PepsiCo maintains 2026 guidance. Can PEP shares rise to 180 USD?

PepsiCo reported Q1 2026 results slightly ahead of market expectations for both revenue and earnings and maintained its guidance for the 2026 financial year. Against this backdrop, PEP shares retain upside potential towards 180 USD and possibly higher.

PepsiCo, Inc. (NASDAQ: PEP) increased revenue to 19.44 billion USD in Q1 2026, exceeding the analyst consensus of approximately 18.94 billion USD. Organic revenue grew by 2.6%, indicating moderate underlying business expansion. Earnings also came in ahead of expectations. GAAP EPS was 1.70 USD, while Core EPS rose to 1.61 USD, compared with the consensus estimate of around 1.55 USD.

Revenue growth was primarily supported by moderate price increases, improved performance in PepsiCo Foods North America, and strong international results. In the North American food segment, organic revenue rose 1%, while sales volumes increased 2%, driven by snacks. Meanwhile, EMEA and Asia Pacific Foods recorded organic revenue growth of 7%. Efficiency measures and cost control initiatives also supported profitability.

Results were partially offset by weaker beverage volumes in North America and higher input costs in certain segments. In PepsiCo Beverages North America, sales volumes declined by 2.5%, while Latin America Foods saw volumes fall by 2%, primarily due to Mexico. Additionally, higher raw material and operating expenses weighed on some business units.

The company maintained its 2026 guidance unchanged, reflecting a cautious but stable outlook. PepsiCo continues to expect organic revenue growth of 2–4% and core EPS growth of 4–6% in constant currency. The company also plans to return approximately 8.9 billion USD to shareholders, including 7.9 billion USD in dividends and 1.0 billion USD in share buybacks. Management acknowledged that the external environment has become more volatile due to geopolitical risks and the potential for rising costs.

This article reviews PepsiCo’s business model and revenue structure, presenting an overview of its quarterly performance. It also provides a fundamental analysis for PEP shares, outlines expert forecasts for PepsiCo in 2026 and examines recent price dynamics, forming the basis for the outlook for PepsiCo shares in 2026.

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.

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 financial 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 financial results

PepsiCo released its Q4 2024 financial results on 3 February 2025. Below are the key figures from the report:

• 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 financial results

PepsiCo published its Q1 2025 financial results 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 financial results

On 17 July 2025, PepsiCo released its Q2 2025 financial results for the quarter 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 financial results

On 9 October, PepsiCo released its Q3 2025 financial report for the quarter ended 6 September, with results beating 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 financial results

On 3 February 2026, PepsiCo released its Q4 2025 report for the quarter ended 27 December, with results exceeding expectations once again. 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 broadly in line with analyst expectations. The company reported revenue of 29.34 billion USD, above the consensus forecast, while adjusted earnings per share (Core EPS) came in at 2.26 USD, also slightly exceeding projections. This indicates that PepsiCo continues to maintain solid profitability even amid moderate growth. The quarter saw improvements in gross metrics and margins, supported by organic revenue growth and enhanced operational efficiency in North America and international markets. Acquired brands such as Siete and Poppi also began contributing to overall sales and revenue. The sharp increase in net income (+67%) for Q4 2025 was driven by a low base effect in 2024. During that period, the company recorded significant non-cash expenses, including asset write-offs and restructuring costs, which artificially depressed profits.

Management also noted plans to increase advertising expenditure in 2026 to support brand recognition and stimulate demand for new products.

PepsiCo confirmed 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 moderate but stable business expansion in the current economic environment.

The company also intended to continue returning capital to shareholders: it increased dividends by 4% – marking the 54th consecutive year of dividend growth – and announced a new share buyback program of up to 10 billion USD, which was expected to support the stock price and demonstrate confidence in future cash flows.

PepsiCo, Inc. Q1 2026 financial results

On 16 April, PepsiCo released its Q1 2026 results for the quarter ended 21 March. The key financial figures are as follows:

• Organic revenue: 19.44 billion USD (+9%)
• Net income: 2.33 billion USD (+27%)
• Earnings per share: 1.70 USD (+27%)
• Operating profit: 3.21 billion USD (+24%)

Organic revenue by segment:

• International Beverages Franchise: 0.82 billion USD (+5%)
• PepsiCo Beverages North America: 6.39 billion USD (+2%)
• PepsiCo Foods North America: 6.33 billion USD (+1%)

Organic revenue by region:

• Europe, Middle East and Africa: 2.82 billion USD (+7%)
• Latin America Foods: 1.93 billion USD (+3%)
• Asia Pacific Foods: 1.14 billion USD (+7%)

PepsiCo’s Q1 2026 results were moderately strong and slightly ahead of market expectations. Revenue totalled 19.44 billion USD, compared with the analyst consensus of approximately 18.94 billion USD, while core EPS reached 1.61 USD versus expectations of around 1.55 USD. Organic revenue increased by 2.6%, demonstrating resilient demand even in a more challenging consumer environment.

Performance was primarily supported by stabilisation in the core US market and sustained demand outside the US. The North American food segment showed moderate improvement, driven by flexible pricing, product innovation, and portfolio expansion. International operations maintained positive momentum, remaining an important source of growth. The North American beverages segment also reported revenue improvement, supported by new brand launches and expanded distribution channels, although physical sales volumes remain under pressure.

Management maintained its guidance for the 2026 financial year, continuing to expect organic revenue growth of 2–4% and core constant currency EPS growth of 4–6%. On a reported basis, this implies net revenue growth of 4–6% and core EPS growth of 5–7%, taking into account currency effects and the impact of prior-year transactions. At the same time, the company reaffirmed its plan to return approximately 8.9 billion USD to shareholders, including 7.9 billion USD in dividends and 1.0 billion USD through share buybacks.

Analysis of key valuation multiples for PepsiCo, Inc.

Below are the key valuation multiples for PepsiCo, Inc. based on Q1 2026 results, calculated at a share price of 153 USD.

PepsiCo shares currently appear to represent a high-quality investment, though not a cheap one. The company’s key strength lies in the resilience of its business model, with earnings continuing to grow, and the forward P/E is already noticeably below the trailing P/E, indicating that the market still expects further improvement in performance.

Overall, PepsiCo shares are better suited to investors seeking exposure to a reliable business with moderate growth potential, provided the company can sustain revenue growth, stabilise operations in North America, and maintain healthy cash flow.

Expert forecasts for PepsiCo, Inc. stock for 2026

• Barchart: 8 out of 22 analysts rated PepsiCo shares as Strong Buy, 13 as Hold, and 1 as Strong Sell. The upper price target is 195 USD, and the lower bound is 130 USD.
• MarketBeat: 8 out of 20 analysts assigned a Buy rating, 11 recommended Hold, and 1 recommended Sell. The upper price target is 195 USD, and the lower bound is 130 USD.
• TipRanks: 7 out of 15 analysts rated the shares as Buy, and 8 as Hold. The upper price target is 191 USD, and the lower bound is 158 USD.
• Stock Analysis: 3 out of 14 experts rated PepsiCo shares as Strong Buy, 3 as Buy, and 8 as Hold. The upper price target is 186 USD, and the lower bound is 145 USD.

PepsiCo, Inc. stock price forecast for 2026

On the daily chart, PepsiCo shares have broken above the 200-day moving average and are holding above it, which may signal the start of a new upward wave following the decline that started in May 2025. Based on the current price action in PepsiCo shares, the potential scenarios for 2026 are as follows:

The primary forecast for PepsiCo shares assumes a break above the 160 USD resistance level. This could trigger further gains towards the historical high at 180 USD. If resistance at 180 USD is also breached, the next upside target would be 200 USD.

The alternative forecast for PepsiCo stock assumes a break below support at 150 USD. In this scenario, PEP would fall back below the 200-day moving average, signalling the beginning of another downward wave, with the share price potentially declining towards 125 USD.

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