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PepsiCo
(NASDAQ:PEP)
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Rating:74Outperform
Price Target:
$160.00
▲(17.10% Upside)
Action:Reiterated
Date:07/09/26
PEP scores well primarily on durable financial performance (strong margins and consistent, improving free cash flow) and a constructive earnings outlook driven by international strength and productivity, despite guidance skewing toward the low end. The main constraints are elevated leverage and a mixed technical picture with the stock trading below key longer-term moving averages; valuation is supported by a solid ~4% dividend yield and a moderate ~22x P/E.
Positive Factors
Margin Durability
PepsiCo’s consistently high gross margins (~53%–55%) and solid operating profitability reflect durable pricing power, brand strength and scale across snacks and beverages. These structural margins provide a recurring buffer versus commodity swings, support steady operating cash flow and enable sustained reinvestment in marketing, innovation and shareholder returns over multi-year horizons.
Negative Factors
Elevated Leverage
PepsiCo’s meaningful leverage—total debt near $53B TTM and debt‑to‑equity around 2.3x–2.5x—raises structural financial risk. Elevated leverage amplifies returns but increases sensitivity to rising interest rates, reduces capital flexibility for opportunistic investments or buybacks, and makes operating cash flow variability more consequential for credit metrics and long‑term strategic freedom.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin Durability
PepsiCo’s consistently high gross margins (~53%–55%) and solid operating profitability reflect durable pricing power, brand strength and scale across snacks and beverages. These structural margins provide a recurring buffer versus commodity swings, support steady operating cash flow and enable sustained reinvestment in marketing, innovation and shareholder returns over multi-year horizons.
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
$190.48B
Dividend Yield4.12%
Average Volume (3M)9.23M
Price to Earnings (P/E)18.3
Beta (1Y)0.13
Revenue Growth5.62%
EPS Growth38.93%
CountryUS
Employees306,000
SectorConsumer Defensive
Sector Strength42
IndustryBeverages - Non-Alcoholic
Share Statistics
EPS (TTM)7.64
Shares Outstanding1,364,891,600
10 Day Avg. Volume7,827,900
30 Day Avg. Volume9,230,004
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 Cap1.24
Enterprise Value/Revenue2.43
Enterprise Value/Gross Profit4.51
Enterprise Value/Ebitda12.65
Forecast
1Y Price Target
$158.06Price Target Upside15.68% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering18
EPS Forecast (FY)8.55
Revenue Forecast (FY)$99.01B
PepsiCo Business Overview & Revenue Model
Company Description
PepsiCo, Inc. (PEP) is a global food and beverage company that manufactures, markets, and sells convenient foods and beverages. Its operations span major categories including carbonated soft drinks and other beverages, salty and savory snacks, and...
How the Company Makes Money
PepsiCo primarily makes money by selling branded packaged foods and beverages to customers such as retailers (e.g., grocery, mass, club, convenience), e-commerce platforms, and foodservice operators (e.g., restaurants, cinemas, stadiums, and insti...
PepsiCo Earnings Call Summary
Earnings Call Date:Jul 09, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 13, 2026
Earnings Call Sentiment Positive
The call highlights solid top-line momentum driven by international strength, recovering global volumes, EPS growth, strong productivity and continued portfolio transformation. However, meaningful near-term headwinds remain in North America (PFNA flat volumes, PBNA margin pressure) and in impulse channels affected by higher gasoline prices and commodity inflation. Management reaffirmed full-year guidance, expects tariff refunds and additional productivity to help offset pressures, and outlined clear tactical optimizations for the second half.Positive Updates
Top-line and Volume Growth
Company reported nearly 7% net revenue growth in the first half of FY2026; global volume growth of +3% in foods and +2% in beverages (fastest volume growth since 2022). U.S. foods returned to volume growth and gained share in the category.
Negative Updates
North America Softness
North America (both foods and beverages) was softer than expected in Q2; management sees gradual improvement but at a more moderate pace than anticipated, which could push performance toward the lower end of full-year expectations.
Read all updates
Q2-2026 Updates
Positive
Negative
Top-line and Volume Growth
Company reported nearly 7% net revenue growth in the first half of FY2026; global volume growth of +3% in foods and +2% in beverages (fastest volume growth since 2022). U.S. foods returned to volume growth and gained share in the category.
Read all positive updates
Company Guidance
PepsiCo reaffirmed full‑year guidance but said results are more back‑loaded and could sit toward the low end of the EPS range; the company noted strong first‑half fundamentals — roughly 7% net revenue growth, global volume gains of ~3% in foods and ~2% in beverages, reported EPS +6% and constant‑currency EPS +3% — and said it has a line‑of‑sight to the low end of its 4%–6% long‑term organic sales range. Management expects international to remain strong (the international business will top ~$40B this year and drove a 1‑point operating‑margin gain in Q2), sees North America gradually improving, and flagged commodity pressure partly offset by tariff refund claims that should deliver about one full point of EPS growth for the year (roughly $0.07–$0.09 and with ~1 point likely in Q3); the company also plans higher North America A&M in H2 and continued productivity to fund growth.PepsiCo Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
63
Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 96.90B | 93.92B | 91.85B | 91.47B | 86.39B | 79.47B |
| Gross Profit | 52.29B | 50.86B | 50.11B | 49.59B | 45.82B | 42.40B |
| EBITDA | 18.64B | 15.54B | 16.68B | 15.75B | 14.92B | 14.90B |
| Net Income | 10.48B | 8.24B | 9.58B | 9.07B | 8.91B | 7.62B |
Balance Sheet | ||||||
| Total Assets | 112.19B | 107.40B | 99.47B | 100.50B | 92.19B | 92.38B |
| Cash, Cash Equivalents and Short-Term Investments | 10.72B | 9.53B | 9.27B | 10.00B | 5.35B | 5.99B |
| Total Debt | 53.21B | 49.90B | 44.95B | 44.66B | 39.55B | 40.78B |
| Total Liabilities | 89.92B | 86.85B | 81.30B | 81.86B | 74.91B | 76.23B |
| Stockholders Equity | 22.10B | 20.41B | 18.04B | 18.50B | 17.15B | 16.04B |
Cash Flow | ||||||
| Free Cash Flow | 9.28B | 7.67B | 7.19B | 7.92B | 5.60B | 6.99B |
| Operating Cash Flow | 13.46B | 12.09B | 12.51B | 13.44B | 10.81B | 11.62B |
| Investing Cash Flow | -4.14B | -6.88B | -5.47B | -5.50B | -2.43B | -3.27B |
| Financing Cash Flow | -6.98B | -4.98B | -7.56B | -3.01B | -8.52B | -10.78B |
PepsiCo Technical Analysis
Negative
136.64
Price Trends
140.85
Negative
146.75
Negative
147.49
Negative
Market Momentum
-0.33
Negative
48.61
Neutral
48.72
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 136.64 is below the 20-day moving average (MA) of 138.30, below the 50-day MA of 140.85, and below the 200-day MA of 147.49, indicating a neutral trend. The MACD of -0.33 indicates Negative momentum. The RSI at 48.61 is Neutral, neither overbought nor oversold. The STOCH value of 48.72 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 |
|---|---|---|---|---|---|---|---|
82 Outperform | $94.26B | 46.34 | 25.46% | ― | 18.06% | 36.22% | |
76 Outperform | $376.86B | 26.30 | 43.62% | 2.53% | 7.42% | 17.58% | |
74 Outperform | $190.48B | 18.27 | 50.36% | 4.21% | 5.62% | 38.93% | |
74 Outperform | $48.51B | 22.28 | 24.48% | 2.29% | 6.82% | 44.68% | |
68 Neutral | $42.34B | 23.05 | 7.25% | 3.10% | 9.19% | 21.61% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
58 Neutral | $7.47B | 73.03 | 7.51% | ― | 123.34% | 32.74% |
* Consumer Defensive Sector Average
PEP
PepsiCo
138.78
3.34
2.47%
KO
Coca-Cola
86.83
19.24
28.46%
KDP
Keurig Dr Pepper
30.75
-1.57
-4.86%
MNST
Monster Beverage
94.18
34.68
58.29%
CCEP
Coca-Cola Europacific Partners
108.58
19.64
22.08%
CELH
Celsius Holdings
29.15
-13.59
-31.80%
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.