PEP
PepsiCo, Inc.

PepsiCo, Inc.PEP

Consumer Defensive · Beverages - Non-Alcoholic
142.42USD
+3.75%
Nov 05, 2026
PEP overview ready
Global diversified food and beverage leader driving functional nutrition innovation
Diversified global food and beverage brand owner, innovator, acquirer, manufacturer, and route-to-market operator; it is not a functional-nutrition pure play.
Theme not measured
No economic group is assigned yet.
Advancing price action
Longer-term context reads early recovery, with a near-term setup of reclaim attempt.
Attractive valuation
Current market expectations look undemanding relative to how much growth and cash flow it delivers per turn of revenue multiple.
Solid fundamentals
Free cash flow yield is strong.
Primary risk
Commodity input cost volatility.
Market Nov 4Filing Sep 5Price action Nov 5Research Sep 2

Conviction Level

Theme Momentum has no canonical measurement for this company — a research-profile dimension, not an input to this score.

PriceAction9.4BusinessPerformance5.0BusinessQuality8.4Valuation8.5ThemeMomentum—Stable — Revenue is growing at a steady pace (+5.6% year over year). Diluted EPS is up 17% year over year ($2.23), but growth has slowed from +137%. — From filed financial statements. Describes the recent trajectory of the business, not the stock. 20 of the 100 Conviction points.

Conviction uses Price Action, Business Performance, Business Quality, Valuation. Theme Momentum is research context, not an input.

Theme momentumPrimary theme · group context, not entry timing
No economic group yet — pending research
Price
Loading price history…

Price Action

Advancing price action
Longer-term context reads early recovery, with a near-term setup of reclaim attempt.
EntryReset + recovery

The stock is still rebuilding below its long-term weekly base, and the recent reset toward the daily SMA200 aligned with support at the weekly EMA21. Daily structure is recovering above the fast averages, improving the current entry location.

Key Financials

Market Cap
$194.1B
Avg Volume (60D)
10.0M
60 sessions
Revenue Growth YoY
+2.3%
FY2025 vs FY2024
Gross Margin
+54.2%
Trailing twelve months
Operating Margin
+15.3%
Trailing twelve months
Free Cash Flow Yield
+5.4%
P/E
17.8x
EV / EBITDA
12.1x
EV / Sales
2.3x
Market metrics as of Nov 4, 2026
Financial results for the period ended Sep 5, 2026
Filed balance-sheet data as of Sep 5, 2026

Business Performance

Stable

Revenue is growing at a steady pace (+5.6% year over year). Diluted EPS is up 17% year over year ($2.23), but growth has slowed from +137%.

Latest reported: Q3 FY2026, ended Sep 5
Revenue growthGrowing
+5.6%
$25.3B in Q3 FY2026 · YoY
YoY growth, last 4 quarters
  1. n/a
  2. +8.5%
  3. +6.4%
  4. +5.6%
Earnings growthSlowing
+17%
Diluted EPS $2.23 vs $1.90 a year earlier · GAAP
Diluted EPS YoY (GAAP), last 4 quarters
  1. n/a
  2. +28%
  3. +137%
  4. +17%
Operating marginExpanding
16.9%
+1.9 pp YoY · gross margin 54.4% (+0.8 pp)

Business Quality

8.4 / 10

How well the business earns on its assets, converts earnings to cash and funds itself — read from its SEC filings.

Fundamentals & Valuation

Both valuation perspectives agree this company is cheap.
This company has a Cheap valuation stance because current market expectations look undemanding relative to how much growth and cash flow it delivers per turn of revenue multiple.

Company Research

Thesis
Diversified global food and beverage brand owner, innovator, acquirer, manufacturer, and route-to-market operator; it is not a functional-nutrition pure play. The story is still emerging, so the exposure is real but early.
Opportunity
Limited opportunity
Consumer demand is shifting packaged-food and beverage portfolios toward products positioned around functional ingredients, lower sugar, protein, fiber, hydration, and more permissive everyday consumption occasions.
Key risk
Commodity input cost volatility.

Economic classification

Loading the economic classification…

Business & Markets

Consumer Defensive · Beverages - Non-Alcoholic
What they do

PepsiCo, Inc. manufactures, markets, distributes, and sells a wide range of beverages and convenient foods globally through six geographic and product segments.

How it earns

The company generates revenue primarily through transactional sales of packaged food and beverage products to retailers and distributors.

Products & services
Cereals
Chips
Dips
Granola bars
Oatmeal
Pasta
Rice
Syrups and mixes
Refrigerated dips and spreads
Beverage concentrates
Fountain syrups
Ready-to-drink tea and coffee
Customers & end markets
Retail consumers
Foodservice operators
Distributors
Market position

PepsiCo is a global leader in the non-alcoholic beverages and convenient foods industry.

Demand drivers
Low cyclicality

Demand for consumer staples like food and beverages tends to be stable across economic cycles.