TLDR
- PepsiCo reports Q1 2026 earnings on April 16, before the opening bell.
- Options traders expect a 4.3% move in either direction following results.
- Wall Street consensus EPS estimate is $1.55, up ~5% year-over-year; revenue expected at $18.95 billion.
- UBS rates PEP a Buy ($186 target); Bank of America holds at $173.
- PEP stock is up ~9% year-to-date, trading at a forward P/E of 17.93x.
PepsiCo reports Q1 2026 results on April 16, before the market opens. Options traders are pricing in a 4.3% swing in either direction following the print.
That implied move is below PEP’s average post-earnings move of 5.4% over the past four quarters, suggesting the market is relatively calm heading into the report.
The stock has gained about 9% year-to-date, outperforming the S&P 500, which is down 2.2% over the same three-month window. At $157.06, PEP sits 23% above its 52-week low of $127.60.
Wall Street expects EPS of $1.55 for the quarter, a roughly 5% rise from the $1.48 reported a year ago. Revenue is forecast at $18.95 billion, implying around 6% growth year-over-year.
PepsiCo has beaten earnings estimates in each of the past four quarters, with an average surprise of 1.2%. Zacks flags a positive Earnings ESP of +0.03% alongside a Hold ranking, giving the model enough to call a likely beat.
North America in Focus
The PepsiCo Foods North America (PFNA) segment remains the key watchpoint. The business has been under pressure from softer volumes and competition, and management has responded with price cuts on core brands and a push to improve affordability.
Investors will be watching for early signs that those initiatives are gaining traction. Analysts also want updates on Beverages North America, which is targeting a sixth straight year of core operating margin expansion.
Tariffs and input costs are real headwinds. UBS analyst Peter Grom, who rates PEP a Buy with a $186 price target, said he “would not be surprised” to see full-year guidance move toward the lower end of the range due to forex and cost pressures.
Grom noted that some investors remain doubtful about whether PEP’s pricing and innovation push will produce lasting improvement in North America. He still sees the risk/reward as favorable from current levels.
Analyst Ratings Split
Bank of America’s Peter Galbo kept a Hold rating with a $173 price target. He maintained his Q1 EPS estimate at $1.53 and full-year at $8.60. Galbo now expects a lower effective tax rate and heavier SG&A spending in the first half of the year.
His three focal points for the print: the operational impact of Middle East tensions, execution on PFNA turnaround initiatives, and updates on Beverages North America growth plans.
Overall, Wall Street has a Moderate Buy consensus on PEP, based on seven Buy ratings and eight Holds. The average price target of $173.36 implies about 11% upside from current levels.
PEP trades at a forward P/E of 17.93x, below the S&P 500’s 21.33x and the broader industry’s 18.88x. The stock also carries a dividend yield of 3.65%.
PepsiCo has restaged four global brands — Lay’s, Tostitos, Gatorade and Quaker — with updated marketing and simpler ingredient lists as part of a broader portfolio refresh heading into 2026.
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