PepsiCo (NASDAQ:PEP) Hits New 52-Week High Following Earnings Beat

PepsiCo, Inc. (NASDAQ:PEP)’s share price reached a new 52-week high during mid-day trading on Tuesday after the company announced better than expected quarterly earnings. The company traded as high as $163.33 and last traded at $161.0080, with a volume of 7274809 shares. The stock had previously closed at $155.20.

The company reported $2.26 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.24 by $0.02. PepsiCo had a return on equity of 57.58% and a net margin of 7.82%.The company had revenue of $29.34 billion during the quarter, compared to the consensus estimate of $28.96 billion. During the same period in the previous year, the business earned $1.96 EPS. PepsiCo’s revenue for the quarter was up 5.6% on a year-over-year basis. PepsiCo has set its FY 2026 guidance at 8.550-8.710 EPS.

PepsiCo Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, January 6th. Shareholders of record on Friday, December 5th were issued a dividend of $1.4225 per share. The ex-dividend date of this dividend was Friday, December 5th. This represents a $5.69 dividend on an annualized basis and a yield of 3.5%. PepsiCo’s dividend payout ratio (DPR) is presently 108.17%.

PepsiCo News Summary

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: Q4 earnings and revenue beat consensus — adjusted EPS $2.26 vs $2.24 expected and revenue $29.34B vs $28.96B estimates, driven by resilient beverage sales and productivity improvements, supporting the upside in results. PepsiCo tops quarterly revenue estimates
• Positive Sentiment: Shareholder returns boosted — PepsiCo raised its dividend (~4%) and backed a large share‑buyback program (up to $10B), which is supportive for EPS and investor sentiment. PepsiCo Q4 Results Beat Street, Backs Outlook; Lifts Dividend, Plans $10 Bln Buyback
• Positive Sentiment: Beverage segment strength — management cited improving drink sales globally (including U.S. low‑sugar offerings) that helped offset weakness in snacks, a key driver of the earnings beat. PepsiCo earnings beat as drinks sales pick up
• Neutral Sentiment: Price cuts on popular snacks announced — PepsiCo plans to lower prices on Lay’s, Doritos, Cheetos and other snacks (reports cite cuts up to ~15%) to address consumer affordability; this is a strategic volume stimulus but creates uncertainty on near‑term margin impact. After Years of Increases, PepsiCo Pledges to Cut Prices on Snacks
• Negative Sentiment: Softer snack demand and volume declines remain a headwind — multiple reports highlight volume weakness in Frito‑Lay U.S. and broader snack categories, a structural concern investors will watch closely. PepsiCo lifts earnings despite softer demand and volume declines
• Negative Sentiment: Market reaction mixed — despite the beat and shareholder actions, some investors sold early on the price‑cut news and worries about GLP‑1 and secular shifts in snack consumption have been flagged by commentators, creating near‑term volatility risk. Jim Cramer on PepsiCo’s Recent Rally

Analyst Upgrades and Downgrades

PEP has been the topic of a number of recent analyst reports. Exane BNP Paribas raised shares of PepsiCo from a “hold” rating to a “strong-buy” rating in a research report on Friday, January 16th. DZ Bank raised PepsiCo from a “hold” rating to a “buy” rating and set a $167.00 price objective on the stock in a report on Tuesday, October 21st. UBS Group reduced their target price on PepsiCo from $172.00 to $170.00 and set a “buy” rating for the company in a report on Wednesday, January 14th. Citigroup raised their price target on PepsiCo from $165.00 to $170.00 and gave the stock a “buy” rating in a research note on Wednesday, December 17th. Finally, Wall Street Zen lowered PepsiCo from a “buy” rating to a “hold” rating in a research report on Saturday, December 27th. One research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating, ten have given a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Hold” and an average price target of $159.29.

Hedge Funds Weigh In On PepsiCo

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Evolution Wealth Management Inc. acquired a new position in shares of PepsiCo during the second quarter worth about $27,000. JCIC Asset Management Inc. purchased a new stake in PepsiCo in the 3rd quarter valued at approximately $27,000. MH & Associates Securities Management Corp ADV acquired a new position in PepsiCo during the 4th quarter worth approximately $29,000. Vermillion & White Wealth Management Group LLC raised its stake in shares of PepsiCo by 107.1% during the 2nd quarter. Vermillion & White Wealth Management Group LLC now owns 234 shares of the company’s stock worth $31,000 after buying an additional 121 shares in the last quarter. Finally, Imprint Wealth LLC acquired a new stake in shares of PepsiCo in the 3rd quarter valued at approximately $31,000. 73.07% of the stock is currently owned by hedge funds and other institutional investors.

PepsiCo Stock Performance

The stock has a 50 day moving average of $146.13 and a two-hundred day moving average of $145.67. The stock has a market capitalization of $219.20 billion, a PE ratio of 30.47, a P/E/G ratio of 5.05 and a beta of 0.40. The company has a debt-to-equity ratio of 2.26, a current ratio of 0.91 and a quick ratio of 0.72.

About PepsiCo

PepsiCo, Inc (NASDAQ: PEP) is a multinational food and beverage company headquartered in Purchase, New York. The company develops, manufactures, markets and sells a broad portfolio of branded food and beverage products, including carbonated and noncarbonated soft drinks, bottled water, sports drinks, juices, ready-to-drink teas and coffees, salty snacks, cereals, and other convenient foods. Its leading consumer brands include Pepsi, Mountain Dew, Gatorade, Tropicana, Quaker, Lay’s, Doritos and Cheetos, among others.

Formed through the 1965 merger of Pepsi-Cola and Frito-Lay, PepsiCo has grown into a global business with integrated manufacturing, distribution and marketing operations.