New York, Jan 15, 2026, 14:28 EST — Regular session
- PepsiCo shares climbed roughly 0.6% in afternoon trading, extending gains from Wednesday’s surge.
- UBS lowered its price target but maintained a Buy rating, citing a more challenging environment for staples.
- Investors are focused on food inflation and the company’s early-February results for hints on pricing and volumes.
Shares of PepsiCo (PEP.O) climbed roughly 0.6%, reaching $146.8 in afternoon trading Thursday.
This matters since PepsiCo stands as a key consumer-staples bellwether, with investors now debating how much “pricing power” remains as shoppers continue trading down.
Investors are turning their attention to the company’s upcoming earnings, hoping for updated data on U.S. snack volumes, promotions, and margins following months of discussion around affordability.
U.S. stocks climbed Thursday, fueled by a chip sector rally that ended a two-day skid. Investors shifted focus away from the largest tech giants. “Stocks are reacting positively … it’s attracted some investors back,” said Robert Pavlik of Dakota Wealth. (Reuters)
PepsiCo climbed 1.7% Wednesday to close at $145.92, marking its fifth consecutive daily rise, according to MarketWatch data, despite the S&P 500 slipping. The stock remains roughly 9% shy of its 52-week peak. (MarketWatch)
UBS analyst Peter Grom cut his price target to $170 from $172 while maintaining a Buy rating. He told clients the Consumer Staples sector faces a tough operating environment and challenging market conditions, but fundamentals might get better by 2026. (A price target reflects an analyst’s projection of a stock’s future trading level.) (TipRanks)
Siemens highlighted a separate tech advance, revealing that PepsiCo boosted throughput by 20% in just three months at a U.S. Gatorade plant. The secret? AI-powered “digital twins” — virtual models that let them test changes before implementing on the factory floor. They also pegged capital spending cuts at 10%-15% by validating designs digitally. (Siemens Blog Network)
Inflation remains a major unknown. On Wednesday, a Reuters analysis highlighted a 0.7% month-on-month surge in food prices for December — the largest since October 2022 — driving annual food inflation up to 3.1%, even as core inflation eased a bit. This spells trouble for packaged-food companies, where costs could outpace retail prices. (Reuters)
Policy risk is making a comeback. This week, the World Health Organization called on governments to hike taxes on sugary drinks, warning these beverages are growing cheaper across many countries. “Health taxes are not a silver bullet,” WHO Director-General Tedros Adhanom Ghebreyesus cautioned. (Reuters)
PepsiCo has been gearing up for the “value” battle. In a December update, following talks with activist investor Elliott, the company detailed cost cuts and moves to boost affordability. It projected 2026 organic revenue growth between 2% and 4%, with core EPS rising roughly 5% to 7%. (Organic revenue excludes currency effects and deals; core EPS reflects adjusted profit.) CEO Ramon Laguarta said the goal is to “accelerate organic revenue growth” starting in 2026. PepsiCo also confirmed it will release its Q4 and full-year 2025 results on Feb. 3 and will present at the CAGNY conference on Feb. 18. (PepsiCo)
On Thursday, peers showed varied moves. Coca-Cola (KO.N) slipped roughly 1.2%, Mondelez (MDLZ.O) edged up around 0.3%, while Keurig Dr Pepper (KDP.O) dipped about 0.2%.
The road to earnings isn’t smooth. Should food inflation remain elevated, PepsiCo might need to boost promotions to keep volumes up, squeezing margins in the process. On top of that, a wider push for soda taxes could spark fresh headline risk, just as the industry works to market “better-for-you” products without sacrificing price power.
PepsiCo’s earnings and guidance for Feb. 3 are next on the docket, with management set to speak at CAGNY on Feb. 18. Traders are eyeing both dates closely for clues on pricing, volumes, and just how much cost-cutting the company can squeeze in before it starts to hurt demand.
