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PepsiCo, Inc.
NASDAQ: PEP Consumer Staples FMCG 🔎 Screen
S&P 500 Nasdaq 100
$187.1B
Market Cap
24.0
P/E
4.00
PEG
20.1%
ROCE
42.8%
ROE
2.58
D/E
16.0%
OPM
-17.6%
% from 52W High
40
α RS
🔍 PEP is showing a high-conviction setup because it matches 7 of 39 tracked screener presets, an ECS of 67.5 last quarter, and it's within 17.6% of its 52-week high. Net: Broad signal stack, not a recommendation. ? Conviction ECS 52W High
Sources
Conviction 7/39 · ECS 67.5 · 17.6% from 52W high
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Currency-adjusted total returns for PEP including FX impact
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📈 Price History
Ratio Health
Excellent
Good
Average
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By Category
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About

PepsiCo, Inc. engages in the manufacture, marketing, distribution, and sale of various beverages and convenient foods worldwide. The company operates through six segments: PepsiCo Foods North America; PepsiCo Beverages North America; International Beverages Franchise; Europe, Middle East and Africa; Latin America Foods; and Asia Pacific Foods. It offers cereals, chips, dips, granola bars, oatmeal, pasta, rice, and syrups and mixes; refrigerated dips and spreads; beverage concentrates, fountain syrups, and finished goods; and ready-to-drink tea and coffee products. The company also provides SodaStream sparkling water makers and related products, as well as various dairy products under the Agusha, Chudo, and Domik v Derevne brands. It serves wholesale and other distributors, foodservice customers, grocery stores, drug stores, convenience stores, discount/dollar stores, mass merchandisers, membership stores, hard discounters, e-commerce retailers and authorized independent bottlers, and others through a network of direct-store-delivery, customer warehouse, and distributor networks, as well as directly to consumers through e-commerce platforms and retailers. PepsiCo, Inc. was founded in 1898 and is based in Purchase, New York.

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📈 Growth Pattern
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3-Statement Financial Model
Bear / Base / Bull projections · DCF fair value · Reverse-DCF
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🎙 Management Tone Mixed ↓ Deteriorating 5 quarters Full tone analysis in Intelligence →
Mixed quarter Investor Presentation One-Pager? Q2 2026
Net Revenue
$24.18B
+6.4% YoY
Operating Profit
$4.02B
+125% YoY
Operating Margin
16.6%
+875 bps YoY
EPS
$2.18
+137% YoY
Core EPS
$2.20
+4% YoY
What Went Right
  • Global volume grew 3% in foods and 2% in beverages in the first half, the fastest rate since 2022.
  • International net revenue grew 7% in Q2 with operating margin up a full point.
  • U.S. salty snacks returned to category volume growth and PepsiCo gained volume share, aided by affordability and permissible portfolio initiatives.
What to Watch
  • North America came in softer than expected as higher gas prices pressured convenience and gas channel purchase conversion.
  • PFNA volume was flat in Q2 despite stepped-up affordability efforts, forcing management to optimise ROI on pricing investments by channel.
  • PBNA operating margin fell 90 bps, about half driven by the Alani Nu commercial arrangement plus convenience/gas softness and mix.
  • Commodity inflation is expected in H2, especially in EMEA, and Q3 tax rate is expected higher year-on-year.
Management Guidance
  • Reaffirmed full-year FY2026 guidance; expects core EPS closer to the low end of the previously provided range.
  • Expects international to remain strong and North America to gradually improve in H2, with Q2 below plan.
  • Tariff refund claims for prior-year duties should contribute about 1 full point of EPS growth for FY2026.
Investor Lens
The thesis is modestly weaker after this call: North America is lagging expectations, with flat PFNA volumes and a 90 bps PBNA margin decline, while international outperformance provides a partial offset. Management's reaffirmation of full-year guidance, albeit at the low end, signals confidence but little upside. Global volume growth at the fastest level since 2022 and continued portfolio/affordability investments support the long-term story, but near-term U.S. consumer pressure remains key.
From investor presentation · AI-generated analysis · Not investment advice
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📊 MIXED Mixed Q2: strong global growth, but North America misses expectations.
Revenue
Q2 net revenue rose 6.4% to $24.18B, with organic revenue up 2.4%. International grew 7%, while North America convenient foods net revenue declined on lower effective net pricing; global volume grew 3% in foods and 2% in beverages.
Profitability
Reported EPS grew 137% to $2.18, helped by prior-year impairment charges, while core EPS grew 4% to $2.20. Core operating profit rose 4% to $4.07B. Reported operating profit increased 125% to $4.02B.
Margins
Core operating margin contracted 40 bps to 16.8%, while reported operating margin expanded 875 bps to 16.6%, partly reflecting prior-year charges. PBNA's operating margin fell 90 bps, but international operating margin increased one full point.
Balance Sheet
Not discussed.
Key Risks
Management flagged higher gas prices pressuring U.S. convenience/gas channel traffic conversion, a weaker North American consumer, and commodity inflation in H2, particularly EMEA. Q3 tax rate is expected to be higher year-on-year, and some retail price-investment execution was delayed.
Outlook
PepsiCo reaffirmed FY2026 guidance, expecting core EPS near the low end of the range. International should stay strong and North America improve gradually, with tariff refund claims adding roughly 1 point of EPS growth.
Generated by AI · Q2 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-07-09
Revenue grew 7% and EPS rose 6% in the first half of 2026, driven by strong international performance and a turnaround in U.S. foods volume. Guidance is reaffirmed, with tariff refunds offsetting commodity inflation and productivity initiatives funding growth.
Q1 2026 Q1 2026 2026-04-16
Sequential improvement in Q1 driven by strong North America Foods and international growth, with 2% PFNA volume growth and 9% PBNA growth. Guidance for 2%-4% organic revenue growth is maintained, with further acceleration expected into summer.
Q4 2025 Q4 2025 2026-02-03
Accelerated affordability and innovation initiatives are driving volume and shelf space gains, with strong brand restaging and productivity funding growth. International and North American segments are expected to accelerate, supported by acquisitions and targeted investments.
Q3 2025 Q3 2025 2025-10-09
Top-line growth is accelerating, driven by innovation, portfolio reshaping, and operational improvements, with margin expansion expected in Q4 and 2026. International and PBNA segments are key contributors, while cost optimization and technology investments support agility.
Q2 2025 Q2 2025 2025-07-17
Accelerated productivity and cost optimization are driving margin gains, with strong international growth and a focus on portfolio innovation and away-from-home channels. The outlook targets sequential top-line improvement and a return to long-term growth rates.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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