Purchase, New York-based PepsiCo, Inc. (PEP) engages in the manufacture, marketing, distribution, and sale of various beverages and convenient foods worldwide. The company has a market capitalization of $189.4 billion and operates through PepsiCo Foods North America, PepsiCo Beverages North America, International Beverages Franchise, Europe, the Middle East and Africa, Latin America Foods, and Asia Pacific Foods segments.
PEP stock has lagged behind the broader market over the past year, declining 1.7% compared to the S&P 500 Index’s ($SPX) 21.5% surge. However, in 2026, the stock has fallen by nearly 3.5%, outperforming the SPX’s 12.6% rise.
Focusing on its industry benchmark, the State Street Consumer Staples Select Sector SPDR ETF (XLP) has risen 4.3% over the past year, outpacing the stock. In 2026, XLP has grown 9.6% and has also rallied the stock.
On July 9, PEP stock fell 3.3% following the release of its mixed Q2 2026 earnings. The company’s revenue for the quarter rose 6.4% from the previous year’s quarter to $24.2 billion and marginally surpassed the Street’s estimates. Moreover, its adjusted EPS came in at $2.20, falling short of Wall Street’s forecasts. The company still expects a 1.5% negative impact from foreign exchange rates, which, along with the earnings miss, weighed down on investor sentiment, leading to a decline in its share price.
For the current year, which ends in December, analysts expect PEP’s EPS to rise 5.3% to $8.57 on a diluted basis. The company surpassed the consensus estimate in each of the last four quarters.
Among the 23 analysts covering PEP stock, the consensus is a “Moderate Buy.” That’s based on seven “Strong Buy” ratings, 15 “Holds,” and one “Strong Sell.”
The configuration has grown more bearish over the past month, with the stock now having seven “Strong Buy” ratings, down from eight a month prior.
On July 22, Barclays analyst Lauren Lieberman maintained a “Hold” rating on PepsiCo and set a price target of $142.
PEP’s mean price target of $155.09 offers a 12% premium compared to the current market price. Its Street-high target of $183 implies a robust 32.2% upside from current levels.
