PepsiCo, Inc. engages in the manufacture, marketing, distribution, and sale of various beverages and convenient foods worldwide. The company operates through seven segments: Frito-Lay North America; Quaker Foods North America; PepsiCo Beverages North America; Latin America; Europe; Africa, Middle East and South Asia; and Asia Pacific, Australia and New Zealand and China Region. It provides dips, cheese-flavored snacks, and spreads, as well as corn, potato, and tortilla chips; cereals, rice, pasta, mixes and syrups, granola bars, grits, oatmeal, rice cakes, and side dishes; beverage concentrates, fountain syrups, and finished goods; ready-to-drink tea, coffee, and juices; dairy products; and sparkling water makers and related products, as well as distributes alcoholic beverages under Hard MTN Dew brand. The company offers its products primarily under the Lay's, Doritos, Fritos, Tostitos, BaiCaoWei, Cheetos, Cap'n Crunch, Life, Pearl Milling Company, Gatorade, Pepsi-Cola, Mountain Dew, Quaker, Rice-A-Roni, Aquafina, Bubly, Emperador, Diet Mountain Dew, Diet Pepsi, Gatorade Zero, Crush, Propel, Dr Pepper, Schweppes, Marias Gamesa, Ruffles, Sabritas, Saladitas, Tostitos, 7UP, Diet 7UP, H2oh!, Manzanita Sol, Mirinda, Pepsi Black, Pepsi Max, San Carlos, Toddy, Walkers, Chipsy, Kurkure, Sasko, Spekko, White Star, Smith's, Sting, SodaStream, Lubimyj Sad, Agusha, Chudo, Domik v Derevne, Lipton, and other 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. The company was founded in 1898 and is based in Purchase, New York.

PepsiCo looks like a high-quality but not cheap defensive asset: the business consistently generates profit and maintains high margins, yet its valuation is already noticeably above the industry average. A P/E ratio of 22.37 is only moderately above the median, but P/S at 2.05, P/B at 9.05, and P/FCF at 21.16 remain expensive relative to the sector, limiting the potential for re-rating. At the same time, the overall trend in multiples does not provide a strong signal for valuation expansion: P/E and P/FCF have declined from local peaks, but still remain at elevated levels. The company’s profitability is strong: ROE of 43.56%, ROA of 8.12%, and ROI of 14.06% are significantly above the industry, while gross, operating, and net profit margins also exceed the median. This confirms PepsiCo’s ability to maintain pricing power and efficiently monetize the scale of its brands. On the other hand, liquidity is weak: a current ratio of 0.90 and a quick ratio of 0.72 are below comfortable levels, which looks less than ideal for the consumer sector. Debt burden is also elevated: a debt/equity ratio of 1.98 and a substantial amount of long-term debt create pressure on valuation, especially in the context of high interest rates. Revenue, EBITDA, and earnings remain large and generally stable, while equity and assets are growing, which supports underlying financial resilience. However, growth rates do not look strong enough to justify a premium to the market without a risk discount. The dividend yield in the latest data does not appear sustainably high, so the dividend factor does not offset the expensive valuation multiples. Overall, the fundamentals point more toward maintaining quality than accelerating growth, so a moderate conservative downward adjustment is appropriate. For an investor, this means PepsiCo remains a reliable defensive story, but the current price already reflects much of its strong operating performance.

PepsiCo, Inc.

Сильный индекс, без изменений. Быки в растерянности.

Strong index, flat. The bulls are confused.

Сильный индекс, незначительно вырос. Рынок на стороне быков.

Strong index, slightly up. The market is on the bulls' side.

Сильный индекс, значительно вырос. Приток средств в лонги на высоком уровне.

Strong index, significantly up. Inflow of funds into longs at a high level.

PepsiCo remains a high-quality defensive business with strong profitability, but its high valuation and significant debt limit the potential for further upside.

Note: The following is an excerpt from this week’s Earnings Trends report. You can access the full report that contains detailed historical actual and estimates for the current and following periods, please click here>>>
Here are the key points:
For the 216 S&P 500 companies that have reported Q2 results, or 43.2% of the index’s total membership, total earnings are up +58.1% from the same period last year on +12.2% higher revenues, with 86.6% beating EPS estimates and 77.3% beating revenue estimates.
This is a notably better showing from these 216 index members relative to other recent periods, both in terms of the earnings and revenue growth rates as well in terms of the beats percentages. The EPS and revenue beats percentages for these 216 index members are notably tracking above the averages for this group of companies over the preceding 20 quarters.
The Q2 earnings and revenue growth rates have been boosted by Micron’s (MU) blockbuster quarterly results and Alphabet’s (GOOGL) unrealized gain on its SpaceX stake. However, the earnings and revenue growth rates would still compare favorably with other recent periods when we exclude Micron and Alphabet from these results. Excluding Micron and Alphabet, Q2 earnings for the remaining 214 index members that have reported Q2 results would be up +17.8% (vs. +58.1% otherwise) on +9.8% higher revenues (vs. +12.2% otherwise).
For the Finance sector, we now have Q2 results from 69.7% of the sector’s market capitalization in the S&P 500 index. Total earnings for these Finance companies are up +25.1% from the same period last year on +16.2% higher revenues, with 87.3% of companies beating EPS estimates and 78.2% beating revenue estimates. This is a notably better performance from these Finance companies relative to what we have seen from the group in other recent periods.
Broad Q2 Outperformance Sustains Positive Revisions Trend Despite Consumer Discretionary & Staples Drag
The Q2 earnings season continues to validate our bullish outlook on corporate earnings. An above-average percentage of companies are topping consensus top- and bottom-line estimates while offering constructive commentary for upcoming quarters.
This solid execution is sustaining a positive revisions trend, with Q3 earnings estimates rising across 8 of the 16 Zacks sectors since early July—extending the favorable momentum observed in recent quarters. Positive revisions have been particularly notable in Energy, Basic Materials, Tech, and Finance.
Conversely, 7 of the 16 Zacks sectors have seen their Q3 estimates revised lower this month, led by cuts in Consumer Staples, Consumer Discretionary, and Autos.
The pressure on Consumer Staples directly reflects the exhaustion of sector pricing power. Procter & Gamble’s PG recent earnings miss and conservative outlook underscore escalating consumer pushback against price hikes, which had previously driven sales growth and margin expansion.
While everyday essentials typically provide steady defensive cash flows, budget-strained shoppers are increasingly migrating to private-label store brands or paring back unit purchases. P&G is hardly an isolated case—recent updates from Conagra Brands CAG and PepsiCo PEP confirm a broader industry pattern of weakened pricing power and stagnant volume growth.
The Earnings Big Picture
The chart below shows S&P 500 expectations for 2026 Q2 in terms of what was achieved in the preceding four periods and what is currently expected for the following three quarters.
Image Source: Zacks Investment Research
The chart below shows the overall earnings picture for the S&P 500 index on an annual basis.
Image Source: Zacks Investment Research
The chart below shows the significant contribution of the Tech sector to the aggregate growth picture. The chart also shows how critical Nvidia, Micron, and Alphabet are to the 2026 aggregate growth tally.
Image Source: Zacks Investment Research
Estimates for full-year 2026 have also been steadily going up, particularly since the start of March. The chart below shows the evolution of aggregate S&P 500 earnings estimates since last July.
Image Source: Zacks Investment Research
Full-year 2026 earnings estimates have increased for 11 of the 16 Zacks sectors since the start of March, with the most pronounced gains at the Energy, Basic Materials, Tech, Industrials, Utilities, and Business Services sectors. On the negative side, estimates have been under pressure for the Transportation, Autos, Medical, and Consumer Discretionary sectors since the start of March. History suggests that these favorable revisions will get a boost from the Q2 earnings season and updated management guidance.
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PepsiCo, Inc. (PEP) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Q3 Estimates Increase for Tech and Finance, Fall for Consumer Staples

Key Points
Coca-Cola dominated digital and social media channels during the FIFA World Cup.
Its wide moat, steady growth, and reliable dividend all make it a great long-term buy.
Coca-Cola (NYSE: KO) recently revealed impressive numbers for its FIFA World Cup campaign. The beverage giant activated its marketing campaign across 180+ markets, with its digital and social activations generating 60 billion digital impressions and over 9 billion social media views.
That push, which was supported by over 2,500 content creators, made Coca-Cola the number one brand by "share of voice" -- meaning it generated the most online chatter, social media engagement, and ad visibility of all the brands that participated in the FIFA World Cup. It also generated "record-setting" engagement with its Powerade brand. Over 80 million consumers engaged with its connected packaging (via QR codes or smart tags), enabling it to collect over 25 million first-party data records for future ad campaigns.
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Coca-Cola is one of the only companies that can pull off a marketing campaign of this scale. Let's see why that wide moat makes it a great dividend stock to buy in August.
Why is Coca-Cola such a resilient investment?
Coca-Cola has raised its dividend annually for 64 consecutive years, putting it in the elite club of Dividend Kings that have maintained that streak for at least 50 years. It maintained that streak through five global recessions and dozens of regional military conflicts. It pays a forward dividend yield of 2.4%, and its low payout ratio of 65% leaves it plenty of room for future hikes.
Coca-Cola might seem like a wobbly investment amid declining soda consumption rates. But over the past few decades, it has expanded its portfolio to include more brands of bottled water, fruit juices, teas, sports drinks, energy drinks, coffee, and alcoholic beverages. It also updated its sodas with smaller serving sizes, healthier versions, and new flavors. That expansion and evolution -- which it's supporting with new marketing and engagement campaigns -- allows it to steadily grow its revenues and profits.
Coca-Cola only produces the concentrates and syrups for its drinks, while its independent bottling partners manufacture and distribute the finished beverages. That asset-light model enables it to generate ample cash for dividends, buybacks, and big marketing campaigns.
Unlike PepsiCo (NASDAQ: PEP), Coca-Cola doesn't dabble in packaged foods -- which are exposed to a broader range of inflationary and competitive headwinds than its core beverages. That's why Coca-Cola's stock easily outperformed PepsiCo's over the past ten years.
Why is Coca-Cola's stock still worth buying?
From 2025 to 2028, analysts expect Coca-Cola's revenue and EPS to grow at CAGRs of 3% and 7%, respectively. That growth should be driven by AI-driven improvements to its restocking system, stronger sales of its health-oriented and wellness drinks (Fairlife dairy products, BODYARMOR functional sports drinks, and Coca-Cola Zero), and its ongoing transition from traditional mass advertising to data-driven consumer engagement.
Coca-Cola already showcased those forward-thinking marketing strategies at the FIFA World Cup this year, and it plans to do it again during the 2028 Summer Olympics in Los Angeles. By collecting more data on its customers, it can deploy more personalized marketing campaigns, AI-driven promotions, and automated loyalty rewards through social and digital channels. That strategy should reinforce its brand loyalty while reducing customer acquisition costs.
Coca-Cola isn't an exciting investment, and it might not seem like a bargain at 25 times next year's earnings. But it's still a rock-solid long-term investment because it has a wide moat, plenty of irons in the fire, and enough cash to support its annual dividend hikes.
That's why Coca-Cola remains one of my top holdings (4.6% of my portfolio), and why I'd be comfortable buying more shares even as it hovers near its all-time high. So if you're looking for a solid blue chip dividend stock to buy and forget, Coca-Cola checks all the right boxes.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Coca-Cola Dominated the Summer's Biggest Sporting Event. Here's Why the Dividend Stock Is a Buy in August.

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the JPMorgan Hedged Equity Laddered Overlay ETF (Symbol: HELO) where we have detected an approximate $382.7 million dollar inflow -- that's a 9.2% increase week over week in outstanding units (from 61,575,000 to 67,225,000). Among the largest underlying components of HELO, in trading today Howmet Aerospace Inc (Symbol: HWM) is down about 2.1%, PepsiCo Inc (Symbol: PEP) is up about 1.4%, and 3M Co (Symbol: MMM) is lower by about 0.6%. For a complete list of holdings, visit the HELO Holdings page » The chart below shows the one year price performance of HELO, versus its 200 day moving average:
Looking at the chart above, HELO's low point in its 52 week range is $62.64 per share, with $68.40 as the 52 week high point — that compares with a last trade of $67.41. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Further HELO Research:
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

JPMorgan Hedged Equity Laddered Overlay ETF Experiences Big Inflow

PepsiCo Inc. PEP enters the second half of 2026 with durable global brands, better international volumes and reaffirmed financial guidance.
The investment debate is more balanced in North America, where soft demand, affordability spending and input-cost pressure continue to test near-term execution.
PepsiCo Builds on a Diversified Global Portfolio
PepsiCo operates in more than 200 countries and territories with a portfolio that spans beverages and convenient foods. Its brands include Pepsi, Gatorade, Lay’s, Doritos, Cheetos, Quaker and Mountain Dew, giving the company multiple demand channels across daily consumption occasions.
PepsiCo, Inc. Price, Consensus and EPS Surprise
Its six reporting segments further reduce reliance on one geography or category. PepsiCo Foods North America and PepsiCo Beverages North America cover the United States and Canada, while International Beverages Franchise, Europe, the Middle East and Africa, Latin America Foods and Asia Pacific Foods broaden the growth base.
The Coca-Cola Company KO remains a relevant benchmark because it also sells beverages in more than 200 countries and territories. Keurig Dr Pepper Inc. KDP, with its North American beverage portfolio and distribution network, offers another comparison point for investors tracking category demand and flavor innovation.
PEP Leans on International Markets for Growth
International markets were PepsiCo’s clearest growth engine in the second quarter of 2026. International organic revenue increased 7%, marking the 21st consecutive quarter of at least mid-single-digit organic revenue growth.
The strength was broad based. International Beverages Franchise organic revenues rose 9%, Europe, the Middle East and Africa grew 6%, Latin America Foods increased 4% and Asia Pacific Foods advanced 9%. Asia Pacific Foods also delivered 10% organic volume growth, the strongest volume performance among the reported segments.
PepsiCo Uses Productivity to Support Earnings
PepsiCo’s second-quarter net revenues rose 6.4% to $24.18 billion, while organic revenues increased 2.4%. Core operating profit increased 4% and core earnings per share grew 4%, showing that productivity and pricing helped support earnings despite a tougher cost environment.
PepsiCo, Inc. Revenue (Quarterly YoY Growth)
Automation, digitalization and supply-chain simplification remain central to that support. These initiatives are intended to offset inflation, help fund brand investment and preserve flexibility as management expects higher input-cost inflation in the second half of 2026.
PEP Balances Innovation With Affordability
PepsiCo is expanding in functional hydration, protein offerings, zero-sugar beverages, permissible snacks and portion-control formats. These categories align with consumer demand for better-for-you choices while allowing the company to refresh established brands.
Affordability is the other side of the strategy. PepsiCo is using price-pack adjustments and spending behind value-oriented offerings to reach budget-conscious consumers, especially in North America. That focus helped convenient foods gain volume share, but the region still showed softer financial trends.
PepsiCo’s Signals Point to Near-Term Caution
PepsiCo’s long-term global strengths remain visible, but the stock’s near-term setup is cautious. North America organic revenue declined 0.5% in the second quarter, PepsiCo Foods North America revenues fell 2%, and PepsiCo Beverages North America organic growth was only 1% despite reported revenue growth of 7%.
The company reaffirmed its 2026 outlook for organic revenue growth of 2-4% and reported net revenue growth of 4-6%. Core constant-currency earnings per share are expected to increase 4-6%, while core earnings per share are expected to rise 5-7%. Still, earnings growth is expected to be weighted toward the fourth quarter, which raises execution risk.
The stock currently carries a Zacks Rank #4 (Sell). That rank points to unfavorable earnings estimate revision trends over the next one to three months and supports caution for investors focused on near-term stock selection.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
PepsiCo also has a Value Score of C, Growth Score of C, Momentum Score of F and VGM Score of C. These scores suggest a middle-ground valuation and growth profile, while the weak momentum reading reinforces the more cautious near-term signal despite PepsiCo’s durable global brand base.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
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PepsiCo, Inc. (PEP) : Free Stock Analysis Report
CocaCola Company (The) (KO) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

PepsiCo's Global Growth and Brand Strategy Shape Its 2026 Outlook

PepsiCo Inc. PEP offers investors a familiar but mixed setup after its second-quarter 2026 results. The stock trades below several valuation benchmarks and carries a dividend yield above 4%, while international demand remains a stabilizing force.
The debate is whether that support is enough. Softer North American trends, margin pressure, high debt and negative estimate revisions keep the investment case from looking broadly favorable.
PEP Trades Below Key Historical Valuation Levels
PepsiCo is trading at 16.2X forward 12-month earnings, below the soft-drink sub-industry multiple of 19.98X and the S&P 500 multiple of 20.11X. It also sits below its five-year median of 20.75X, suggesting the market is already discounting slower near-term momentum.
The $151 price target compares with the recent stock price of $142.86. That spread points to measured upside rather than a deep-value setup. The Coca-Cola Company KO remains a relevant beverage benchmark, while Keurig Dr Pepper Inc. KDP gives investors another North American beverage comparison when assessing category demand and valuation.
Image Source: Zacks Investment Research
PepsiCo Sustains Cash Returns to Shareholders
PepsiCo still offers a meaningful income component. The company expects to return $8.9 billion to shareholders in 2026, including $7.9 billion in dividends and $1 billion in share repurchases.
The annualized dividend rose to $5.92 per share from $5.69 per share, effective with the June 2026 payment. Management also continues to target free cash flow conversion of at least 80%, which supports the dividend program while leaving room for business reinvestment.
Image Source: Zacks Investment Research
PEP Faces Margin and Debt Pressures
Second-quarter profitability showed the pressure behind the headline earnings beat. Core gross margin declined to 54.3% from 55.1%, while core operating margin contracted 40 basis points to 16.8%.
Productivity savings and pricing helped, but affordability investments, higher operating costs and inflation limited margin leverage. Debt also remains a constraint, with short-term obligations of $10.6 billion and long-term debt of $42.6 billion at quarter-end, pushing combined debt above $53 billion.
PepsiCo’s Estimates Show Modest Growth
Current projections call for 2026 revenues of about $98.8 billion, up from $93.93 billion in 2025. Earnings are projected at $8.56 per share, compared with $8.14 in 2025.
Those forecasts still show growth, but estimate direction is less supportive. The current fiscal-year earnings estimate declined 0.5% over the past four weeks, indicating weaker near-term earnings conviction despite second-quarter revenue and earnings growth.
PEP’s Scores Temper the Value Case
The bottom line is balanced. PepsiCo’s lower earnings multiple, cash returns and international resilience give the stock some defensive appeal, but margin compression and North American softness reduce the case for aggressive buying.
The stock currently carries a Zacks Rank #4 (Sell), which reflects unfavorable earnings-estimate revision trends. That rank is especially important because the Zacks Rank is designed to capture near-term estimate momentum.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
PepsiCo’s Style Scores also argue for caution. Its Value Score of C, Growth Score of C and VGM Score of C do not signal a decisive bargain or broad-based strength, while its Momentum Score of F reflects weak recent stock action.
For investors focused on income and consumer-staples exposure, PEP remains a major global franchise. For those looking for improving near-term earnings momentum, the current ranking and Style Scores suggest patience.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
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PepsiCo, Inc. (PEP) : Free Stock Analysis Report
CocaCola Company (The) (KO) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Is PepsiCo Stock Attractive After Q2 Earnings and Margin Pressure

PepsiCo Inc. PEP is showing two different operating pictures in 2026. International markets are delivering stronger volume growth, while North America is dealing with tighter consumer budgets and softer demand.
The shift matters because PepsiCo’s portfolio now leans on emerging consumer needs as much as legacy scale. Functional beverages, zero-sugar drinks, permissible snacks and affordable formats are shaping where it invests next.
PepsiCo, Inc. Revenue (Quarterly YoY Growth)
PepsiCo Captures Global Volume Momentum
PepsiCo’s international business provided the clearest signal in the second quarter. International convenient-food organic volume increased 4%, while International Beverages Franchise organic volume rose 5%.
Asia Pacific Foods delivered the strongest reported segment volume performance, with organic volume up 10%. International organic revenue increased 7%, marking the 21st consecutive quarter of at least mid-single-digit growth.
That helps offset a more difficult U.S. backdrop. The Coca-Cola Company KO remains a relevant beverage peer as investors compare global brand reach and zero-sugar demand across the beverage group.
PepsiCo, Inc. Price, Consensus and EPS Surprise
PEP Expands in Functional and Zero-Sugar Products
PepsiCo’s beverage strategy is moving further into functional hydration and zero-sugar offerings. In North America, Gatorade delivered volume and net revenue growth, helped by Gatorade Lower Sugar and continued strength in Gatorlyte.
Propel also posted volume and net revenue growth, while Pepsi Zero Sugar, Pepsi Wild Cherry & Cream, Mountain Dew Zero Sugar and Mug Root Beer gained value and volume share. The company is broadening products tied to hydration, protein, fiber, energy and portion control.
PepsiCo’s convenient-food portfolio is making a similar shift. Permissible options such as Baked, Simply, SunChips, Siete and Quaker Rice Cake offerings delivered volume and net revenue growth in the quarter.
PepsiCo Adapts Pricing to Value-Conscious Consumers
North American demand remains the main pressure point. In the second quarter, North America organic revenue declined 0.5%, as U.S. food and beverage category growth moderated.
PepsiCo Foods North America revenues fell 2%, mainly because of lower effective net pricing. The company is using affordability investments and price-pack architecture to stay relevant to selective consumers.
That response has trade-offs. Greater affordability spending can protect household penetration, but lower effective pricing and reinvestment may weigh on margins. Keurig Dr Pepper Inc. KDP, with its North American beverage focus, gives investors another reference point for value, innovation and channel demand.
PEP Invests in Automation and Supply Chains
PepsiCo is using automation, digitalization and supply-chain simplification to respond to inflation and higher operating costs. These initiatives are part of its broader productivity program.
Productivity savings and effective net pricing helped core operating profit increase 4% in the second quarter. However, core operating margin contracted 40 basis points to 16.8%, showing that higher operating costs and reinvestment still constrained profitability.
Management expects productivity gains to help mitigate higher input costs in the second half of 2026. Advertising, marketing and portfolio investments may still limit near-term margin recovery.
PepsiCo’s Ratings Reflect Uneven Trend Strength
The bottom line is that PepsiCo has trend exposure, but the stock still reflects uneven near-term conditions. International volumes, functional beverages and healthier snack formats are moving in the right direction, while North American demand and margin pressure remain concerns.
The stock currently carries a Zacks Rank #4 (Sell). That ranking points to caution over the next one to three months, especially as near-term earnings-estimate trends remain unfavorable and execution is expected to be weighted toward the fourth quarter.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
PepsiCo’s Value Score of C, Growth Score of C and VGM Score of C do not indicate a broad-based style advantage. Its Momentum Score of F is weaker and signals that recent price action has not supported the global portfolio story.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
PepsiCo, Inc. (PEP) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

PepsiCo Rides Global Volume Growth as North American Demand Slows

Key Points
Enterprise Products Partners is one of the largest midstream businesses in North America and yields 5.6%.
PepsiCo is a Dividend King and a diversified food giant, offering a 4.3% yield.
Realty Income is an industry-leading net-lease REIT with a 5% yield.
It is hard to look at the miserly 1% yield on the S&P 500 index (SNPINDEX: ^GSPC) if you are a dividend investor. That yield is an indication of how low yields are throughout the market. But there are still attractive high-yield options, if you dig deep enough.
Three worth looking at right now are Enterprise Products Partners (NYSE: EPD), PepsiCo (NASDAQ: PEP), and Realty Income (NYSE: O). The lowest yield on this list is four times what you'd get from the S&P 500. The highest is 5.6%. Here's a look at each of these reliable dividend payers.
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Enterprise Products Partners and its 5.6% yield
Enterprise Products Partners is a midstream master limited partnership (MLP). It owns the energy infrastructure that helps to move oil and natural gas around the world. The company charges fees for the use of its assets, so volume is more important to its financial results than the prices of the commodities it is moving. Given that energy is vital to economic activity, demand tends to be strong most of the time, even during economic downturns.
Enterprise has increased its distribution for 27 consecutive years. Its distributable cash flow covers its distribution by a generous 1.7x. And it has $5.3 billion in capital spending plans to keep the distribution growing. To be fair, the MLP is a slow-growth business, so the lofty 5.6% yield will make up most of your return over time. But if you are looking to maximize the income your portfolio generates, it could be the perfect fit.
PepsiCo and its 4.3% yield
PepsiCo is the Dividend King on the list, with over five decades of annual dividend increases behind it. It is also one of the world's largest consumer staples companies. Notably, the stock's 4.3% yield is toward the high end of its historical range, suggesting PepsiCo isn't hitting on all cylinders right now. But the stock looks cheap.
Large companies that have been around for a long time (PepsiCo was founded in 1898) will eventually face hard times. The best companies manage through them, which this Dividend King has done many times in its past. Right now, consumer buying habits are changing, and price pressures are mounting. PepsiCo is changing with them, including by acquiring more relevant brands, creating innovative versions of existing brands, and adjusting pricing and packaging.
These are the exact steps PepsiCo should take right now to get back on track. If you think in decades and not days, this historically resilient business looks attractively priced.
Realty Income and its 5% yield
Realty Income is the largest net-lease real estate investment trust (REIT). That means its tenants pay most property-level costs, reducing Realty Income's operating expenses and risk. The REIT focuses on single-tenant retail properties but also has exposure to industrial assets and a collection of more unique properties, such as casinos, vineyards, and data centers. Geographically, its over 15,500 property portfolio is spread across North America and Europe. It is one of the most diversified REITs you can buy.
Realty Income, which has increased its dividend annually for 31 years, is built to be boring. In fact, the company tends to grow incrementally, expanding into adjacent business areas it already knows well. For example, it recently introduced a fee-based asset management business for institutional investors, which simply builds on what it is already doing elsewhere in its portfolio. The added diversification helps the REIT reliably pay the 5% dividend and slowly grow it over time. However, the big takeaway is that this industry-leading giant is still finding ways to grow.
Dig in and unearth some attractive yields
The "market" isn't one single entity; it is a composite of many smaller companies. While the S&P 500 has a miserly yield, you can still find great companies offering much higher yields. Enterprise, PepsiCo, and Realty Income are three leading examples that are worth a deep dive right now.
Should you buy stock in Enterprise Products Partners right now?
Before you buy stock in Enterprise Products Partners, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Enterprise Products Partners wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $377,990!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,269,518!*
Now, it’s worth noting Stock Advisor’s total average return is 896% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of July 26, 2026.
Reuben Gregg Brewer has positions in PepsiCo and Realty Income. The Motley Fool has positions in and recommends Realty Income. The Motley Fool recommends Enterprise Products Partners. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

3 High-Yielding Dividend Stocks Worth Loading Up On Now (1 Yields Over 5.5%)

Key Points
Verizon's 6.3% dividend yield comes backed by very healthy payout ratios.
Altria yields 5.9% and raises its dividend every year, going back decades.
PepsiCo's recession-proof snacks and beverage empire makes it a portfolio stalwart.
High dividend yields can cut both ways, especially if your investing goal is to generate as much income as possible. Monster yields can mean mountains of passive income, but they are also riskier, and you often wind up losing money if the company has to cut the dividend. But there are high-yield dividend stocks out there with strong financials, some with yields as high as 4%, 5%, even 6% or more.
Here are three dividend stocks, each yielding at least 4.3%. These dividends come backed by healthy fundamentals with years of proven performance. You can confidently buy these stocks right now and enjoy the passive income that comes with them.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
1. Verizon Communications
Cellphones and internet connectivity are staples in almost every household in America. People pay their phone bill like they pay their electric and gas utilities, which has made Verizon Communications (NYSE: VZ) a very dependable dividend stock. The leading U.S. wireless carrier has raised its dividend for 22 consecutive years, giving investors consistent growth alongside its juicy 6.4% yield.
The dividend is quite sustainable at only 57% of Verizon's 2026 earnings estimates and 58% of trailing-12-month cash flow. That means Verizon has plenty of financial breathing room to continue raising the dividend while still meeting the capital expenditure needs of its extensive infrastructure. The stock is hard to pass up when trading at less than 9 times its forward earnings, given that analysts expect high-single-digit earnings growth ahead.
2. Altria Group
Tobacco companies continue to stay relevant despite smoking rates peaking in the United States decades ago. Altria Group (NYSE: MO) dominates America's cigarette market with Marlboro, though it also sells various cigars, oral tobacco, and smoke-free products. Tobacco is notoriously addictive, making Altria an extremely resilient business over the years. It continues to squeeze out growth by raising its prices each year.
Altria is already a Dividend King, a company with over 50 consecutive annual dividend increases. The dividend payout ratio is manageable at 74% of 2026 earnings estimates and is backed by Altria's balance sheet and a multibillion-dollar stake in Anheuser-Busch InBev. Altria will probably continue growing earnings at a low-single-digit pace, but you don't need much when the stock trades at under 13 times forward earnings and yields 5.9%.
3. PepsiCo
It's hard to find much safer stocks than diversified food and beverage giant PepsiCo (NASDAQ: PEP). The company dominates your local grocery store with brands spanning soda and other beverages, chips, snacks, and breakfast foods. People always need to eat and drink, so PepsiCo continues to make money through recessions, pandemics, you name it. That's made the stock a Dividend King with over five decades of dividend growth.
PepsiCo currently spends most of its cash flow on dividends, which is admittedly not ideal. That said, PepsiCo has $10.7 billion in cash and an A+ rating on its balance sheet, so there's probably still minimal risk of a dividend cut. Analysts see PepsiCo growing earnings at a mid-single-digit rate moving forward, so the payout ratio can decline over time. Shares look like a bargain at under 16 times 2026 earnings estimates and offer a strong 4.3% starting yield.
Should you buy stock in Verizon Communications right now?
Before you buy stock in Verizon Communications, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Verizon Communications wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $377,990!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,269,518!*
Now, it’s worth noting Stock Advisor’s total average return is 896% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of July 26, 2026.
Justin Pope has positions in PepsiCo. The Motley Fool recommends Verizon Communications. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

3 Top Dividend Stocks Yielding 4.3% or More to Buy Right Now for Passive Income

These beverage giants are excellent companies, but only one can be the better investment in this comparison.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
*Stock prices used were the afternoon prices of July 21, 2026. The video was published on July 23, 2026.
Should you buy stock in Coca-Cola right now?
Before you buy stock in Coca-Cola, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Coca-Cola wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $369,577!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,301,557!*
Now, it’s worth noting Stock Advisor’s total average return is 908% — a market-crushing outperformance compared to 208% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of July 24, 2026.
Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

PepsiCo, Inc.

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