoption risk, some brand (Mountain Dew) and regional softness, and execution complexity in distributor/integration work. On balance, management painted a constructive outlook with several near‑term growth levers and manageable risks.Positive Updates
PFNA: Planned Volume, Net Revenue and Margin Growth
Management expects Frito-Lay North America (PFNA) to grow volume, net revenue and operating margin in 2026 driven by targeted affordability investments, innovation and productivity funding; leadership said volume and net revenue growth will come early in the year.
Negative Updates
Advertising Spend Decline in 2025
Advertising was down double‑digits in 2025 (cited as approximately a $500 million decline); management expects advertising to increase in 2026 as they reinvest behind growth and messaging.
Read all updates
Q4-2025 Updates
Positive
Negative
PFNA: Planned Volume, Net Revenue and Margin Growth
Management expects Frito-Lay North America (PFNA) to grow volume, net revenue and operating margin in 2026 driven by targeted affordability investments, innovation and productivity funding; leadership said volume and net revenue growth will come early in the year.
Read all positive updates
Company Guidance
On the Feb. 3, 2026 call management said 2026 guidance is built off Q4 trends: Frito‑Lay North America (PFNA) is expected to grow volume, net revenue and operating margin (PFNA operating margins to expand), with volume and net‑revenue gains skewing earlier in the year; overall organic sales should strengthen in the second half while EPS is broadly balanced H1/H2. International is expected to deliver mid‑single‑digit growth, Frito‑Lay expects double‑digit average space gains at retailer resets, and more than 70% of the U.S. food portfolio is already single‑serve; prior acquisitions convert to organic during the year (Siete ~March, poppi ~July, Alani Nu late year). Management also noted advertising was down roughly $500 million in 2025 from A&M efficiencies but said ad spend will step up to support growth, and that Q4 productivity gains will help fund the targeted price/affordability and innovation investments.PepsiCo Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
62
Positive
Cash Flow
66
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 93.92B | 91.85B | 91.47B | 86.39B | 79.47B |
| Gross Profit | 50.86B | 50.11B | 49.59B | 45.82B | 42.40B |
| EBITDA | 15.54B | 16.68B | 15.75B | 14.92B | 14.90B |
| Net Income | 8.24B | 9.58B | 9.07B | 8.91B | 7.62B |
Balance Sheet | |||||
| Total Assets | 107.40B | 99.47B | 100.50B | 92.19B | 92.38B |
| Cash, Cash Equivalents and Short-Term Investments | 9.53B | 9.27B | 10.00B | 5.35B | 5.99B |
| Total Debt | 49.90B | 44.95B | 44.66B | 39.55B | 40.78B |
| Total Liabilities | 86.85B | 81.30B | 81.86B | 74.91B | 76.23B |
| Stockholders Equity | 20.41B | 18.04B | 18.50B | 17.15B | 16.04B |
Cash Flow | |||||
| Free Cash Flow | 7.67B | 7.19B | 7.92B | 5.60B | 6.99B |
| Operating Cash Flow | 12.09B | 12.51B | 13.44B | 10.81B | 11.62B |
| Investing Cash Flow | -6.88B | -5.47B | -5.50B | -2.43B | -3.27B |
| Financing Cash Flow | -4.98B | -7.56B | -3.01B | -8.52B | -10.78B |
PepsiCo Technical Analysis
Negative
150.88
Price Trends
156.72
Negative
150.20
Positive
144.21
Positive
Market Momentum
-1.97
Positive
33.58
Neutral
6.18
Positive
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 150.88 is below the 20-day moving average (MA) of 160.16, below the 50-day MA of 156.72, and above the 200-day MA of 144.21, indicating a neutral trend. The MACD of -1.97 indicates Positive momentum. The RSI at 33.58 is Neutral, neither overbought nor oversold. The STOCH value of 6.18 is Positive, 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $72.35B | 39.27 | 25.65% | ― | 7.62% | 12.77% | |
76 Outperform | $323.03B | 22.95 | 44.35% | 2.92% | 2.93% | 25.42% | |
70 Outperform | $206.20B | 23.86 | 43.03% | 3.91% | 0.48% | -22.61% | |
69 Neutral | $41.59B | 18.13 | 24.48% | 2.52% | 9.65% | -4.26% | |
63 Neutral | $10.19B | 99.61 | 4.66% | ― | 55.07% | -87.01% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
62 Neutral | $36.07B | 18.30 | 8.29% | 3.12% | 6.77% | -29.84% |
* Consumer Defensive Sector Average
PEP
PepsiCo
150.88
10.94
7.82%
KO
Coca-Cola
75.11
8.24
12.32%
KDP
Keurig Dr Pepper
26.55
-6.25
-19.05%
MNST
Monster Beverage
73.96
16.12
27.87%
CCEP
Coca-Cola Europacific Partners
92.59
10.61
12.94%
CELH
Celsius Holdings
39.65
4.39
12.45%
PepsiCo Corporate Events
Business Operations and StrategyPrivate Placements and Financing
PepsiCo Issues €2.5 Billion Euro-Denominated Senior Notes
Positive
Feb 11, 2026
On February 4, 2026, PepsiCo announced a euro-denominated senior notes offering comprising €500 million in floating rate notes due 2028, €650 million of 3.300% notes due 2034, €850 million of 3.700% notes due 2038 and €500 ...
Business Operations and StrategyExecutive/Board Changes
PepsiCo Announces Leadership Change Effective December 28
Neutral
Dec 15, 2025
On December 15, 2025, PepsiCo announced a significant leadership change, with Steven Williams, the current CEO of North America, transitioning to the role of Executive Vice President Vice Chairman, Global Chief Commercial Officer Corporate Affai...
Business Operations and StrategyFinancial Disclosures
PepsiCo Unveils Strategic Priorities for 2026 Growth
Positive
Dec 8, 2025
On December 8, 2025, PepsiCo announced its strategic priorities to enhance shareholder value, including a preliminary financial outlook for 2026. The company plans to accelerate organic revenue growth, improve core operating margins, and optimize ...
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.