New York, February 3, 2026, 12:41 EST — Regular session
- PepsiCo shares jumped nearly 4% after the company unveiled U.S. snack price cuts and topped quarterly forecasts
- PepsiCo confirmed its 2026 targets, boosted its dividend, and approved a fresh $10 billion share repurchase program
- Investors are keeping an eye on whether reduced shelf prices will boost North American volumes heading into Super Bowl week
PepsiCo shares climbed 3.7% to $160.99 in midday trading Tuesday, hitting an intraday high of $163.30. The jump came after the company cut U.S. prices on certain snack brands and reported quarterly results that beat expectations.
The shift is significant now as food producers face growing pushback from consumers after years of rising prices. Volume — the actual units sold — has once more become the sticking point, with the U.S. snack aisle revealing the strain first.
David Wagner, Aptus Capital Advisors’ head of equity and portfolio manager, described the quarter as “pretty strong,” noting some signs that “trends may be headed in a better direction.” Still, he cautioned the stock needs solid “execution” on innovation, price cuts, and boosting productivity. PepsiCo plans to slash U.S. prices on key snack brands by as much as 15% to counter consumer resistance to rising grocery costs. Competitors like Procter & Gamble and Coca-Cola have also been lowering entry-level prices to protect their market share. The company’s fourth-quarter net revenue came in at $29.34 billion, surpassing analysts’ $28.97 billion estimate, while core EPS of $2.26 beat forecasts, according to London Stock Exchange Group data. (Reuters)
PepsiCo restated its 2026 goals in a filing with the U.S. Securities and Exchange Commission, aiming for 2%-4% organic revenue growth, excluding currency effects and acquisitions, alongside 4%-6% growth in core constant-currency EPS, an adjusted profit metric. CEO Ramon Laguarta said the company will speed up growth by “offering sharper value to address consumer affordability dynamics” while pursuing record productivity savings. The dividend was hiked 4% to $5.92 a share, starting with the June 2026 payout. Additionally, PepsiCo announced a new $10 billion share buyback program through Feb. 28, 2030, part of roughly $8.9 billion in planned cash returns for 2026. (SEC)
PepsiCo announced that new suggested retail prices for snacks like Lay’s, Doritos, Cheetos, and Tostitos are starting to drop across the U.S. this week, with cuts reaching nearly 15%. “Lowering the suggested retail price reflects our commitment to help reduce the pressure where we can,” said Rachel Ferdinando, noting that retailers ultimately decide the final price. (PepsiCo)
PepsiCo has raised prices to counter rising costs, though some areas in North America have seen demand dip as a result. The company is focused on defending market share without sparking a price war in stores.
The move coincides with PepsiCo’s push to streamline operations and boost brand investment through productivity improvements. Elliott Management, an activist investor, has been urging the company to enhance performance, while management highlights cost-cutting efforts alongside the brand “restaging.”
The tradeoff is straightforward: dropping prices risks tightening margins if sales don’t pick up fast enough, and retailers might hold back on passing every discount to consumers. On top of that, PepsiCo faces a shifting snack landscape as GLP-1 drugs—appetite suppressants for diabetes and weight loss—gain broader use.
Investors are looking for early clues that the price reset boosts unit demand without triggering a sharper hit to profits. They’ll also keep an eye on whether PepsiCo can stick to its 2026 targets as it pushes more aggressively into value during the first half.
As shelf prices adjust ahead of Super Bowl LX on Feb. 8 at Levi’s Stadium, the initial near-term test looms during this peak week for snack demand. (Nfl)
