NEW YORK, Feb 7, 2026, 16:18 (EST) — Market closed
- PepsiCo ended Friday at $170.49, up 1.8% for the session.
- PepsiCo’s new $10 billion buyback and its move to slash U.S. snack prices remain under the microscope as investors dig through the details.
- Investors are eyeing next week’s U.S. data and Coca-Cola’s earnings, both potential drivers for the consumer staples trade.
PepsiCo closed out Friday with a 1.8% gain at $170.49. U.S. markets are closed for the weekend.
Shares have jumped almost 10% since Monday’s close—a notable swing for a consumer staples stock like this, where moves are typically incremental, tied to modest shifts in growth or margins. 1
Why it matters now: PepsiCo is shifting focus, chasing volume growth after a long run of price hikes on store shelves. Investors are watching to see if the move brings shoppers back—and whether margins stay intact.
PepsiCo is slashing prices by up to 15% on key U.S. snacks—including Lay’s and Doritos—responding to what it called consumer pushback. “They’re feeling the strain,” said Rachel Ferdinando, the company’s U.S. foods chief, noting the new tags should hit shelves this week. CEO Ramon Laguarta pointed to “betting a lot on portion control,” while Aptus Capital Advisors’ David Wagner said much will depend on “innovation, price cuts, productivity.” 2
PepsiCo stuck to its outlook, calling for organic revenue growth of 2% to 4% in 2026 and forecasting core constant-currency EPS to climb 4% to 6%. That profit metric leaves out certain items and the impact of currency moves. The company also bumped up its annualized dividend, moving it to $5.92 per share from $5.69, kicking in with the anticipated June 2026 payout. On top of that, PepsiCo announced a fresh share buyback plan—authorizing up to $10 billion in repurchases through Feb. 28, 2030.
Elsewhere, the board set a quarterly dividend at $1.4225 a share, payable March 31 to holders on record as of March 6. Dividend timing like this draws attention from income investors, many of whom gauge PepsiCo’s value by its payout. 3
Wells Fargo’s Chris Carey bumped his price target up to $165 from $154, maintaining his Equal Weight rating. He pointed to PepsiCo’s own forecast: the company expects North American food volumes to swing into positive territory in the first quarter, with momentum building through the rest of the year. 4
UBS’s Peter Grom bumped his price target up to $190 from $170, sticking with his Buy rating after a fourth-quarter beat. Grom cited more consistent profit performance and noted the company’s 2026 targets remain intact. 5
Plenty of action on the competitive side as well. Coca-Cola’s earnings land on Tuesday, with options markets pointing to a potential 3% swing in shares by week’s end. That kind of volatility could ripple across to PepsiCo and other beverage stocks, too. 6
The risks here aren’t hard to spot. Lowering shelf prices might help defend market share and lift volumes, but it puts pressure on margins—especially with costs and demand still unpredictable. Should volumes fail to pick up, investors could see the price cut as a permanent reset, not a spark for growth.
Traders keep their eyes on the big economic signals before zeroing in on individual companies. For February, the Labor Department’s calendar puts the January jobs data on deck for Feb. 11, followed by CPI figures landing Feb. 13. Both reports carry weight for rate bets — and that has a direct line to the “defensive” appetite for consumer staples, names like PepsiCo. 7
