Research
Research Alert: Pepsico Q1 2026: Another Quarter, Another Earnings Beat
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:PepsiCo (PEP) posted Q1 2026 adjusted EPS of $1.61 vs. $1.48 (+9%), well ahead of the $1.55 consensus. The beat was owing to a stronger-than-expected top line, partially offset by weaker-than-expected margins, as net sales rose 8.5% to $19.44B ($510M ahead of consensus) and gross margin contracted 60 bps to 55.2% (20 bps below consensus). PEP's Q1 volumes for Convenient Foods were up 4% Y/Y, while Beverage volumes were flat. PEP maintained its full-year 2026 net sales and EPS guidance. PEP shares are trading 1% lower in the pre-market, which we attribute to the fact the company did not raise full-year guidance in light of its sizable Q1 beat. We do not think investors should be alarmed, however, as PEP boasts one of the strongest earnings track records of any company over the past several years, having posted a quarterly earnings miss only twice since 2008. In our view, much of that can be attributed to management's long history of conservative guidance, and we think that is likely to be the case again.
$PEP