Time for Substantiation... What we‘re watching for in FY2Q26 results

Research evidence excerpt

Time for Substantiation... What we‘re watching for in FY2Q26 results

Deutsche Bank

Research

Rating Company Date

Buy PepsiCo 17 June 2026

North America Reuters Bloomberg Rating Buy

United States PEP.OQ PEP US Price target (USD) 168.00 Price at 16 Jun 26 146.12

52-week range 170.49 – 128.02

Consumer

Consumer Staples Valuation & Risks

Time for Substantiation... What we're

watching for in FY2Q26 results SteveResearchPowersAnalyst

+1-212-250-5480

PEP reports FY2Q26 earnings results on Thursday, July 9th pre-market

Christopher Barnes, CFA We preview PEP’s 2Q26 results with a more cautious stance, as the PFNA Research Analyst

recovery thesis exiting FY1Q appears to be stagnating/more protracted than we +1-212-454-0778

had hoped to see: early-quarter trends (late March/early April) suggested

encouraging momentum following 1Q’s return to positive volume growth, but Angeline Goh

Research Associate consumption trends have decelerated through late April/May.

+1-212-250-4515

Given our prior framing of April-June as a key validation window (with innovation

Nikhil Jain, CFA

launches, shelf resets, distribution gains, and pricing actions largely in place), the Research Associate

observed slowdown raises incremental questions around the effectiveness of +1-212-250-3253

PEP’s interventions and the durability/strength of underlying demand,

particularly as the business approaches the critical summer selling season.

Moreover, foodservice/AFH channels (a recent source of strength) have also likely

Key changes come under greater pressure amid higher gas prices and deteriorating consumer

sentiment. As a result, the quarter is unlikely in our view to show a material step- Price target (USD) 173 168 -3%