Reading the tape
NASDAQ: PEP
PepsiCo, Inc.
Consumer Defensive · Beverages - Non-Alcoholic
Market Cap
$211.36B
52w High
$171.48
52w Low
$127.60
P/E
24.17
Volume
4.50M
Outstanding Shares
1.37B
Price vs Fundamentals
Why The Stock Is Moving
Fundamentals are supporting the moveHigh confidence
1Y Price: 17.64%Revenue (TTM): 4.29%FCF (TTM): 21.66%P/FCF: 15th pct
What changed
The stock rose 17.64% over the last year. Revenue grew 4.29% over the trailing twelve months. Operating margin moved from 13.93% to 14.79%. Free cash flow grew 21.66% over the trailing twelve months.
What the market seems to be pricing
The stock move broadly lines up with stronger business momentum, and the shares are still only around the 15th percentile of their historical P/FCF range.
What would invalidate this read
Operating margin is at 14.79%. Revenue grew 4.29% — this thesis depends on that trajectory holding. If revenue growth, margins, or free cash flow roll over while the stock keeps climbing, more of the move would be coming from multiple expansion than business progress.
Company profile
PepsiCo, Inc. manufactures, markets, distributes, and sells various beverages and convenient foods worldwide.
CEORamon Luis Laguarta
SectorConsumer Defensive
IndustryBeverages - Non-Alcoholic
Employees319,000
IPO dateJun 1, 1972
Valuation
Forward P/E—
EV/EBITDA15.27
Enterprise value$237.34B
Stock splits
May 29, 1996↑ Forward
Every 1 shares became 2
Sep 5, 1990↑ Forward
Every 1 shares became 3
May 29, 1986↑ Forward
Every 1 shares became 3
May 31, 1977↑ Forward
Every 1 shares became 3
Profitability & growth
Revenue growth8.5%
Gross margin54.06%▼0.74%vs FY2024
Operating margin14.79%▲2.38%vs FY2024
ROE40.38%▼23.94%vs FY2024
Analyst consensus
RatingHold
Target price$174.00▲12.53%
16
Buy
28
Hold
1
Sell
Analyst ratings tend to be lagging indicators. Use as one signal among many.
Earnings
Full quarter-by-quarter history of actuals vs estimates. Switch into compare mode to inspect one metric year-over-year.
Next report
Jul 16, 2026
Q3 FY26 · EPS est $2.20 · Revenue est $24.01B
View
Dividends
$5.69/shareQuarterlyDividend Aristocrat · 42yrAdequatePEP pays a dividend with a 3.68% dividend yield, 42 consecutive years of growth, growing at 6.83% annually, covered 1.0× by free cash flow.
Dividend Yield
3.68%
Annual Div / Share
$5.69
5yr CAGR
+6.83%
Doubles every ~10.5yr
Payout Ratio
88.31%
Adequate
Dividend Growth Rate
3yr CAGR
+7.35%
5yr CAGR
+6.83%
10yr CAGR
+7.31%
Dividend Safety
3/10Adequate
Dividend History
Annualized dividend cycles per share
YearAnnual DivYoY
2025$5.69+5.0%
2024$5.42+7.1%
2023$5.06+10.0%
2022$4.60+7.0%
2021$4.30+5.1%
2020$4.09+7.1%
2019$3.82+3.0%
Income Projection
Invest
$
Growth rate:
Reinvest dividends
Today
$37/yr
$3/mo
In 5 yrs
$51/yr+39%
$4/mo
In 10 yrs
$71/yr+94%
$6/mo
| Today | In 5 yrs | In 10 yrs |
|---|---|---|
$37/yr $3/mo | $51/yr+39% $4/mo | $71/yr+94% $6/mo |
Yield-on-cost grows from 3.68% → 7.12% over 10yr
Analysis
Dividend Strengths
Dividend Aristocrat
PEP has raised its dividend for 42 consecutive years — qualifying as a Dividend Aristocrat, demonstrating long-term commitment to shareholder income.
Strong dividend growth rate
The 5-year CAGR of 6.83% meaningfully outpaces inflation, compounding real income growth for long-term holders.
Risks to Watch
High payout ratio
With 88.31% of earnings paid as dividends, there is limited retained earnings for reinvestment — and a dividend cut becomes more likely if earnings decline.
Congressional Activity
Congress Trades in PEP
STOCK Act disclosures from senators and representatives.
Sheldon Whitehouse
RIsenateDemocratSaleSpouse2026-03-30$1,001 - $15,000+9d to disclose
Thomas H. Kean
NJhouseRepublicanSale2026-03-26$15,001 - $50,000+19d to discloseSheldon Whitehouse
RIsenateDemocratSaleSpouse2026-02-23$1,001 - $15,000+11d to discloseSheldon Whitehouse
RIsenateDemocratSaleSelf2026-02-23$1,001 - $15,000+11d to disclose