NEW YORK, Jan 21, 2026, 13:24 EST — Regular session
- Shares of PepsiCo dipped roughly 1% by midday, underperforming as the broader market edged higher
- Engie inks a decade-long biomethane supply contract with PepsiCo UK, expecting production to start in 2027
- Traders are eyeing the Feb. 3 results for fresh details on pricing, volumes, and the 2026 outlook
PepsiCo shares dropped 1.1% to $146.05 on Wednesday, giving back some of Tuesday’s gains. The stock lagged behind Coca-Cola, which slipped roughly 0.5%. Trading ranged from $144.95 to $147.95, with around 2.9 million shares exchanged by early afternoon.
Wall Street’s key indexes rebounded around 1% following a steep drop the previous day, as investors digested the latest shifts in trade talk from Davos. Volatility has been rattling even traditionally safe havens like consumer staples, often a go-to when markets get unsettled. (Reuters)
PepsiCo is closing in on a key moment: it’s set to release its Q4 and full-year 2025 results on Feb. 3. The company will also update the preliminary 2026 outlook it shared in December. Back then, PepsiCo forecasted 2% to 4% organic revenue growth and around 5% to 7% growth in core earnings per share, its adjusted profit gauge. It also aims for at least 100 basis points of core operating margin expansion over the next three fiscal years (a basis point equals one-hundredth of a percentage point). CEO Ramon Laguarta said the focus from 2026 onward is on boosting growth and margins, while Elliott partner Marc Steinberg highlighted “affordability” and cost cutting as vital drivers. (Pepsico)
On Wednesday, Engie announced a 10-year biomethane supply deal with PepsiCo UK, marking what it described as the first agreement of its kind between a biomethane producer and a British food company. Pierre Chambon, Engie’s director of renewable gases in Europe, told reporters the setup was “a model that we would like to replicate.” (Reuters)
The deal involves 60 gigawatt hours of biomethane annually — a renewable gas produced from organic waste — coming from a new anaerobic digestion facility Engie is developing in northern England. Engie expects the plant to be operational by the second half of 2027. The UK’s Department for Energy Security values the project’s investment at 70 million pounds ($94 million).
For PepsiCo, the UK gas deal feels more like a strategic move stretching into the future than an immediate boost to earnings. Investors usually slot it under cost management and sustainability goals, focusing instead on short-term issues: pricing strategies, promotions, and whether demand for snacks and sodas holds steady as consumers remain cautious.
The stock has held steady like a staple in a volatile market—until it suddenly didn’t. PepsiCo’s intraday drop caught attention, especially since the broader market was stronger. It looks like some investors took advantage of the rally to trim their positions instead of buying more.
The downside risk for PepsiCo remains familiar territory: leaning into “everyday value” could mean heavier promotions or steeper price cuts, which complicates margin calculations—especially if input costs climb. Legal troubles add to the pressure; PepsiCo and Walmart faced a consumer class action in December accusing them of price-fixing on soft drinks, allegations both firms have denied. (Reuters)
Traders look for early signals on North American demand, focusing on snacks and how the company uses package sizes and pricing to hold volumes. Currency moves remain key for this global seller, even as politics dominate the day’s headlines.
PepsiCo is set to report on Feb. 3 and hold its analyst Q&A, then it’ll appear at the CAGNY conference on Feb. 18. These dates will serve as key moments for investors sizing up progress on the 2026 playbook.
