PepsiCo, Inc. (PEP) is one of the world’s largest food and beverage companies, with a broad portfolio that includes snacks, soft drinks, and other refreshments sold worldwide. The company operates a global network of manufacturing, distribution, and sales activities, coordinating its business from its headquarters in Purchase, New York. The food and beverage giant has a market capitalization of $205.80 billion.
The company is expected to report its first-quarter (ended Mar. 21) results for fiscal 2026 on Apr. 16, before the market opens. Ahead of the earnings release, Wall Street analysts expect its bottom line to grow.
Analysts expect PepsiCo to report a profit of $1.54 per share on a diluted basis for Q1, up 4.1% year-over-year (YOY). The company has a solid track record of exceeding consensus estimates, topping them in three of the four trailing quarters. For the full fiscal year 2026, Wall Street analysts expect PEP’s diluted EPS to grow by 5.4% annually to $8.58, followed by a 6.5% improvement to $9.14 in fiscal 2027.
PepsiCo’s stock has been up modestly over the past year, as investors have rewarded its steady financials and gradual growth over volatile jumps. Over the past 52 weeks, the stock has gained 4.3%, and year-to-date (YTD), it has gained 5.7%. The broader S&P 500 Index ($SPX) has increased by 14.1% over the past 52 weeks, but declined 3.7% YTD. Therefore, the stock has underperformed the broader market over the past year but outperformed YTD.
We now compare PEP’s performance with that of its sector. The State Street Consumer Staples Select Sector SPDR ETF (XLP) has increased 3.6% over the past 52 weeks and 4.9% YTD. Therefore, the stock has slightly outperformed its sector over these periods.
To improve competitiveness and the “purchase frequency” of its brands, PepsiCo plans to cut prices on its food products from brands like Lay’s, Tostito’s, Doritos and Cheetos. The company’s volume decline, especially in the North American segment, has been concerning amid inflation, which has made customers cautious. However, the drinks segment remains a bright spot, as the company tries to expand its business to include more functional products.
Wall Street analysts have been bullish about PepsiCo’s prospects. Among the 22 analysts covering the stock, the consensus rating is “Moderate Buy.” The rating configuration is more bullish than it was three months ago, with eight “Strong Buy” ratings now, up from seven. The stock also has 13 “Holds” and one “Strong Sell.” The mean price target of $171.75 implies a 13.2% upside from current levels, while the Street-high price target of $191 implies 25.9% upside.
On the date of publication, Anushka Dutta did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
More news from Barchart
- Netflix Could Be Setting Up for a Big Show, But I’m Not Convinced the Move Will Be Up. Here’s Why.
- Analysts Expect Higher TPU Shipments. Why That Makes Broadcom Stock a Buy Now.
- Costco Is Launching Standalone Gas Stations. Why the Heck Does Wall Street Care?
- Is Mark Zuckerberg Using AI to Replace Himself as CEO? New Agent Paints Grim Picture for Workers as Job Cuts Loom.
