PepsiCo Q4 EPS Beats With 5.6% Sales Growth, $175 Target
PepsiCo reported Q4 non-GAAP EPS of $2.26, beating estimates with 5.6% revenue growth and accelerated organic expansion. Management guided for 2%-4% organic revenue growth and 4%-6% EPS growth in 2026, while shares trade under 20x forward earnings with a $175 price target implying roughly 10% upside.
1. Solid Q4 Financial Performance
PepsiCo posted Q4 non-GAAP EPS of $2.26, exceeding consensus, driven by 5.6% net revenue growth and margin expansion in core snacks and beverages.
2. 2026 Growth Guidance
Management sees 2%–4% organic revenue growth and 4%–6% EPS growth in 2026 as input costs stabilize and category mix shifts support margin gains.
3. Attractive Valuation
Shares trade under 20x forward earnings, and applying a 20x multiple to $8.75 consensus EPS implies a $175 price target, roughly 10% above current levels.
4. Portfolio Innovation Through Poppi
PepsiCo’s $1.95 billion-acquired functional soda brand Poppi has leveraged viral TikTok exposure and a last-minute Super Bowl ad purchase, and co-founder Allison Ellsworth has returned to Shark Tank as an investor, highlighting the company’s portfolio diversification strategy.