PepsiCo (PEP, $110.71) Third Quarter Performance Beats Analysts' Expectations
PepsiCo, Inc. reported earnings higher than expected, as new strategies for the North American market paid off, along with growing sales in emerging markets.
Excluding one-time items, the company raked in $1.59 per share earnings, beating analysts' estimates of $1.57 for the third quarter ending September 8. Total net income of $2.49 billion (or $1.75 per share) was up a whopping 16% from $2.14 billion (or $1.48 per share) a year earlier.
Net revenue increased 1.5 percent to $16.49 billion, which is higher than analysts' average projection of $16.36 billion.
By shifting its beverage portfolio more towards healthier options such as non-carbonated drinks and sparkling water (including its launch of brands Bubly and Lifewtr), Pepsi managed to revive sales in an increasingly health-conscious consumer segment of North America. The firm's beverage sales in the region grew 2.3% in the third-quarter, albeit missing analysts' average estimate of a 5% increase, according to Thomson Reuters.
Due to decreasing consumer preference for salty snacks, Pepsi’s Frito-Lay sales fell short of analysts' projections, but still managed to grow in the positive territory ( at 2.6%) in North America.
In the emerging markets, organic sales rose 10% in the quarter on the back of expanding marketing and new product launches in Mexico, India and China.
PepsiCo said it now projects its full-year organic revenue ( which excludes acquisitions and forex effects) to grow at least 3 percent, up from a prior forecast of 2.3% increase.
PEP's RSI Oscillator ascending out of oversold territory
The RSI Indicator for PEP moved out of oversold territory on January 08, 2026. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 26 similar instances when the indicator left oversold territory. In of the 26 cases the stock moved higher. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on January 14, 2026. You may want to consider a long position or call options on PEP as a result. In of 88 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for PEP just turned positive on January 14, 2026. Looking at past instances where PEP's MACD turned positive, the stock continued to rise in of 48 cases over the following month. 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 319 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 6 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
PEP moved below its 50-day moving average on January 22, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for PEP crossed bearishly below the 50-day moving average on December 31, 2025. This indicates that the trend has shifted lower and could be considered a sell signal. In of 16 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
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 .
The Aroon Indicator for PEP entered a downward trend on January 20, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
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 (10.194) is normal, around the industry mean (6.070). P/E Ratio (27.487) is within average values for comparable stocks, (46.456). Projected Growth (PEG Ratio) (2.912) is also within normal values, averaging (6.374). PEP has a moderately high Dividend Yield (0.039) as compared to the industry average of (0.026). P/S Ratio (2.150) is also within normal values, averaging (3.148).
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 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 Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. PEP’s price grows at a lower 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 that the returns do not compensate for the risks. PEP’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 74, placing this stock worse than average.
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General Information
a provider of a diversified line of soft drinks and snack foods
Industry BeveragesNonAlcoholic
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