PepsiCo: Chairman & CEO/CFO Fireside Chat Takeaways & Model Update Post 2Q26

Research evidence excerpt

PepsiCo: Chairman & CEO/CFO Fireside Chat Takeaways & Model Update Post 2Q26

J P M O R G A N North America Equity Research

09 July 2026

PepsiCo Overweight

PEP, PEP US

Chairman & CEO/CFO Fireside Chat Takeaways & Price (09 Jul 26):$137.86

Model Update Post 2Q26 Price Target (Dec-27):$170.00

We are updating our model following 2Q26 earnings results, Q&A conference call, Beverage, Household & Personal

and our fireside chat with Chairman & CEO Ramon Laguarta, EVP & CFO Steve Care Products

Schmitt, and SVP IR Ravi Pamnani. PEP results and management commentary Andrea Teixeira, CFA AC

reinforced the narrative that the turnaround in PFNA will take time (longer than (1-212) 622-6735

expected given incremental consumer pressures) and not be a straight line (requires andrea.f.teixeira@jpmorgan.com

optimization at certain retailers). While the macro situation may remain volatile, Drew Levine, CFA

we believe the company’s U.S. performance should improve in 2H (as we describe (1-212) 622-0374

within). Moreover, the International business remains a strong growth driver and drew.levine@jpmorgan.com

better-than-expected performance should largely offset the softer North America. Shovana Chowdhury

(1-212) 270-2184

shovana.chowdhury@jpmorgan.com

Given the complexion of the 2Q26 results (i.e., PFNA volume missed by ~2 points, J.P. Morgan Securities LLC

low-quality EPS beat) and management outlook/commentary (i.e., reiterated EPS

guide now embeds 1 point non-recurring tariff relief benefit, signaled more gradual

North America recovery and EPS toward lower end of range), we understand the Quarterly Forecasts (FYE Dec)

weakness in shares post-print (PEP -3.3% vs. S5CONS -1.8%). While Adj. EPS ($)

performance in the U.S. (biggest lever to multiple re-rating) has been 2025A 2026E 2027E