Pepsi (PEP, $139.42) tops Q2 earnings and revenue expectations
PepsiCo released its latest quarterly earnings and revenue that topped analysts’ expectations, on the back of advertising and marketing impact.
The beverage giant’s adjusted earnings for the fiscal third-quarter came in at $1.56 per share, exceeding the $1.50 expected by analysts polled by Refinitiv.
Revenue of $17.19 billion also beat analysts’ estimate of $16.93 billion.
Pepsi’s organic revenue grew by +4.3% in the quarter.
The company’s increased advertising has been cited as a major drive behind consumers purchase of Pepsi products, as indicated by CFO Hugh Johnston in a CNBC interview.
Pepsi’s North American beverage business grew +3.5%.
Frito Lay North America, which includes brands like Cheetos and Doritos, experienced revenue growth of +5.5% for the quarter.
What’s more, Pepsi’s apparent drive to cater to an increasingly health-conscious population seems to be paying off. Revenue growth from its healthier snacks' brands like Bare and Off the Eaten Pat (alongwith its popular chip brands) helped offset the double-digit sales declines of Sabra hummus and guacamole dips. Pepsi owns a 50% stake in the hummus maker through a joint venture with Strauss Group.
The brand’s no-sugar line, Gatorade Zero, which launched in May 2018, topped $500 million in retail sales. Meanwhile, Bubly continues to gain market share in the flavored sparkling-water category against rivals like La Croix (as mentioned in CNBC).
PEP's RSI Oscillator peaks and leaves overbought zone
The 10-day RSI Oscillator for PEP moved out of overbought territory on February 13, 2026. This could be a sign that the stock is shifting from an upward trend to a downward trend. Traders may want to look at selling the stock or buying put options. Tickeron's A.I.dvisor looked at 39 instances where the indicator moved out of the overbought zone. In of the 39 cases the stock moved lower in the days that followed. This puts the odds of a move down at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on March 04, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on PEP as a result. In of 88 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for PEP turned negative on February 19, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 46 similar instances when the indicator turned negative. In of the 46 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where PEP declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 61 cases where PEP's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where PEP advanced for three days, in of 325 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 272 cases where PEP Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (10.730) is normal, around the industry mean (6.391). P/E Ratio (26.692) is within average values for comparable stocks, (34.239). Projected Growth (PEG Ratio) (3.203) is also within normal values, averaging (27.220). Dividend Yield (0.036) settles around the average of (0.024) among similar stocks. P/S Ratio (2.341) is also within normal values, averaging (3.283).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. PEP’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 73, placing this stock slightly better than average.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
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General Information
a provider of a diversified line of soft drinks and snack foods
Industry BeveragesNonAlcoholic
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