PepsiCo, Inc. (PEP) AI Stock Analysis

PepsiCo, Inc. manufactures, markets, and distributes beverages and convenient foods worldwide. Operating through seven segments, including Frito-Lay North America, Quaker Foods North America, and PepsiCo Beverages North America, the company offers a diverse product portfolio. Its snacks include potato chips, tortilla chips, and cheese-flavored snacks under brands like Lay's and Doritos, alongside breakfast staples like Quaker Oats and Cap'n Crunch cereals. In beverages, PepsiCo produces Pepsi cola, Gatorade sports drinks, Tropicana juices, and ready-to-drink teas and coffees. Products are distributed to grocery stores, convenience stores, restaurants, and retail outlets, as well as directly through e-commerce platforms.

PepsiCo expanded annual revenue from $79.47B in FY2021 to $93.92B in FY2025, producing a 5-year revenue CAGR of 5.9%. Annual revenue growth moderated from 12.9% in FY2021 to 0.4% in FY2024 and 2.3% in FY2025. Over the same period, gross margin remained steady at 54.1% in FY2025, while operating margin shifted from 14.0% in FY2021 to 12.2% in FY2025. Annual net income was $8.24B in FY2025, down from $9.58B in FY2024. In the latest quarter ending September 30, 2026, quarterly revenue increased 5.6% year-over-year and quarterly earnings grew 17.4% year-over-year, bringing trailing twelve-month revenue to $98.24B.

As of September 30, 2026, PepsiCo held $11.16B in cash and short-term investments against $51.88B in total debt, resulting in net debt of $40.72B. Its current ratio was 0.94, and its debt-to-equity ratio reached 2.33 on shareholders' equity of $22.29B. In FY2025, the company generated $12.09B in operating cash flow and $7.67B in free cash flow. Capital allocation in FY2025 included $4.42B in capital expenditures, $7.64B in dividends paid, and $1.00B in share buybacks.

At its last close of $131.49 on October 16, 2026, PepsiCo traded at a trailing P/E of 16.5x and a forward P/E of 14.9x, both below the median of its Nasdaq-100 Consumer Defensive peers of 38.7x and 26.0x, respectively. The company's enterprise value of $225.86B reflects an EV/EBITDA multiple of 12.1x, compared to 18.4x for the peer median. Over the past year, PepsiCo stock fell 10.4%, while the S&P 500 (SPY) gained 16.8%. Over a 5-year period, the stock declined 2.6% against an 83.0% gain for the index.

PepsiCo pays a quarterly dividend with a forward annual payout of $5.92, representing a dividend yield of 4.50%. The company has paid dividends for 55 consecutive years, with an annualized 5-year dividend growth rate of 6.9%. In FY2025, dividends paid totaled $7.64B, and its trailing payout ratio stands at 54.3%. The most recent ex-dividend date was September 4, 2026.

Wall Street coverage consists of 4 Strong Buy, 2 Buy, 17 Hold, and 1 Strong Sell ratings. The mean price target of $141.59 implies 7.7% upside relative to the last close of $131.49. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $99.30B and EPS of $8.39, representing 3.1% EPS growth. PepsiCo has beaten EPS expectations in all 4 of its last 4 quarters.

This page is an AI-written research summary of PepsiCo, Inc. (PEP). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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