| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 63 | 17.8x | 17.8x | Around median | |
Growth | 55 | 5.6% | 7.1% | Around median | |
Quality | 86 | 16.3% | 4.5% | Top tier | |
Safety | 63 | 2.3x | 2.6x | Around median | |
Capital Return | 63 | 4.22% | 2.12% | Around median | |
Momentum | 28 | -6.9% | 2.9% | Bottom tier | |
Sentiment | 42 | 13 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
PepsiCo operates through a global portfolio spanning snacks and beverages, generating revenue from product sales in North America and international markets and through retail, away-from-home, and gas-and-convenience channels. Its cited portfolio drivers include Doritos protein, Naked, poppi, and Siete, alongside partnerships with Celsius and Alani Nu; it also focuses on zero-sugar beverages, functional hydration, energy, foods with positive nutritional attributes, and portion-controlled packaging. International markets account for more than half of food volumes and two-thirds of beverage volumes companywide, and management expects its international business to exceed $40 billion during fiscal 2026.
In fiscal 2026 quarter 2, revenue was $24.2 billion, gross profit was $13.1 billion, net income was $3.0 billion, and earnings per share were $2.18. This equates to a gross margin of approximately 54.1% and a net income margin of approximately 12.4%. Compared with fiscal 2026 quarter 1, revenue increased from $19.4 billion and net income from $2.3 billion, bearing in mind that the data do not provide a direct year-over-year comparison for these two items.
During the first half of fiscal 2026, management said reported revenue grew by approximately 7%, while global volumes increased 3% in foods and 2% in beverages, the fastest pace of volume growth since 2022. The international business delivered 7% growth in fiscal 2026 quarter 2, and its operating margin increased by a full percentage point, while North America performed below management's expectations; PFNA volume was flat and PBNA operating margin declined by approximately 90 basis points.
The average analyst price target for PEP is approximately $155.64, with a wide range of $134 to $183 and a neutral consensus, reflecting a balance between international growth and improving volumes versus North American weakness and margin pressure. The average target is approximately 9.2% below the 52-week range high of $171.48, while exceeding the range low of $133.73 by approximately 16.4%, and the data do not present a valid price-to-earnings ratio to provide an earnings-based valuation anchor.
Figures in the text are as of 2026-08-26; the live price is shown at the top of the page.
PepsiCo reported revenue of $24.2 billion and gross profit of $13.1 billion in fiscal 2026 quarter 2. Net income was $3.0 billion and earnings per share were $2.18, equating to a gross margin of approximately 54.1% and a net margin of approximately 12.4%. Management said revenue for the first half of fiscal 2026 grew by approximately 7%, with global food volumes growing 3% and beverage volumes growing 2%.
PFNA volume remained flat and fell short of management's expectations, while PBNA operating margin declined by approximately 90 basis points. On July 9, 2026, management cited pressure from higher fuel prices and inflation on consumer spending, particularly in gas-and-convenience stores and impulse-purchase channels. The implementation of some pricing investments and additional shelf space at certain customers was also delayed, despite the return of the savory snacks category to volume growth and PepsiCo's volume-share gains.
Management expects the international business to exceed $40 billion during fiscal 2026. This business accounts for two-thirds of the company's beverage volumes and more than half of its food volumes, and it recorded 7% growth in fiscal 2026 quarter 2. Its operating margin also increased by a full percentage point in that quarter, with strong performance in Europe, the Middle East, China, Vietnam, and Thailand.
Automated analysis for informational purposes only — not investment advice.
Management said on July 9, 2026, that poppi's transition from its previous distributor network to the PepsiCo network was nearly complete and that the brand had returned to a healthy growth rate with additional points of consumption and customers. Siete's ingredient issues that pressured performance in April and May 2026 were resolved, while the brand's integration had begun earlier. PepsiCo is also working to expand Doritos protein and Naked as part of a foods portfolio with positive nutritional attributes that reached $3 billion and is growing at approximately double digits.
On July 9, 2026, PepsiCo reaffirmed its fiscal 2026 guidance, while indicating that earnings per share could approach the low end of the announced range. Management sees a path toward the low end of the long-term revenue growth range of 4% to 6% in the second half of fiscal 2026, supported by continued strength in international markets and gradual improvement in North America. The company expects refund claims for tariffs paid in the prior year to add approximately one full percentage point to earnings-per-share growth, but it will use this benefit partly to offset commodity inflation and fund investment.
PepsiCo scheduled October 8, 2026, for the release of its fiscal 2026 quarter 3 results. Management indicated continued strength in the international business, with gradual improvement expected in North America during that quarter. Conversely, it expects a higher year-over-year tax rate and the timing of certain costs and investments to pressure fiscal 2026 quarter 3 more than quarter 4.
