Overview

• U.S. beverage and snacks maker's Q1 net revenue grew 8.5% yr/yr, driven by FX and acquisitions

• Core EPS for Q1 beat analyst expectations, rising 9% yr/yr

• Company affirmed fiscal 2026 guidance for organic revenue and core EPS growth

Outlook

• PepsiCo affirms fiscal 2026 guidance, expecting organic revenue growth of 2-4%

• Company expects core constant currency EPS to rise 4-6% in fiscal 2026

• PepsiCo anticipates total cash returns to shareholders of about $8.9 bln in 2026

Result Drivers

• FX AND ACQUISITIONS - Net revenue growth was driven by a 3.4 percentage point benefit from foreign exchange and a 2.5 percentage point net benefit from acquisitions and divestitures

• ORGANIC REVENUE - Organic revenue growth of 2.6% reflected effective net pricing and a slight contribution from organic volume growth

• PRODUCTIVITY SAVINGS - Core operating profit performance was primarily driven by productivity savings, net revenue growth and a 4-percentage-point benefit from foreign exchange translation, partially offset by certain operating cost increases

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 10 "strong buy" or "buy", 14 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the non-alcoholic beverages peer group is "buy."

• Wall Street's median 12-month price target for PepsiCo Inc is $169.50, about 9.5% above its April 15 closing price of $154.85

• The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 17 three months ago

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