PepsiCo (PEP) Q2 2026 Earnings Review - Domestic pressure affecting Organic Growth and P/E Multiple

研报英文原文证据摘录

PepsiCo (PEP) Q2 2026 Earnings Review - Domestic pressure affecting Organic Growth and P/E Multiple

9 July 2026

Cristian Rios

+1 917 344 8615

U.S. Beverages, Household & Personal Care Products cristian.rios@bernsteinsg.com

PepsiCo Inc Yolanda Zhang

+1 917 344 8346

Rating yolanda.zhang@bernsteinsg.com

Market-Perform

Price Target

PEP 134.00 USD (142.00 OLD)

PepsiCo (PEP) Q2 2026 Earnings Review - Domestic pressure

affecting Organic Growth and P/E Multiple

We adjust our valuation model based on the latest reported results and discussions with

Close Date 9 Jul 2026

management.

PEP Close Price (USD) 137.86

On PFNA, we reduce our sales growth forecast for the remainder of 2026 to account for the Price Target (USD) 134.00

recent slowdown in consumer spending (especially in Q3), and lower margins to account for Upside/(Downside) (3)%

the impact of stagnant volumes with declining prices. 52-Week Range 171.48/132.96

SPX 7,482.71

Over the medium to long term, we remain unconvinced about the portfolio transformation FYE Dec

strategy and believe more effort should be put into developing meaningful businesses in Div Yield 4.3%

growing adjacent categories (meat sticks, rice cakes, pork rinds, pretzels, and pita chips). Market Cap (USD) (M) 188,164

Accordingly for 2027, we keep our negative volume forecast (as price decreases are lapped), EV (USD) (M) 230,834

but refine our Operating Margin forecast to reflect pressure on operating leverage from Performance YTD 1M 6M 12M

volume declines and from commodity inflation. Absolute (%) (3.9) (3.4) (1.5) 2.5

SPX (%) 9.3 1.0 8.1 20.2

For PBNA, we slightly revise down growth expectations in Q3 2026 due to consumer Relative (%) (13.3) (4.5) (9.6) (17.7)

pressure, and Q4 Operating Income to account for a difficult lap.