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PepsiCo
(NASDAQ:PEP)
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Rating:69Neutral
Price Target:
$163.00
▲(3.38% Upside)
Action:Downgraded
Date:05/23/26
The score is driven primarily by solid underlying fundamentals (steady growth, strong profitability, and consistent cash generation) and a constructive earnings outlook with affirmed guidance and productivity support. Offsetting this are elevated leverage and currently weak technical momentum, while valuation is supported by a strong dividend but only moderate on earnings multiple.
Positive Factors
Steady revenue growth and resilient profitability
Consistent top-line growth with sector-leading gross margins provides durable operating leverage. High gross profit supports reinvestment in brands, innovation and marketing, enabling sustained share and margin recovery over multiple quarters despite temporary headwinds.
Negative Factors
Elevated leverage (debt >2x equity)
High debt amplifies returns but reduces balance-sheet resilience. With leverage above 2x equity, the company has less room to absorb shocks, faces greater interest-rate sensitivity and may need to allocate more cash to servicing debt rather than growth or shareholder returns if conditions deteriorate.
Read all positive and negative factors
Positive Factors
Negative Factors
Steady revenue growth and resilient profitability
Consistent top-line growth with sector-leading gross margins provides durable operating leverage. High gross profit supports reinvestment in brands, innovation and marketing, enabling sustained share and margin recovery over multiple quarters despite temporary headwinds.
Read all positive factors
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 (PEP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$197.12B
Dividend Yield3.91%
Average Volume (3M)8.33M
Price to Earnings (P/E)22.6
Beta (1Y)0.12
Revenue Growth4.29%
EPS Growth-6.45%
CountryUS
Employees319,000
SectorConsumer Defensive
Sector Strength42
IndustryBeverages - Non-Alcoholic
Share Statistics
EPS (TTM)6.38
Shares Outstanding1,366,768,300
10 Day Avg. Volume10,630,711
30 Day Avg. Volume8,333,400
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/Revenue2.47
Enterprise Value/Gross Profit4.57
Enterprise Value/Ebitda14.48
Forecast
1Y Price Target
$163.77Price Target Upside3.87% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering17
EPS Forecast (FY)8.63
Revenue Forecast (FY)$99.02B
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 through a mix of direct-to-store delivery and warehouse distribution to large retailers, convenience stores, e-commerce customers, and foodservice operators. Revenue is ge...
PepsiCo Earnings Call Summary
Earnings Call Date:Apr 16, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 09, 2026
Earnings Call Sentiment Positive
The call emphasized meaningful early signs of recovery across North America Foods and Beverages, solid international momentum, and tangible productivity gains that support guidance. Management acknowledged macro and geopolitical risks (inflationary pressure from the Iran conflict, SNAP changes, GLP-1 uncertainty) but believes near-term hedges, productivity initiatives and pricing/pack strategies provide sufficient flexibility to manage 2026. Execution risk remains the primary caveat.Positive Updates
Company Top-Line and Profitability Growth
Organic revenue increased ~2.6% in Q1 and core EPS rose 9%; core operating margin expanded by about 10 basis points year-over-year, demonstrating topline recovery with improved profitability.
Negative Updates
Inflation and Geopolitical Uncertainty
Management acknowledged inflationary pressure tied to the Iran conflict and broader macro volatility; magnitude and duration remain uncertain and could require a mix of price, productivity and growth offsets beyond current assumptions.
Read all updates
Q1-2026 Updates
Positive
Negative
Company Top-Line and Profitability Growth
Organic revenue increased ~2.6% in Q1 and core EPS rose 9%; core operating margin expanded by about 10 basis points year-over-year, demonstrating topline recovery with improved profitability.
Read all positive updates
Company Guidance
PepsiCo affirmed its 2026 guidance, saying it can mitigate near‑term inflation (supported by ~6–12 month hedges) and still expects to deliver the company targets embedded in guidance: organic sales growth of 2%–4% for the year (with the expectation to be toward the upper end in the back half) and continued margin progress; Q1 results included organic revenue +2.6%, core EPS +9% and core operating margin up ~10 basis points. Management called out North America Foods momentum (PFNA: volume +2%, unit growth ~4%, ~300 million incremental occasions in Q1 and an expectation of organic revenue growth and core operating margin expansion for the segment), PBNA reported total growth of ~9% (roughly +2% organic plus ~7 points from added platforms) with volumes roughly flat ex–case‑pack water transition and an expectation of positive case‑pack water volume in coming quarters, and they reiterated productivity, pricing/price‑pack architecture and leveraging scale as the levers to drive results.PepsiCo Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
58
Neutral
Cash Flow
76
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 95.45B | 93.92B | 91.85B | 91.47B | 86.39B | 79.47B |
| Gross Profit | 51.60B | 50.86B | 50.11B | 49.59B | 45.82B | 42.40B |
| EBITDA | 16.28B | 15.54B | 16.68B | 15.75B | 14.92B | 14.90B |
| Net Income | 8.74B | 8.24B | 9.58B | 9.07B | 8.91B | 7.62B |
Balance Sheet | ||||||
| Total Assets | 110.65B | 107.40B | 99.47B | 100.50B | 92.19B | 92.38B |
| Cash, Cash Equivalents and Short-Term Investments | 10.83B | 9.53B | 9.27B | 10.00B | 5.35B | 5.99B |
| Total Debt | 52.73B | 49.90B | 44.95B | 44.66B | 39.55B | 40.78B |
| Total Liabilities | 89.11B | 86.85B | 81.30B | 81.86B | 74.91B | 76.23B |
| Stockholders Equity | 21.38B | 20.41B | 18.04B | 18.50B | 17.15B | 16.04B |
Cash Flow | ||||||
| Free Cash Flow | 8.84B | 7.67B | 7.19B | 7.92B | 5.60B | 6.99B |
| Operating Cash Flow | 13.10B | 12.09B | 12.51B | 13.44B | 10.81B | 11.62B |
| Investing Cash Flow | -6.12B | -6.88B | -5.47B | -5.50B | -2.43B | -3.27B |
| Financing Cash Flow | -5.08B | -4.98B | -7.56B | -3.01B | -8.52B | -10.78B |
PepsiCo Technical Analysis
Neutral
157.67
Price Trends
146.44
Negative
151.91
Negative
147.48
Negative
Market Momentum
-1.54
Negative
52.36
Neutral
56.53
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PEP, the sentiment is Neutral. The current price of 157.67 is above the 20-day moving average (MA) of 141.99, above the 50-day MA of 146.44, and above the 200-day MA of 147.48, indicating a neutral trend. The MACD of -1.54 indicates Negative momentum. The RSI at 52.36 is Neutral, neither overbought nor oversold. The STOCH value of 56.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
83 Outperform | $95.45B | 46.92 | 25.46% | ― | 18.06% | 36.22% | |
78 Outperform | $362.01B | 26.38 | 43.62% | 2.92% | 6.74% | 27.16% | |
69 Neutral | $197.12B | 22.61 | 43.94% | 3.91% | 4.29% | -6.45% | |
69 Neutral | $47.25B | 21.90 | 24.48% | 2.52% | 6.82% | 44.68% | |
68 Neutral | $45.31B | 24.67 | 7.25% | 3.12% | 9.19% | 21.61% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
58 Neutral | $8.48B | 82.90 | 7.51% | ― | 123.34% | 32.74% |
* Consumer Defensive Sector Average
PEP
PepsiCo
144.22
14.89
11.51%
KO
Coca-Cola
84.14
15.09
21.85%
KDP
Keurig Dr Pepper
33.30
0.62
1.90%
MNST
Monster Beverage
97.60
34.75
55.29%
CCEP
Coca-Cola Europacific Partners
106.61
12.31
13.05%
CELH
Celsius Holdings
33.16
-12.53
-27.42%
PepsiCo Corporate Events
Business Operations and StrategyPrivate Placements and Financing
PepsiCo Renews and Extends Major Revolving Credit Facilities
Positive
May 22, 2026
On May 22, 2026, PepsiCo terminated its existing $5 billion 364‑day unsecured revolving credit facility and simultaneously entered into a new 364‑day unsecured revolving credit agreement of the same size with Citibank as administrative...
Executive/Board ChangesShareholder Meetings
PepsiCo shareholders reaffirm board, leadership and governance structure
Positive
May 8, 2026
On May 6, 2026, PepsiCo, Inc. held its 2026 Annual Meeting of Shareholders, at which investors elected 13 directors to the board, including CEO Ramon L. Laguarta, with strong majority support across the slate. Shareholders also ratified KPMG LLP a...
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.