PepsiCo (PEP)
NASDAQConsumer StaplesBeverages - Non-alcoholicSnapshot 2026-09-04
$137.63-1.71%
Close 2026-09-04 · 1-day change
NASDAQConsumer StaplesBeverages - Non-alcoholicSnapshot 2026-09-04
QuarterlyIQ Insights · PEP
How strong the business is — where it ranks within its sector on capital efficiency and cash generation, and how well management has been executing.
How this business ranks within consumer staples on a research-validated quality screen. As of 2026-09-04.
The screen ranks PEP against its sector on four durable signals: share dilution, return on capital, free-cash-flow yield, and FCF margin. Historically the highest-quality names tended toward better typical outcomes and fewer bad years over multi-year holds (strongest at three years, modest at one), and that pattern showed up even before the price moved. It characterizes business quality, not price direction.
Each leg is a sector-relative percentile (higher is better); 4 of 4 legs were available for this name. The composite is built from these four; the raw value follows each percentile for context.
A forward quality tilt, not a price prediction, and context for your own research rather than a recommendation. Not investment advice.
How management runs the business: capital, margins, balance sheet, and how reliably they guide and deliver.
Each factor is a parallel diagnostic with a clear read of what it shows and how names like it have historically fared. Never aggregated into a single score.
Operating income rose in 1 of the last 3 quarter-over-quarter moves. Historically, Consumer Staples names rated strong grew net income 64% of the time over the next year (vs 53% for the rest of the cohort, n=2094).
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
A guidance track record builds as the company issues and delivers on guidance.
Priorities management has stated in recent disclosures, with status and evidence drawn from earnings calls, filings, and press releases.
Continue to grow organic revenue within the range of 2 to 4 percent for fiscal 2026, driven by effective net pricing, volume growth, and portfolio innovation.
Stated as a priority in 6 of last 6 quarters. Organic revenue grew 2.6% in 2026-Q1 and management affirms fiscal 2026 guidance for organic revenue growth between 2 and 4 percent. The trajectory is delivering with sequential acceleration in organic revenue growth and effective net pricing supporting this target.
“For 2026, the Company continues to expect: Organic revenue to increase between 2 and 4 percent;”
“For 2026, the Company continues to expect: Organic revenue to increase between 2 and 4 percent;”
“For fiscal 2025, we continue to expect to deliver low-single-digit organic revenue growth”
“For fiscal 2025, we remain confident in our ability to deliver low-single-digit organic revenue growth”
“For 2025, the Company continues to expect: A low-single-digit increase in organic revenue;”
“For 2025, the Company expects: A low-single-digit increase in organic revenue;”
Achieve core constant currency EPS growth between 4 and 6 percent in fiscal 2026, supported by operating profit growth and productivity savings.
Stated as a priority in 6 of last 6 quarters. Core constant currency EPS grew 5% in 2026-Q1 and management affirms fiscal 2026 guidance for growth between 4 and 6 percent. Operating profit increased 24% in 2026-Q1, supporting EPS growth. The trajectory is delivering with consistent EPS improvement.
Return about $8.9 billion to shareholders in 2026 through dividends of $7.9 billion and share repurchases of $1.0 billion.
Stated as a priority in 6 of last 6 quarters. Management expects to return approximately $8.9 billion to shareholders in 2026, including $7.9 billion in dividends and $1.0 billion in share repurchases, up from $8.6 billion total returns in 2025. The trajectory shows consistent commitment to shareholder returns.
Keep capital expenditures below 5 percent of net revenue in fiscal 2026 to maintain capex discipline.
Stated as a priority in 6 of last 6 quarters. Management consistently expects capital spending to remain below 5 percent of net revenue in 2026, maintaining capex discipline. This aligns with the company's guidance and financial planning.
Maintain a free cash flow conversion ratio of at least 80 percent in fiscal 2026 to ensure strong cash generation.
Stated as a priority in 6 of last 6 quarters. Management expects to maintain a free cash flow conversion ratio of at least 80 percent in 2026, consistent with prior guidance. This reflects ongoing focus on strong cash generation and operational efficiency.
“A free cash flow conversion ratio of at least 80 percent;”
Over the trailing year it converted 0.51x of net income into operating cash flow. Historically, Consumer Staples names rated fragile grew net income 46% of the time over the next year (vs 58% for the rest of the cohort, n=1569).
Not enough signal yet.
Not enough signal to read sensitivity to the broad stock market, the US dollar, real (inflation-adjusted) rates, long-term interest rates, Fed net liquidity (low R² over the window).
10 material management or governance events in the past 24 months, led by executive changes. Historically, Consumer Staples names rated neutral grew net income 51% of the time over the next year (vs 52% for the rest of the cohort, n=1251).
Not investment advice. As of 2026-09-04.
“For 2026, the Company continues to expect: Core constant currency EPS to increase between 4 and 6 percent;”
“For 2026, the Company continues to expect: Core constant currency EPS to increase between 4 and 6 percent;”
“For fiscal 2025, we continue to expect core constant currency EPS to be approximately even with the prior year.”
“For fiscal 2025, we remain confident in our ability to deliver core constant currency EPS to be approximately even with the prior year.”
“For 2025, the Company continues to expect: Core constant currency EPS to be approximately even with the prior year.”
“For 2025, the Company expects: A mid-single-digit increase in core constant currency EPS.”
“Total cash returns to shareholders of approximately $8.9 billion, comprised of dividends of $7.9 billion and share repurchases of $1.0 billion.”
“Total cash returns to shareholders of approximately $8.9 billion, comprised of dividends of $7.9 billion and share repurchases of $1.0 billion.”
“Total cash returns to shareholders of approximately $8.6 billion, comprised of dividends of $7.6 billion and share repurchases of $1.0 billion.”
“Total cash returns to shareholders of approximately $8.6 billion, comprised of dividends of $7.6 billion and share repurchases of $1.0 billion.”
“Total cash returns to shareholders of approximately $8.6 billion, comprised of dividends of $7.6 billion and share repurchases of $1.0 billion.”
“Total cash returns to shareholders of approximately $8.2 billion, comprised of dividends of $7.2 billion and share repurchases of $1.0 billion.”
“Capital spending to be below 5 percent of net revenue;”
“Capital spending to be below 5 percent of net revenue;”
“Capital spending to be below 5 percent of net revenue;”
“Capital spending to be below 5 percent of net revenue;”
“Capital spending to be below 5 percent of net revenue;”
“Capital spending to be below 5 percent of net revenue;”
“A free cash flow conversion ratio of at least 80 percent.”
“A free cash flow conversion ratio of at least 80 percent.”
“A free cash flow conversion ratio of at least 80 percent.”
“A free cash flow conversion ratio of at least 80 percent.”
“A free cash flow conversion ratio of at least 80 percent.”