PepsiCo reported its Q4 2025 results in line with revenue expectations and exceeded profit forecasts. At a share price of 168 USD, the stock appears attractive based on valuation multiples, and technical analysis suggests a potential rise in PepsiCo shares to 200 USD in 2026.
PepsiCo, Inc. reported revenue of 29.34 billion USD for Q4 2025, in line with analyst forecasts of between 29.1 and 29.3 billion USD. Organic growth was +2.1%, reflecting moderate real sales growth, with stronger reported figures partially attributed to currency effects.
The profit report exceeded expectations. GAAP EPS came in at 1.85 USD (compared to 1.11 USD a year ago), and Core EPS was 2.26 USD, slightly surpassing the market consensus of around 2.24 USD. Operating income rose to 3.56 billion USD, and net income increased to 2.56 billion USD. Management highlighted that the improvement was driven by effective cost control and enhanced efficiency, leading to margin growth despite a moderate revenue increase.
The 2026 outlook remains cautious, with the company expecting organic revenue growth of 2–4% and Core EPS growth (in constant currency) of 4–6%. PepsiCo plans to return 8.9 billion USD to shareholders, of which 7.9 billion USD will be in dividends and 1.0 billion USD in share repurchases. The dividend will increase by 4% to 5.92 USD per share, with a new buyback program of up to 10 billion USD approved through to 2030.
This article discusses PepsiCo, Inc.'s business model, its revenue sources, and quarterly financial results, providing a fundamental analysis of PEP. Expert forecasts for PepsiCo stock in 2026 are presented, along with an analysis of PepsiCo's stock performance, which serves as the basis for the 2026 stock forecast.
About PepsiCo, Inc.
PepsiCo, Inc. is an American multinational corporation that produces and sells a range of food, soft drinks, and snacks. Its portfolio includes well-known brands such as Cheetos, Gatorade, Lay’s, Mountain Dew, Pepsi, Quaker, and Tropicana. The company was founded in 1965 by merging Thе Pepsi-Сola Company and Frito-Lay. On 13 November 1972, PepsiCo, Inc. went public on the NYSE, and its shares have since traded under the PEP ticker symbol.
Image of PepsiCo, Inc.’s company name
PepsiCo, Inc.’s main revenue streams
PepsiCo divides its operations into three major segments and publishes information on each separately in its quarterly reports. Below are the segments in which the company operates:
- Frito-Lay: this segment focuses on producing and selling a variety of snacks. The range includes products from well-known brands, such as Cheetos, Doritos, Lay’s, Ruffles, and Tostitos. These high-margin products support PepsiCo’s leading position in the US salty snack market.
- Quaker Foods: this includes Quaker products, one of the pioneering brands in PepsiCo’s portfolio, which specialises in healthy eating. Quaker offers cereal bars, cereals, muesli, oatmeal, and more. This sector focuses on breakfast and healthy eating products.
- PepsiCo Beverages: this segment represents the entire range of PepsiCo’s drinks, including soft drinks (Mountain Dew, Pepsi), sports and energy drinks (Gatorade), purified drinking water (Aquafina), tea, and juices (Lipton, Tropicana). Drinks are the company’s core business, generating the majority of revenue.
In its reports, PepsiCo provides detailed information for each segment only in North America, while revenues from other regions are presented as a consolidated total. PepsiCo’s business model demonstrates that it operates across three markets simultaneously, enabling it to diversify its revenues.
PepsiCo, Inc. Q3 2024 results
PepsiCo reported its Q3 2024 financial results on 8 October. Below are the key figures from the report:
- Revenue: 23.32 billion USD (−0.6%)
- Net income: 2.93 billion USD (−5.0%)
- Earnings per Share: 2.13 USD (−4.9%)
- Operating profit: 3.87 billion USD (−3.6%)
Revenue by segment:
- Frito-Lay North America: 5.89 billion USD (−1.2%)
- PepsiCo Beverages North America: 7.17 billion USD (+0.1%)
- Quaker Foods North America: 648.00 million USD (−13.2%)
Revenue by region:
- Latin America: 2.91 billion USD (−4.6%)
- Europe: 3.94 billion USD (+6.4%)
- Africa, Middle East, and East Asia: 1.55 billion USD (−6.2%)
- Asia-Pacific: 1.19 billion USD (−1.4%)
PepsiCo’s management noted that the company demonstrates resilience despite challenging conditions. The crucial issues in Q3 were the recall of Quaker products over potential Salmonella contamination and geopolitical tensions in certain international markets.
CEO Ramon Laguarta emphasised that the company has remained profitable thanks to strict cost control and continued investment in its competitiveness. However, considering these challenges, PepsiCo has revised its Q4 and full-year 2024 revenue outlook. Revenue growth is now expected to fall below the previous projection of 4%, while the forecast for EPS growth remains at a minimum of 8%. Nonetheless, PepsiCo retains a positive outlook for the full year 2024.
Although its financial performance declined year-on-year, its stock price rose following the earnings release.
PepsiCo, Inc. Q4 2024 results
On 3 February 2025, PepsiCo released its Q4 2024 report. Its key financial highlights are outlined below:
- Revenue: 27.78 billion USD (−0.2%)
- Net income: 1.52 billion USD (+15.4%)
- Earnings per share: 1.11 USD (+18.1%)
- Operating profit: 2.25 billion USD (+33.7%)
Revenue by segment:
- Frito-Lay North America: 7.31 billion USD (−2.1%)
- PepsiCo Beverages North America: 7.91 billion USD (−2.1%)
- Quaker Foods North America: 874.00 million USD (−0.1%)
Revenue by region:
- Latin America: 3.69 billion USD (−6.9%)
- Europe: 4.47 billion USD (+6.2%)
- Africa, Middle East, and East Asia: 2.03 billion USD (+4.9%)
- Asia-Pacific: 1.48 billion USD (+2.1%)
In its commentary on the report, PepsiCo’s management highlighted the company’s current challenges and outlined its plans. One of the key factors affecting financial performance was a shift in consumer preferences, particularly in North America. Declining demand for salty snacks and beverages impacted revenue in these segments. However, management emphasised that the company is actively adapting its products to evolving trends, including the growing interest in healthier food. In this context, they underscored PepsiCo’s success in launching products such as Pepsi Zero Sugar and SunChips, which cater to changing consumer preferences.
The 2025 forecast included a low single-digit growth in organic revenue, and a mid-single-digit increase in adjusted EPS. Despite current challenges, this reflects moderate optimism about the company’s continued expansion. The company also announced a 5% dividend increase and a share buyback program, with a total budget of approximately 8.6 billion USD.
Additionally, PepsiCo reaffirmed its commitment to innovation, product diversification, and marketing initiatives aimed at sustaining future growth. Management expressed confidence that these measures would support improved performance in North America throughout the year.
PepsiCo, Inc. Q1 2025 results
PepsiCo published its Q1 2025 report on 24 April 2025. Below are the key figures from the report:
- Revenue: 17.92 billion USD (−1.8%)
- Net income: 1.84 billion USD (−10%)
- Earnings per share: 1.33 USD (−10%)
- Operating profit: 2.58 billion USD (−5%)
Revenue by segment:
- International Beverages Franchise: 0.76 billion USD (+3%)
- PepsiCo Beverages North America: 5.87 billion USD (unchanged)
- PepsiCo Foods North America: 6.21 billion USD (−1%)
Revenue by region:
- Europe, Middle East and Africa: 2.39 billion USD (−2%)
- Latin America Foods: 1.67 billion USD (−12%)
- Asia-Pacific Foods: 1.02 billion USD (−2%)
PepsiCo’s Q1 2025 report highlighted how the company is navigating challenges amid global trade disputes, shifting consumer preferences, and a volatile market environment. Revenue declined by 1.8% year-on-year, with EPS at 1.33 USD, slightly below analysts’ expectations.
Tariffs notably impacted results, particularly a 10% tariff on soda concentrate imports from Ireland and a 25% duty on aluminium imports. These measures increased production costs, compressing margins and prompting the company to revise its 2025 guidance.
In response to these challenges, PepsiCo launched strategic initiatives aimed at adapting to current market conditions. The company focused on products with higher added value, smaller packaging formats, and healthier attributes. In this context, the acquisition of the Poppi prebiotic soda brand for nearly 2 billion USD stands out, demonstrating PepsiCo’s commitment to expanding its healthy drinks portfolio.
For Q2 2025, PepsiCo’s management anticipated low single-digit organic revenue growth and a mid-single-digit increase in EPS in constant currency. Gradual improvement was expected in North America, supported by the implementation of ongoing commercial strategies, while the international segment remained a key driver of growth, with pronounced margin expansion.
Investors reacted negatively to PepsiCo’s Q1 2025 report, with declining sales in North America, particularly in the Quaker Foods division, and the downward revision of the full-year profit forecast as the main factors fuelling investor concerns. As a result, PepsiCo stock fell by 5% after the report’s release and continued to decline, extending a downward trend that began after its May 2023 peak. Analysts have also revised their estimates downwards.
PepsiCo, Inc. Q2 2025 results
On 17 July 2025, PepsiCo released its Q2 2025 report for the period ended 14 June. The key financial metrics are as follows:
- Organic revenue: 22.97 billion USD (+2%)
- Net income: 1.26 billion USD (−59%)
- Earnings per share: 0.92 USD (−58%)
- Operating profit: 1.79 billion USD (−56%)
Organic revenue by segment:
- International Beverages Franchise: 1.39 billion USD (+5%)
- PepsiCo Beverages North America: 6.87 billion USD (+1%)
- PepsiCo Foods North America: 6.32 billion USD (−2%)
Organic revenue by region:
- Europe, Middle East and Africa: 4.47 billion USD (+7%)
- Latin America Foods: 2.92 billion USD (+6%)
- Asia Pacific Foods: 1.00 billion USD (unchanged)
For Q2 2025, PepsiCo reported results above market expectations. Organic revenue grew by 2% year-on-year, while GAAP EPS fell to 0.92 USD due to a one-off impairment of intangible assets amounting to 1.86 billion USD related to the Rockstar and Be & Cheery brands. In terms of growth structure, the main contribution came from prices, while overall volumes remained weak.
In North America, the anticipated improvements did not materialise, with Foods showing a 2% year-on-year organic decline due to weak volumes. Beverages in North America increased by 1%, driven by gradual volume growth and gains in the market share of Pepsi and Pepsi Zero Sugar. Outside the US, performance was stronger. International beverages under the franchise model increased by 5%, with the entire international beverage business growing by 9%, driven by robust demand in Mexico, Brazil, Germany, Poland, France, Egypt, Turkey, Saudi Arabia, Pakistan, and Thailand.
The company reaffirmed its 2025 forecast, expecting low single-digit organic revenue growth and roughly flat core EPS in constant currency. Due to a reduction in currency impact, the negative FX effect for the year was lowered to -1.5 p.p. from the previously expected -3 p.p., which improves the USD core EPS outlook. Capital return plans remain unchanged – 8.6 billion USD for the year, including 7.6 billion USD in dividends and 1.0 billion USD through share buybacks. Management focused on restoring North America by emphasising value propositions, streamlining the product range, and implementing the One North America initiative, while anticipating that potential additional supply chain costs and tariff risks would be offset through productivity improvements and yield management.
PepsiCo, Inc. Q3 2025 results
On 9 October, PepsiCo released its Q3 2025 report for the period ended 6 September, which beat market expectations. The key financial indicators are as follows:
- Organic revenue: 23.94 billion USD (+3%)
- Net income: 2.60 billion USD (−11%)
- Earnings per share: 1.90 USD (−11%)
- Operating profit: 3.57 billion USD (−8%)
Organic revenue by segment:
- International Beverages Franchise: 1.29 billion USD (unchanged)
- PepsiCo Beverages North America: 7.32 billion USD (+2%)
- PepsiCo Foods North America: 6.53 billion USD (unchanged)
Organic revenue by region:
- Europe, Middle East and Africa: 5.02 billion USD (+9%)
- Latin America Foods: 2.66 billion USD (+2%)
- Asia Pacific Foods: 1.12 billion USD (+2%)
In Q3 2025, PepsiCo’s revenue reached 23.94 billion USD, up 3% year-on-year. Adjusted earnings per share stood at 2.29 USD, also exceeding analysts’ forecasts. The main contribution came from international operations and a recovery in beverage sales in North America.
Segment performance was mixed. In the Frito-Lay North America (snacks) segment, a slowdown was observed: declining sales volumes, although price increases partly offset the decline. This reflects weaker consumer activity in the US and a saturated snack market. At the same time, PepsiCo Beverages North America demonstrated positive dynamics – beverage sales increased thanks to strong performance in the Gatorade, Mountain Dew and Zero Sugar ranges, as well as expanded distribution both in-store and online.
International segments performed more strongly. In Latin America, revenue rose 2%, driven by price growth and stable demand in Mexico and Brazil. In Europe, conditions were more challenging: volumes fell slightly due to inflation and weak consumption in certain markets. However, favourable pricing effects kept revenue broadly in line with the prior year. In AMEA (Africa, the Middle East and Asia), robust growth was recorded – particularly in India, Saudi Arabia and China, where beverage and snack sales grew at double-digit rates.
This structure indicates that the international business has become the primary growth driver, offsetting weakness in North American snacks.
PepsiCo’s management reaffirmed a cautious full-year outlook. The company expects low single-digit organic growth and roughly the same earnings per share in constant currency as last year. The impact of currency fluctuations was estimated to be milder – around −0.5 percentage points, down from the previous estimate of −1.5 percentage points. This implies that core EPS for 2025 will decline by only 0.5% compared with 2024, an improvement on earlier expectations.
Despite the positive report, the company faced some challenges. Snack volumes in the US and certain beverage categories continued to be under pressure. Cost and logistics inflation also weighed on margins. Additionally, PepsiCo has attracted attention from activist investor Elliott Investment Management, which, according to media reports, has acquired a significant stake in the company and is advocating for greater efficiency and cost reductions.
PepsiCo, Inc. Q4 2025 results
On 3 February 2026, PepsiCo released its Q4 2025 results for the quarter ended 27 December, which exceeded expectations. Below are the key financial figures:
- Organic revenue: 29.34 billion USD (+2%)
- Net income: 2.54 billion USD (+67%)
- Earnings per share: 1.85 USD (+68%)
- Operating profit: 3.56 billion USD (+58%)
Organic revenue by segment:
- International Beverages Franchise: 1.58 billion USD (+2%)
- PepsiCo Beverages North America: 8.20 billion USD (+2%)
- PepsiCo Foods North America: 8.31 billion USD (−1%)
Organic revenue by region:
- Europe, Middle East and Africa: 6.08 billion USD (+5%)
- Latin America Foods: 3.68 billion USD (+5%)
- Asia Pacific Foods: 1.49 billion USD (+4%)
PepsiCo’s report was moderately strong and largely in line with analyst expectations. The company recorded revenue of 29.34 billion USD, surpassing consensus forecasts, while the adjusted earnings per share (Core EPS) was 2.26 USD, slightly above expectations. This indicates that PepsiCo maintains solid profitability even amid moderate growth. The quarter saw improvements in gross figures and margins, driven by organic revenue growth and enhanced operational efficiency in North America and international markets. Additionally, acquired brands such as Siete and Poppi contributed to overall sales growth. The sharp increase in net income (+67%) for Q4 2025 was largely due to a low base effect in 2024, when the company recorded significant non-cash expenses, including asset write-offs and restructuring costs, which artificially suppressed profits.
Management also highlighted plans to increase advertising spend in 2026 to support brand recognition and stimulate demand for new products.
PepsiCo reaffirmed its guidance for the 2026 financial year, expecting organic revenue growth in the range of 2–4% and Core EPS growth of 4–6% in constant currency, reflecting steady but moderate business growth amid the current economic environment.
The company also plans to continue returning capital to shareholders: it increased dividends by 4%, marking the 54th consecutive year of dividend increases, and announced a new share buyback program of up to 10 billion USD, which should support the stock price and demonstrate confidence in future cash flows.
Analysis of key valuation multiples for PepsiCo, Inc.
Below are the key valuation multiples for PepsiCo, Inc. based on Q4 of the 2025 financial year, calculated using a share price of 168 USD.
| Multiple |
What it indicates |
Value |
Commentary |
| P/E (TTM) |
The price of 1 USD of earnings over the past 12 months |
21.2 |
⬤ Lower than Coca-Cola, making PEP more attractive based on current earnings. |
| P/S (TTM) |
The price of 1 USD of annual revenue |
2.4 |
⬤ Appears cheap relative to competitors. |
| EV/Sales (TTM) |
Enterprise value to revenue, including debt |
2.8 |
⬤ Represents an effective valuation of the business relative to sales volume. |
| P/FCF (TTM) |
The price of 1 USD of free cash flow |
25.5 |
⬤ Cash flow is stable, but requires investment in production |
| FCF Yield (TTM) |
Free cash-flow yield for shareholders |
3.9% |
⬤ Yield is higher than Coca-Cola’s, making PEP shares more attractive. |
| EV/EBITDA (TTM) |
Enterprise value to EBITDA |
16.0 |
⬤ Indicates a fair valuation of operating profit before depreciation. |
| EV/EBIT (TTM) |
Enterprise value to operating profit |
20.0 |
⬤ A fair assessment of the company’s operational efficiency. |
| P/B |
Price to book value |
12.4 |
⬤ High valuation relative to book value due to debt burden and intangible assets, but this is typical for the sector. |
| Forward P/E |
Forward price-to-earnings (P/E) ratio |
19.1 |
⬤ Expected profit growth in 2026 makes the current valuation more attractive for long-term investors. |
| Net Debt/EBITDA |
Debt load relative to EBITDA |
2.18 |
⬤ Debt is under control, although the company is actively borrowing to modernise its supply chains. |
| Interest Coverage (TTM) |
Operating profit to interest expense ratio |
11.2 |
⬤ The ability to service debt remains strong. |
Valuation multiples analysis for PepsiCo, Inc. – conclusion
At a share price of 168 USD, PepsiCo shares appear undervalued relative to their historical averages and those of its competitor, Coca-Cola. The decline in PEP shares, despite strong financial results in 2025, has created an attractive opportunity for long-term investors. The increase in FCF yield to 3.9% makes the current dividend yield one of the most attractive in the consumer staples sector. A low Forward P/E provides a solid margin of safety in the event of market volatility in 2026. Overall, PepsiCo shares present a compelling opportunity for conservative investors, as the company offers the best combination of price and cash flow quality in its sector at current levels.
Analysis of insider activity in PepsiCo, Inc. shares
Over the past 12 months, there have been no open share purchases by PepsiCo's management, and all significant activity was related to sales and tax withholdings following the receipt of shares as part of compensation. The total volume of open sales (around 19.7 million USD) and tax withholdings (around 17.3 million USD) appears moderate for a company of this scale and does not indicate an aggressive stance.
It is also important to consider the broader corporate governance context at PepsiCo in 2025. The activity of institutional investor Elliott Management, which acquired a substantial stake (approximately 4 billion USD) and actively called for strategic changes, may have influenced stock movements and internal capital management decisions.
Key sales occurred in early March 2025, coinciding with only a short-term dip in share prices, after which the stock recovered and approached its 52-week high by February 2026. This suggests that the market did not view the insider actions as a negative signal regarding fundamental issues.
The lack of purchases may suggest a neutral stance by management on the current stock valuation. However, the structure of the transactions appears more aligned with the planned monetisation of compensation rather than a strategic exit from the stock. Overall, insider activity during this period appears neutral and does not indicate deterioration in business prospects.
Expert forecasts for PepsiCo, Inc. stock for 2026
- Barchart: 8 out of 22 analysts rated PepsiCo shares as a Strong Buy, 13 as Hold, and 1 as Strong Sell. The upper price target is 191 USD, and the lower bound is 130 USD.
- MarketBeat: 8 out of 20 specialists assigned a Buy rating to the shares, 11 gave a Hold recommendation, and 1 rated it as Sell. The upper price target is 191 USD, and the lower bound is 130 USD.
- TipRanks: 7 out of 16 analysts rated the shares as Buy, and 9 gave a Hold recommendation. The upper price target is 191 USD, and the lower bound is 156 USD.
- Stock Analysis: 2 out of 14 experts rated the shares as Strong Buy, 3 as Buy, and 9 as Hold. The upper price target is 182 USD, and the lower bound is 140 USD.
Expert forecasts for PepsiCo, Inc. stock for 2026
PepsiCo, Inc. stock price forecast for 2026
On the weekly chart, PepsiCo shares have encountered resistance at the 171 USD level. However, the Stochastic indicator is already in the overbought zone, suggesting a potential correction before further upward movement. Based on the current performance of PepsiCo shares, the potential price movements for 2026 are as follows:
The primary forecast for PepsiCo shares suggests testing support at 155 USD, followed by a rebound towards the resistance level at 200 USD.
The optimistic forecast for PepsiCo stock suggests continued price growth without a correction. In this scenario, a breakout above the historical high of 180 USD is expected, with further price gains towards the 200 USD resistance level.
PepsiCo, Inc. stock analysis and outlook for 2026
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