Updated: December 1, 2025
PepsiCo, Inc. (NASDAQ: PEP) remains one of Wall Street’s classic “defensive” stocks, but 2025 has turned into a transition year marked by slower growth, activist pressure, tariff headwinds and shifting consumer tastes. At the same time, the company is leaning on aggressive cost cuts, a rich dividend, and new efficiency targets to rebuild investor confidence.
Below is a detailed news-driven overview of PepsiCo stock as of December 1, 2025, including the latest price action, fresh analyst commentary, forecasts, dividend updates and key risks.
1. PepsiCo (PEP) stock price today
As of late trading on December 1, 2025, PepsiCo shares are changing hands at about $149.63, up roughly 0.6% on the day.
Over the last year, the stock is still down about 8%, even after a recent rebound, according to data from Investing.com. [1]
Key snapshot:
- Latest price: ~$149.6 per share
- 52‑week range: roughly $127.60 – $163.65, putting today’s price in the middle of its annual range [2]
- Market cap: around $200–205 billion [3]
- Beta (5‑year monthly): ~0.42, underscoring its defensive, lower‑volatility profile versus the broader market [4]
A recent MarketWatch review noted that even after a two‑day rally, PEP was still more than 10% below its 52‑week high of about $165 in late November, highlighting its underperformance relative to the S&P 500. [5]
2. What’s new on December 1, 2025? Fresh headlines and analysis
From December 1, 2025 onward, the key stories shaping the conversation around PepsiCo stock are:
2.1 Zacks: “Can PepsiCo Achieve Its Mid‑Teens PBNA Margin Ambition by 2026?”
A new Zacks analysis, widely syndicated on financial portals, focuses on PepsiCo’s goal to push PepsiCo Beverages North America (PBNA) margins into the mid‑teens by 2026. [6]
Key points from that coverage and related Zacks research:
- The Zacks Consensus Estimate for 2025 earnings implies a 0.7% year‑over‑year decline in EPS, while 2026 EPS is expected to grow about 5.9%, suggesting 2025 is a “reset” year before growth resumes. [7]
- Consensus sales estimates point to low‑single‑digit revenue growth (~1.7% for 2025), consistent with PepsiCo’s own guidance for low-single-digit organic growth. [8]
- Zacks currently assigns PepsiCo a Rank #2 (Buy), reflecting constructive expectations despite near‑term margin pressure. [9]
The takeaway: Wall Street expects only modest top‑line growth and flat‑to‑down EPS in 2025, but sees margin improvement and earnings growth resuming into 2026 if productivity and cost initiatives deliver.
2.2 Motley Fool: PepsiCo as a top “buy‑and‑hold forever” candidate
In a new Motley Fool piece titled roughly “If I Could Only Buy and Hold a Single Stock Today, This Would Be It,” the author picks PepsiCo as their one long‑term holding, citing its brand portfolio, defensive earnings profile and robust dividend history. [10]
While the article is opinion‑based rather than a formal rating, it reinforces a popular narrative: PEP as a core, conservative holding for investors who value stability and income more than fast growth.
2.3 Institutional money: mixed but active positioning
Several Form 13F‑driven updates hit the tape today via MarketBeat, showing that big institutional investors are actively re‑balancing PepsiCo exposure: [11]
- F M Investments LLC cut its PEP position by over 70% in Q2.
- Groupama Asset Management significantly trimmed its holdings.
- Northwestern Mutual Wealth Management reduced its stake by about 10.5%.
- Estabrook Capital Management, by contrast, boosted its position by roughly a third.
- West Family Investments also sold some shares.
These moves don’t change the fundamental story on their own, but they show institutional investors are far from unanimous—some view recent weakness as an opportunity, while others are reallocating away from PepsiCo.
2.4 Ongoing narrative: shifting consumer trends and GLP‑1 headwinds
Recent analysis syndicated through Finviz and other aggregators highlights a theme you’ll keep seeing:
- Articles like “Analysts Warn Shifting Consumer Trends Are Reshaping PepsiCo’s (PEP) Outlook” point to health trends, GLP‑1 weight‑loss drugs, and regulatory scrutiny of ultra‑processed foods as structural challenges for soda and snack volume growth. [12]
- An Investing.com note reported Piper Sandler trimming its PEP price target to $161 (from $162) specifically on GLP‑1 headwinds, though keeping an Overweight rating. [13]
The picture: long‑term consumption patterns are shifting, and the market is trying to handicap how much that will ultimately weigh on PepsiCo’s volumes and valuation.
3. Earnings recap: Q3 2025 and the 2025 “reset”
PepsiCo’s Q3 2025 results are still the anchor for current forecasts.
3.1 Headline numbers
Across Reuters, FoodNavigator, and other coverage, several key figures stand out: [14]
- Net revenue: ~$23.94 billion, slightly above analyst expectations (~$23.83 billion).
- Organic revenue growth: about 1.3%, with total reported net revenue up 2.6%.
- Core EPS:$2.29, beating consensus of about $2.26 by a few cents.
- Reported EPS:$1.90, down roughly 11%, heavily impacted by non‑cash charges.
- Operating income: down nearly 56% to about $1.8 billion, mainly due to $1.9 billion in brand impairment charges. [15]
So, the core business beat expectations modestly, but headline profitability looked ugly because of the impairment.
3.2 Volume vs pricing: the delicate balance
Q3 commentary also underscored the tension between price increases and volume declines: [16]
- Overall, both food and beverage volumes declined about 1%.
- North American foods revenue fell roughly 3%, while North American beverages managed low‑single‑digit growth in revenue despite weaker volumes.
- International beverages saw a small decline.
Investing.com contrasted PepsiCo with Coca‑Cola, noting that PepsiCo’s beverage volumes in North America were under more pressure as consumers pushed back on higher prices and traded down or reduced consumption. [17]
3.3 Guidance and the 2025 outlook
Across company guidance and external coverage: [18]
- PepsiCo is targeting low‑single‑digit organic revenue growth (roughly 2–4%) for 2025.
- The company has guided to flat core EPS in constant currency for the full year, a step down from earlier expectations of mid‑single‑digit EPS growth.
- Earlier in 2025, PepsiCo cut its profit outlook, citing tariffs, higher supply‑chain costs, weaker volumes, and macroeconomic uncertainty.
Taken together, 2025 is officially a “dig out and reset” year: earnings are under pressure, but management is positioning this as the base from which productivity and innovation can drive better growth into 2026 and beyond.
4. Activist pressure and strategic shake‑up
One of the biggest structural developments this year is the arrival of Elliott Investment Management.
- Elliott disclosed a roughly $4 billion stake in PepsiCo, making it one of the company’s largest shareholders. [19]
- The activist has reportedly pushed for sweeping changes including potentially refranchising bottling operations, exiting weaker brands, and accelerating cost‑cutting to unlock more than 50% upside in the stock over time. [20]
- PepsiCo has responded publicly by emphasizing its openness to shareholder feedback and pointing to ongoing plant closures, supply‑chain optimization and marketing efficiency efforts already underway. [21]
Activist campaigns like this rarely resolve overnight. In the near term, they tend to:
- Increase headline risk and volatility; but
- Also pressure management to improve returns on capital, prune portfolios and accelerate productivity.
For PEP, that activism narrative is now an integral part of the investment story.
5. Dividend: 53 years of raises, 3.8% yield – but a high payout
For many investors, PepsiCo is first and foremost a dividend stock, and 2025 has reinforced that identity.
5.1 Latest dividend decisions
In November 2025, PepsiCo’s board declared another quarterly dividend of $1.4225 per share (annualized $5.69), representing about a 5% increase year over year and marking the company’s 53rd consecutive annual dividend raise. [22]
Key stats:
- Annual dividend: ~$5.69 per share [23]
- Dividend yield: about 3.8–3.9% at current prices [24]
- Next ex‑dividend date:December 5, 2025; the next payment is scheduled for January 6, 2026. [25]
- Dividend growth streak:53 consecutive years of increases. [26]
5.2 Payout ratio and sustainability
The flip side: PepsiCo’s payout ratio, based on trailing earnings, is now above 100% (roughly 105–107%), meaning it’s returning more than all of its reported earnings as dividends. [27]
That doesn’t mean the dividend is immediately at risk—cash flow, balance sheet strength, and non‑cash impairments all matter—but it does signal:
- Less room for aggressive buybacks or big increases if earnings stagnate.
- A need for EPS growth and/or improved free cash flow to keep the dividend trajectory comfortably sustainable over the long run.
Many recent analyses, including those from Nasdaq and macro‑oriented sites, highlight the dividend as both a key attraction and a constraint for PepsiCo’s capital‑allocation flexibility. [28]
6. Analyst ratings and 12‑month price targets
Wall Street’s view of PepsiCo at the start of December 2025 is cautiously constructive.
6.1 Consensus price targets
Different data providers show slightly different numbers, but they all cluster around mid‑$150s:
- MarketBeat: 22 analysts, average 12‑month target $156.90 (range $117–$178), implying about 5% upside from current levels. [29]
- StockAnalysis: 14 analysts, consensus rating “Buy” and average target $157.79, suggesting roughly 5–6% upside. [30]
- MarketWatch: 24 analysts, average rating “Hold” with a mean target around $155.32. [31]
In other words, analysts generally see modest upside, not a screaming bargain—but they’re far from bearish.
6.2 Recent rating and target changes
A few notable moves underpin the mixed tone:
- Piper Sandler recently trimmed its PEP price target to $161, citing concerns that GLP‑1 weight‑loss drugs could dampen long‑term demand for sugary beverages and snacks, but it maintains an Overweight rating. [32]
- Citi, UBS and others have nudged targets lower over 2024–2025 but still rate the stock Buy, according to MarketBeat’s compilation of research notes. [33]
- DZ Bank upgraded PepsiCo from Hold to Buy in October, with a target around the mid‑$160s, after Q3 results topped expectations. [34]
Overall, the Street view can be summed up as: solid, income‑oriented blue‑chip with limited near‑term growth, some structural headwinds, and potential upside from cost‑cutting and activism.
7. Key risks and opportunities investors are watching
7.1 Major risks
From recent Reuters, Barron’s, Zacks and other coverage, several recurring risks stand out: [35]
- Slowing demand for soda and salty snacks
- Multiple quarters of volume declines highlight that years of price hikes and health trends are pressuring consumption, particularly in North America.
- Tariffs and trade tensions
- New and higher U.S. tariffs, especially on aluminum and other inputs, have forced PepsiCo to cut its profit outlook and warn of higher costs.
- Regulatory & health headwinds
- Coverage in Barron’s and Investopedia points to GLP‑1 weight‑loss drugs, sugar‑reduction initiatives, and planned restrictions on some food additives as issues that could affect long‑term demand and product mix. [36]
- High payout ratio
- With the dividend consuming more than 100% of trailing earnings, PepsiCo has less margin for error if earnings disappoint again.
7.2 Potential upside catalysts
On the flip side, recent bullish commentary highlights several upside levers: [37]
- Productivity and margin expansion
- Management is aiming for mid‑teens PBNA margins by 2026, backed by plant consolidation, supply‑chain optimization, AI‑driven digitization, and automation.
- Portfolio reshaping and activism
- Elliott’s pressure may accelerate portfolio pruning, refranchising and capital allocation discipline, potentially lifting the stock’s valuation multiple if successful.
- International growth & innovation
- While North America is soft, PepsiCo still sees growth opportunities in emerging markets, as well as in healthier snacks, low‑/no‑sugar beverages, and energy drinks.
- Defensive profile and dividend
- In a world of macro uncertainty, steady cash flows and a near‑4% yield keep PEP on the radar of income and defensive equity investors.
8. What this means for investors
Putting it all together:
- Valuation: With the stock around $149–150, consensus targets suggest only mid‑single‑digit price upside, plus a 3.8% dividend yield. [38]
- Story: 2025 is shaping up as a reset year—flat EPS, modest revenue growth, restructuring and brand impairments now, with hopes of margin expansion and healthier EPS growth in 2026. [39]
- Risk/reward:
- On the risk side, PepsiCo faces structural consumption challenges, tariff‑driven cost inflation, and a stretched payout ratio.
- On the reward side, it offers iconic brands, strong cash generation, a half‑century dividend track record, activist catalysts and relatively low share-price volatility.
For short‑term traders, PEP may look like a low‑beta, news‑driven name whose swings come around earnings, activist headlines and macro tariff developments. For long‑term, income‑focused investors, it continues to be framed—by analysts and commentators alike—as a steady but slower‑growing dividend compounder, with the big question being whether management (and now Elliott) can reboot growth without sacrificing that dividend.
Important: This article is for informational and educational purposes only and does not constitute financial, investment or trading advice. Always do your own research and consider consulting a licensed financial advisor before making investment decisions.
References
1. www.investing.com, 2. finance.yahoo.com, 3. finance.yahoo.com, 4. finance.yahoo.com, 5. www.marketwatch.com, 6. finviz.com, 7. www.nasdaq.com, 8. www.nasdaq.com, 9. www.nasdaq.com, 10. www.fool.com, 11. www.marketbeat.com, 12. finance.yahoo.com, 13. www.investing.com, 14. www.reuters.com, 15. www.ainvest.com, 16. www.foodnavigator.com, 17. www.investing.com, 18. www.linkedin.com, 19. nypost.com, 20. nypost.com, 21. www.investing.com, 22. www.pepsico.com, 23. www.nasdaq.com, 24. stockanalysis.com, 25. www.koyfin.com, 26. www.pepsico.com, 27. stockanalysis.com, 28. www.nasdaq.com, 29. www.marketbeat.com, 30. stockanalysis.com, 31. www.marketwatch.com, 32. www.investing.com, 33. www.marketbeat.com, 34. finviz.com, 35. www.reuters.com, 36. www.barrons.com, 37. www.reuters.com, 38. www.marketbeat.com, 39. www.reuters.com
