PepsiCo, Inc. (NASDAQ: PEP) is closing out the pre-Christmas trading week under a familiar spotlight for consumer-staples investors: stable cash flows and a long dividend record on one side, and a growing list of execution and legal questions on the other.
In the U.S. market’s early-close Christmas Eve session (1:00 p.m. ET close), PEP hovered around $143–$144 as investors digested the latest risk-focused commentary published today and refreshed analyst price targets that still imply ~10%+ upside into 2026. [1]
Below is a complete, publication-ready rundown of today’s (24.12.2025) stock action, the freshest forecasts/targets, and the most relevant news catalysts shaping PepsiCo’s outlook into 2026.
PepsiCo stock price today: PEP steadies after a sharp Tuesday drop
PEP traded around $143.64 during the Christmas Eve session, with intraday levels roughly in the $142.97–$143.99 range at the time of the latest market snapshot.
That relatively quiet tape matters because it follows a more decisive move the day before:
- On Dec. 23, 2025, PepsiCo shares fell 2.29% to $143.68, lagging a broader-market gain, according to a Zacks-authored market recap carried by Finviz. [2]
- Historical pricing data also shows PEP’s recent drift from the high-$140s/low-$150s earlier in December down to the mid-$140s area this week. [3]
Today’s muted movement is also happening in thin liquidity, with U.S. equities scheduled to close early at 1:00 p.m. ET on Dec. 24. [4]
What’s driving PepsiCo stock headlines right now
Even when the day’s price action is calm, PepsiCo’s story isn’t. Into year-end, three themes dominate how investors are framing PEP:
- An Elliott-linked operational reset and 2026 financial outlook
- Regulatory and litigation over pricing and retailer relationships (especially Walmart)
- Execution risk in North America snacks and beverages—where “value,” volumes, and market share are under pressure
Let’s unpack the freshest developments.
Catalyst 1: PepsiCo’s 2026 plan is now explicit—grow again, cut deeper, and simplify
PepsiCo’s most important fundamental update into 2026 remains the company’s December announcement outlining priorities to “enhance shareholder value,” following engagement with activist investor Elliott Investment Management. [5]
The 2026 growth guide: modest on the surface, meaningful if margins inflect
PepsiCo’s preliminary 2026 outlook calls for:
- Organic revenue growth of 2% to 4% in 2026
- Core constant-currency EPS growth of 4% to 6%
- An implied core EPS growth of ~5% to 7% (or ~7% to 9% excluding the impact of global minimum tax regulations, per the company’s framing) [6]
PepsiCo also signaled that acquisitions/divestitures and FX could add to reported growth, implying reported net revenue growth in a 4%–6% range under its assumptions. [7]
The operational “how”: SKU cuts, plant moves, automation, and value-tier pricing
The plan’s operational backbone is a push to simplify the portfolio and lower costs while defending affordability:
- PepsiCo said it is reducing nearly 20% of SKUs in the U.S. by early next year and has already closed plants and manufacturing lines, with savings intended to support marketing and consumer value. [8]
- The company highlighted an innovation pipeline featuring “simpler” and more functional offerings, including Simply NKD snack line updates and a 2026 launch of Doritos Protein, alongside restaging major brands like Lay’s and Tostitos. [9]
- PepsiCo expects at least 100 bps of core operating margin expansion in aggregate over the next three fiscal years (as stated in its outlook materials). [10]
A supply-chain and go-to-market review is underway—with a long-dated milestone
A critical watch item for longer-term investors: PepsiCo has said it is evaluating North America supply chain and go-to-market optimization, and intends to provide a comprehensive update in late 2026. [11]
Catalyst 2: The Walmart pricing controversy is now a front-and-center risk factor
The most sensitive “non-operations” theme for PEP into 2026 is legal/regulatory: allegations tied to pricing advantages and competitive dynamics involving Walmart.
FTC complaint details became public
Industry coverage of the matter notes that a newly unsealed FTC complaint alleged Walmart received preferential pricing/promotions from PepsiCo, tied to a case under the Robinson‑Patman Act that the FTC had previously dismissed earlier in 2025. [12]
A consumer class action followed
Separately, Reuters reported a consumer class action filed in federal court in New York accusing PepsiCo and Walmart of orchestrating a long-running price-fixing scheme that allegedly inflated Pepsi soft-drink prices at non-Walmart retailers; both companies disputed the allegations. [13]
Trade press coverage also emphasized that the class action leverages the unsealed FTC complaint’s narrative around a “price gap” and preferential treatment claims. [14]
Why this matters for the stock: even if financial impacts are uncertain today, legal overhangs can pressure valuation multiples, increase headline risk, and complicate retailer negotiations—especially for a mega-cap consumer staples name that typically trades on predictability.
Catalyst 3: Leadership and org changes aim to accelerate integrated execution
PepsiCo also announced a set of organizational changes designed to support growth and integration, including:
- Steven Williams moving into a new role as Executive VP & Vice Chairman, Global Chief Commercial Officer and Corporate Affairs, effective Dec. 28, 2025
- Ram Krishnan becoming CEO, PepsiCo North America on the same date, tasked with accelerating integration across foods and beverages where it creates value [15]
This matters because the company’s 2026 narrative hinges on better North America execution—precisely where investors have been debating whether PepsiCo can win back volumes without sacrificing margins.
Today’s forecasts: where Wall Street price targets sit on Dec. 24, 2025
If you’re writing about PepsiCo stock for Google News/Discover, this is the key “so what”: analyst targets remain meaningfully above the current price, but the consensus tone depends on the data source.
StockAnalysis.com (updated Dec. 24 intraday): “Buy,” ~$160 average target
StockAnalysis.com shows:
- Consensus rating: Buy
- Average price target:$160.20
- Target range:$140 to $178 [16]
It also lists several notable December actions, including:
- Citi maintaining a bullish stance with a target move $165 → $170 (Dec. 17)
- JPMorgan upgrading Hold → Buy with a target move $151 → $164 (Dec. 10) [17]
MarketBeat (updated Dec. 24 intraday): “Hold,” ~$159 average target
MarketBeat, aggregating a broader set of ratings, shows:
- Consensus rating: Hold (based on 22 ratings)
- Average 12‑month price target:$158.75
- Target range:$120 to $178 [18]
How to interpret the split: “Buy” vs. “Hold” isn’t necessarily contradictory—often it’s a function of (1) which analysts are included, (2) how stale older ratings are, and (3) whether the model uses mean vs. median targets. What’s consistent across both sources is that the midpoint target implies ~10% upside from the mid‑$140s level. [19]
Dividend and capital return: why PEP remains a “core holding” for many portfolios
Even amid operational change, PepsiCo’s dividend profile remains a major pillar of the investment case.
- Dividend.com showed PepsiCo with an annualized forward dividend of $5.69 and a forward yield around 3.97% as of Dec. 24. [20]
- In its own outlook materials, PepsiCo reiterated a priority to pay and increase annual dividends, referencing 53 consecutive years of increases (subject to board approval). [21]
- PepsiCo also outlined a cash discipline framework: capex below 5% of net revenue in 2026, and a free cash flow conversion ratio of at least 80% in 2026 (with an explicit note about a ~$1B final tax payment tied to the 2017 Tax Cuts and Jobs Act), rising to at least 90% in 2027. [22]
For income-focused investors, the question into 2026 is less “Will PepsiCo keep paying?” and more “Can PepsiCo protect volumes while it improves value and simplifies the portfolio—without compressing margins more than expected?”
The key Dec. 24 analysis: Trefis outlines three downside scenarios for PepsiCo stock
One of the most direct PEP-focused analyses published today came from Trefis, which framed three main risks:
- Antitrust litigation & a breakdown in pricing arrangements (with a near-term “legal risk” emphasis)
- Market share erosion & brand decay (positioning risk in core divisions)
- Pricing power collapse in snacks (margin pressure and potential EPS revisions) [23]
Trefis also contextualized what a “bad tape” can look like for even defensive megacaps, citing historical drawdowns (e.g., sharp declines during major market crises) and pointing to valuation metrics and margins as signals to monitor. [24]
Whether or not readers agree with the framing, it’s notable because it mirrors the exact pressure points investors are debating: legal overhang, North America competitiveness, and how far PepsiCo can push price/value changes without hurting profitability.
What to watch next: the calendar items that could move PepsiCo stock
With the early-close holiday session out of the way, these are the next major “scheduled” catalysts for PepsiCo shares:
- Feb. 3, 2026: PepsiCo is scheduled to publish Q4 and full‑year 2025 results (year ending Dec. 27, 2025), including a press release and 10‑K posting and an analyst Q&A. [25]
- Feb. 18, 2026: PepsiCo is slated to present at the CAGNY conference. [26]
- Late 2026: the company has pointed to a comprehensive update on the North America supply chain and go‑to‑market optimization initiative. [27]
In parallel, investors will keep tracking any meaningful updates tied to the Walmart-related litigation and pricing allegations, because that storyline can shift the narrative quickly—especially if it escalates beyond headlines and into tangible commercial or financial consequences. [28]
Bottom line: PepsiCo stock enters 2026 with upside on paper—and pressure in execution
On Dec. 24, 2025, PepsiCo stock is trading like a classic “transition-year” consumer staples name: analysts still model upside, the dividend remains a central anchor, and management has put a concrete 2026 framework on the table. [29]
But the company’s path to re‑rating likely depends on whether PepsiCo can deliver three things simultaneously in 2026:
- Affordability and simplification that actually improves volumes and brand momentum,
- Productivity gains that show up in margins and cash conversion, and
- Containment of legal/regulatory risks that could weigh on valuation and retailer relationships. [30]
This article is for informational purposes only and is not investment advice.
References
1. www.nasdaq.com, 2. finviz.com, 3. stockanalysis.com, 4. www.nasdaq.com, 5. www.pepsico.com, 6. www.pepsico.com, 7. www.sec.gov, 8. www.sec.gov, 9. www.sec.gov, 10. www.sec.gov, 11. www.sec.gov, 12. www.fooddive.com, 13. www.reuters.com, 14. www.grocerydive.com, 15. www.pepsico.com, 16. stockanalysis.com, 17. stockanalysis.com, 18. www.marketbeat.com, 19. stockanalysis.com, 20. www.dividend.com, 21. www.pepsico.com, 22. www.pepsico.com, 23. www.trefis.com, 24. www.trefis.com, 25. www.pepsico.com, 26. www.pepsico.com, 27. www.sec.gov, 28. www.reuters.com, 29. stockanalysis.com, 30. www.sec.gov
