Erste Group Bank Lowers Earnings Estimates for PepsiCo

PepsiCo, Inc. (NASDAQ:PEP) – Stock analysts at Erste Group Bank cut their FY2026 earnings per share estimates for PepsiCo in a research report issued to clients and investors on Wednesday, July 15th. Erste Group Bank analyst S. Lingnau now anticipates that the company will earn $8.55 per share for the year, down from their previous estimate of $8.60. The consensus estimate for PepsiCo’s current full-year earnings is $8.58 per share. Erste Group Bank also issued estimates for PepsiCo’s FY2027 earnings at $9.02 EPS.

PepsiCo (NASDAQ:PEP) last issued its quarterly earnings data on Thursday, July 9th. The company reported $2.20 earnings per share for the quarter, beating the consensus estimate of $2.19 by $0.01. The business had revenue of $24.18 billion for the quarter, compared to analysts’ expectations of $23.95 billion. PepsiCo had a return on equity of 54.63% and a net margin of 10.78%.The business’s revenue was up 6.4% on a year-over-year basis. During the same period last year, the business earned $0.92 EPS. PepsiCo has set its FY 2026 guidance at 8.550-8.710 EPS.

Several other research firms have also recently weighed in on PEP. TD Cowen cut their price target on shares of PepsiCo from $150.00 to $145.00 and set a “hold” rating on the stock in a report on Friday, July 10th. HSBC increased their price objective on shares of PepsiCo from $175.00 to $176.00 and gave the company a “hold” rating in a research note on Friday, April 17th. Bank of America cut their target price on PepsiCo from $173.00 to $164.00 and set a “neutral” rating on the stock in a research note on Thursday, June 25th. UBS Group set a $159.00 target price on PepsiCo in a report on Thursday, July 9th. Finally, Citigroup downgraded PepsiCo from a “buy” rating to a “neutral” rating and decreased their price target for the company from $170.00 to $145.00 in a research report on Friday, July 10th. Seven investment analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, PepsiCo presently has an average rating of “Hold” and a consensus price target of $157.70.

PepsiCo Stock Performance

Shares of PEP stock opened at $139.43 on Friday. The firm has a 50-day moving average of $143.88 and a 200-day moving average of $151.31. The company has a market cap of $190.31 billion, a P/E ratio of 18.27, a P/E/G ratio of 2.97 and a beta of 0.36. The company has a debt-to-equity ratio of 1.91, a current ratio of 0.93 and a quick ratio of 0.74. PepsiCo has a one year low of $134.65 and a one year high of $171.48.

PepsiCo Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, June 30th. Shareholders of record on Friday, June 5th were paid a $1.48 dividend. The ex-dividend date was Friday, June 5th. This is a positive change from PepsiCo’s previous quarterly dividend of $1.42. This represents a $5.92 dividend on an annualized basis and a yield of 4.2%. PepsiCo’s dividend payout ratio is presently 77.59%.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of PEP. Captrust Financial Advisors grew its position in shares of PepsiCo by 3.6% in the third quarter. Captrust Financial Advisors now owns 554,798 shares of the company’s stock valued at $77,916,000 after purchasing an additional 19,218 shares in the last quarter. Swiss Life Asset Management Ltd lifted its holdings in PepsiCo by 11.4% during the 4th quarter. Swiss Life Asset Management Ltd now owns 415,271 shares of the company’s stock worth $59,600,000 after purchasing an additional 42,335 shares in the last quarter. Murphy Middleton Hinkle & Parker Inc. boosted its stake in PepsiCo by 622.3% in the 4th quarter. Murphy Middleton Hinkle & Parker Inc. now owns 35,603 shares of the company’s stock worth $5,110,000 after purchasing an additional 30,674 shares during the period. Allstate Corp boosted its stake in PepsiCo by 108.1% in the 4th quarter. Allstate Corp now owns 104,723 shares of the company’s stock worth $15,030,000 after purchasing an additional 54,405 shares during the period. Finally, National Pension Service grew its holdings in PepsiCo by 2.5% during the 4th quarter. National Pension Service now owns 3,143,939 shares of the company’s stock valued at $451,218,000 after buying an additional 77,051 shares in the last quarter. 73.07% of the stock is owned by institutional investors.

Trending Headlines about PepsiCo

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo India said first-half growth was robust and announced plans to build a new food manufacturing facility in Tamil Nadu, signaling continued expansion in a key international market. PepsiCo India sees robust growth in H1, will set up food manufacturing facility in Tamil Nadu
• Positive Sentiment: Management sounded cautiously optimistic about the second half, citing strong demand and saying PepsiCo is still maintaining its full-year outlook despite weather-related uncertainty and higher gas prices. PepsiCo cautiously optimistic on H2 amid robust demand, weather uncertainties: CEO
• Positive Sentiment: PepsiCo highlighted progress on sustainability, saying 70% of ingredients now come from sustainable sources and raising its target to 90% by 2030, which may support long-term brand and supply-chain positioning. PepsiCo (PEP) Pushes Sustainable Sourcing To 70% With A 90% Goal By 2030
• Neutral Sentiment: PepsiCo received continued attention from investors and analysts as a dividend and value stock, including a Seeking Alpha piece arguing for double-digit total return potential. PepsiCo: Dividend King With Double-Digit Total Return Potential
• Negative Sentiment: A Yahoo Finance report said U.S. grocery unit sales are falling, which is squeezing PepsiCo and other food companies and reinforces concerns about volume weakness in core markets. U.S. grocery unit sales falling, squeezing PepsiCo and food companies
• Negative Sentiment: Another report noted PepsiCo’s stock is at a 1-year low, reflecting broader investor concerns about slowing growth and the company’s recent mixed quarter. Why PepsiCo’s stock is at a 1-year low
• Negative Sentiment: RBC Capital reiterated a Sector Perform rating and trimmed its price target, suggesting analysts remain cautious after PepsiCo’s mixed results. RBC Capital Keeps Sector Perform Rating on PepsiCo (PEP)

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.