NEW YORK, Jan 21, 2026, 13:24 EST — Regular session
- PepsiCo shares slipped about 1% by midday, lagging behind as the broader market nudged upward
- Engie has signed a 10-year biomethane supply deal with PepsiCo UK, with production set to begin in 2027
- Traders are focused on the Feb. 3 results, looking for updates on pricing, volumes, and the outlook for 2026
PepsiCo shares fell 1.1% to $146.05 on Wednesday, retreating after Tuesday’s rally. The stock underperformed Coca-Cola, which edged down about 0.5%. Trading swung between $144.95 and $147.95, with roughly 2.9 million shares changing hands by early afternoon.
Wall Street’s main indexes clawed back about 1% after a sharp sell-off the day before, with investors reacting to new trade developments out of Davos. Even consumer staples, typically seen as safe bets during market turbulence, have been hit by volatility. 1
PepsiCo is approaching a critical update: it will report its Q4 and full-year 2025 results on Feb. 3. Alongside that, the company plans to revise the preliminary 2026 outlook it issued last December. At the time, PepsiCo projected organic revenue to grow between 2% and 4%, with core earnings per share—its adjusted profit measure—rising about 5% to 7%. The firm also targets expanding its core operating margin by at least 100 basis points over the next three fiscal years (one basis point equals 0.01%). CEO Ramon Laguarta emphasized that from 2026 forward, the focus will be on driving growth and improving margins. Meanwhile, Elliott partner Marc Steinberg pointed to “affordability” and cost-cutting as key factors in that strategy. 2
Engie revealed on Wednesday a 10-year biomethane supply contract with PepsiCo UK, calling it the first deal of its kind linking a biomethane producer with a British food company. Pierre Chambon, Engie’s director of renewable gases in Europe, told reporters this arrangement is “a model that we would like to replicate.” 3
The agreement covers 60 gigawatt hours of biomethane each year — a renewable gas made from organic waste — supplied by a new anaerobic digestion plant Engie is building in northern England. Engie aims to have the facility up and running in the latter half of 2027. The UK’s Department for Energy Security has pegged the project’s investment at 70 million pounds ($94 million).
PepsiCo’s UK gas deal comes across as a long-term strategic play rather than a quick earnings win. Investors tend to view it through the lens of cost control and sustainability efforts, paying closer attention to near-term factors like pricing tactics, promotions, and how steady demand for snacks and sodas stays amid cautious consumers.
The stock stayed steady, a reliable anchor in a choppy market—then abruptly slipped. PepsiCo’s intraday slide stood out, given the overall market was climbing. Seems some investors used the rally as a chance to lighten up rather than buy in.
PepsiCo’s main risk remains unchanged: pushing “everyday value” might force deeper discounts or more aggressive promotions, which could squeeze margins—especially if input costs rise. Legal issues are piling on, too. In December, PepsiCo and Walmart were hit with a consumer class action alleging price-fixing on soft drinks, claims both companies have denied. 4
Traders are scanning for early signs of North American demand, zeroing in on snacks and how the company adjusts package sizes and pricing to maintain volume. Currency fluctuations stay crucial for this global seller, despite the day’s focus on politics.
PepsiCo plans to release its report on Feb. 3, followed by an analyst Q&A. The company will then take the stage at the CAGNY conference on Feb. 18. Investors will watch these dates closely to gauge progress toward the 2026 playbook.
