PepsiCo (PEP) reports its Q2 2026 earnings on July 9. The stock is up just 2.45% year-to-date, lagging the broader market.
PEP currently trades at $141.16, sitting just 6% above its 52-week low of $132.96. That context makes next week’s report one to watch.
Wall Street is looking for earnings per share of $2.21, compared to $2.12 in Q2 2025. Revenue estimates sit at $23.96 billion, up from $22.7 billion the same period last year.
Options traders are pricing in a move of 4.46% in either direction following the report. That’s not a huge swing, but it reflects real uncertainty heading into the print.
UBS is the latest firm to trim its price target, cutting from $186 to $172 while keeping a Buy rating. The bank flagged that PEP is the third-worst performing stock across its entire coverage universe on both an absolute and relative basis since April 16 — down 13.9% over that stretch.
UBS acknowledged sentiment has turned more negative and said a return to historical growth rates for the Frito-Lay North America division could prove unlikely. That’s a tough pill for a division that was long seen as one of PepsiCo’s most reliable engines.
Barclays analyst Lauren Lieberman cut her price target to $144 from $158, keeping an Equal Weight rating. She cited investor skepticism around the durability of the PepsiCo Foods North America turnaround, saying the pace of improvement from earlier this year looks hard to sustain.
JPMorgan’s Andrea Faria Teixeira lowered her target to $170 from $178 but held her Overweight rating. She trimmed Q2 estimates to reflect lower price and mix assumptions, noting PepsiCo rarely misses expectations and that the bar coming in looks low given weak tracked channel data.
Bernstein SocGen cut its target to $142 and pointed to market share losses in both snacks and beverages. TD Cowen moved to $150, citing weak U.S. retail trends. Piper Sandler is at $178, flagging input cost pressure and slower distribution in salty snacks.
Dan Coatsworth of AJ Bell put the core issue plainly. The Middle East conflict has pushed up costs, which means PepsiCo faces a familiar dilemma — absorb lower margins or raise prices again and risk pushing consumers away.
That’s not a new problem for PEP. Last year, the company saw weaker sales volumes after consumers pushed back on price hikes. Q1 2026 showed some progress, but the question is whether that momentum can hold.
PepsiCo’s products are consumed more than one billion times a day across 200 countries. But at the shelf level, a consumer choosing between PEP and a store-brand alternative changes the math quickly.
On TipRanks, PEP holds a Moderate Buy consensus based on 6 Buy and 11 Hold ratings. The consensus price target is $163.77, implying roughly 13.56% upside from current levels. The highest target on the Street sits at $183.
The stock’s P/E ratio currently stands at 22.07, and UBS notes it trades at approximately 15 times revised fiscal 2027 EPS estimates. PepsiCo reports on July 9.
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