PepsiCo, Inc. (NASDAQ: PEP) is closing in on year-end with investors juggling two big narratives: a newly outlined 2026 growth and profitability playbook shaped by activist pressure, and a fresh legal overhang tied to alleged pricing practices in U.S. retail. On Monday, December 22, 2025, PepsiCo shares traded around the mid-$146 range, down about 1% on the session, as the market digested a steady flow of strategy updates and analyst commentary heading into 2026. [1]
Below is a comprehensive roundup of the current news, forecasts, and analyses available as of 22.12.2025, plus what matters most for PepsiCo stock from here.
PepsiCo stock price today: where PEP stands on Dec. 22, 2025
As of Dec. 22, PepsiCo stock traded near $146.5 with roughly 2.9 million shares changing hands, after opening around $147.6 and trading in a roughly $146.4–$149.0 intraday band. [2]
Key market context investors are watching:
- 52-week range: roughly $127.6 to $160.2 (varies slightly by data source and update time). [3]
- Market cap: about $203B. [4]
- Dividend profile: roughly $5.69/share annually and a yield near 3.9%, with a recently listed ex-dividend date of Dec. 5, 2025. [5]
- Next major catalyst: PepsiCo’s Q4 and full-year 2025 results are scheduled for Feb. 3, 2026 (with a live Q&A planned that morning). [6]
Performance-wise, PEP has been “grinding” rather than sprinting. Some market trackers peg the stock down roughly ~3% over the past year, and commentary on Dec. 22 also noted it is down modestly in 2025. [7]
The biggest 2025-to-2026 storyline: PepsiCo’s Elliott-backed reset
Why Elliott matters for PEP right now
Activist investor Elliott Investment Management disclosed a $4 billion stake in PepsiCo earlier this year, arguing the company needed clearer strategy and stronger performance—particularly in North America. [8]
In early December, PepsiCo announced an updated set of priorities and a preliminary 2026 outlook after what the company described as a comprehensive review overseen by its board and supported by Elliott. [9]
What PepsiCo says it will do
PepsiCo’s plan is built around a familiar consumer-staples equation—protect volumes, simplify complexity, and expand margins—but with an unusually explicit emphasis on affordability (pricing architecture) and portfolio simplification.
Key elements PepsiCo has highlighted include:
- Sharper “everyday value” through targeted affordable price tiers by brand and channel. [10]
- Faster innovation with “simpler” and more “functional” offerings (examples named include Simply NKD Cheetos and Doritos, a restaging of Lay’s and Tostitos, and a 2026 launch of Doritos Protein). [11]
- Aggressive cost reductions and a review of the North America supply chain and go-to-market systems, which Reuters framed as a key part of the activist-influenced response. [12]
- Board refreshment as part of governance actions, with PepsiCo stating it intends to continue ongoing refreshment and that Elliott is supportive. [13]
Separately, reporting on the Elliott settlement has highlighted a consumer-facing outcome that tends to get immediate attention: cutting prices and eliminating a significant chunk of product offerings. The Associated Press reported PepsiCo plans to cut nearly 20% of its product offerings by early next year and redirect savings toward marketing and consumer value, though the company did not specify which products or how much pricing would change. [14]
The market’s big question: will “value” revive volumes without breaking margins?
This is the tightrope PepsiCo must walk in 2026. Cutting prices and simplifying SKUs can help demand and execution, but investors will be watching whether PepsiCo can deliver margin improvement at the same time—especially in the highly competitive U.S. beverage and snack aisles.
Barron’s captured this skepticism in its early take on the plan: the strategic direction signals urgency, but execution will determine whether the moves are truly enough to change the growth trajectory. [15]
PepsiCo’s official forecast: 2025 reaffirmed, 2026 growth expected to accelerate
In its Dec. 8 update, PepsiCo reaffirmed its 2025 outlook and laid out a preliminary 2026 view—important because it anchors both sell-side models and investor expectations heading into earnings season. [16]
What PepsiCo reaffirmed for 2025
For full-year 2025, PepsiCo reiterated expectations including:
- Low-single-digit organic revenue growth
- Core constant-currency EPS approximately even versus the prior year
- A core annual effective tax rate around 20%
- Total cash returns to shareholders of about $8.6B (about $7.6B dividends and $1.0B share repurchases)
- Foreign exchange headwinds of about 0.5 percentage points for reported net revenue and core EPS growth
[17]
PepsiCo also noted these assumptions implied a ~0.5% decline in 2025 core EPS versus 2024 core EPS of $8.16. [18]
PepsiCo’s preliminary 2026 outlook
For 2026, PepsiCo preliminarily expects:
- Organic revenue growth of 2% to 4%
- Core constant-currency EPS growth of 4% to 6%
- A core annual effective tax rate around 22%
- FX translation tailwind of ~1 percentage point
- Implied core EPS growth of ~5% to 7% in fiscal 2026 (or ~7% to 9% excluding the impact of global minimum tax regulations, per PepsiCo’s statement)
[19]
On capital allocation and cash generation, PepsiCo said it expects:
- Capital spending below 5% of net revenue in 2026
- Free cash flow conversion of at least 80% in 2026 (including a final tax payment of nearly $1B related to the Tax Cuts and Jobs Act of 2017), and at least 90% in fiscal 2027
- Expectations (subject to board approval) to increase annual cash returns to shareholders in 2026 and 2027
[20]
That 2026 framework is effectively PepsiCo telling markets: growth should re-accelerate, and profitability should improve, while the company keeps leaning into dividends and disciplined capital allocation.
New leadership and structural changes: PepsiCo reshapes North America and global roles
On Dec. 15, 2025, PepsiCo announced organizational changes aimed at advancing its growth strategy and transformation agenda—another signal that PepsiCo is trying to move quickly after activist scrutiny. [21]
Highlights include:
- Steven Williams (who served as CEO of PepsiCo North America over the past year) was appointed EVP & Vice Chairman, Global Chief Commercial Officer (CCO) and Corporate Affairs, effective Dec. 28, 2025. [22]
- Ram Krishnan will become CEO, PepsiCo North America, also effective Dec. 28, 2025, with a stated agenda to accelerate integration of Foods and Beverages operations where it creates value. [23]
- Under Krishnan’s organization, PepsiCo said Rachel Ferdinando will remain CEO of the U.S. Foods Category, Mike Del Pozzo will be promoted to President of the U.S. Beverages Category, and senior leaders will continue to run supply chain and go-to-market roles. [24]
- Athina Kanioura was appointed CEO of Latin America Foods (in addition to Chief Strategy & Transformation Officer), succeeding Paula Santilli, who will retire after a long career (transition support through July). [25]
Investors typically like leadership clarity, but they’ll also interpret this as another “execution moment”: a reorganized structure only helps PEP if it translates into faster decisions, better retail execution, and improved category performance.
Analyst forecasts and price targets: optimism is rising, but it’s not unanimous
Analyst positioning around PepsiCo has been active in December, and the pattern is telling: several firms have raised targets or reiterated bullish stances, often pointing to valuation support, the dividend, and a potential operational rebound into 2026.
Recent notable analyst actions (December 2025)
- Barclays raised its price target to $144 from $142 and maintained an Equal Weight rating (published Dec. 11). [26]
- Piper Sandler raised its price target to $172 from $161 and maintained an Overweight rating (Dec. 9). [27]
- Citigroup raised its price target to $170 from $165 and maintained a Buy rating (Dec. 17). [28]
Across broader consensus datasets, one Nasdaq-distributed summary put the average one-year price target around $160.36, with a wide range (roughly $118 to $181)—a reminder that even within “staples,” conviction varies depending on how analysts handicap volumes, pricing power, and productivity delivery. [29]
Another widely used market summary pegged a 12‑month target around $160.20 and a consensus “Buy” rating (based on the analysts included in that dataset). [30]
How to read the mixed signals
The dispersion matters:
- Targets in the high $160s to low $170s generally assume PepsiCo can stabilize volumes, keep innovation landing, and capture meaningful productivity—without sacrificing brand strength.
- More cautious targets (like $144) tend to reflect the view that the turnaround is real but not yet proven, and that upside may be capped until investors see cleaner volume trends and margin follow-through.
Legal and regulatory risk: a new lawsuit raises the temperature
While the operational story is front and center, PepsiCo also faces a legal headline that investors can’t ignore.
The new class action involving Walmart
On Dec. 16, 2025, Reuters reported PepsiCo and Walmart were hit with a class action lawsuit in federal court in New York alleging a decade-long price-fixing scheme that inflated prices of Pepsi soft drinks for consumers outside Walmart. The complaint alleges preferential wholesale pricing for Walmart while other retailers faced higher prices, and plaintiffs seek class status for millions of consumers dating back to January 2015. [31]
The unsealed FTC allegations (previously dropped)
Adding to the spotlight, The Wall Street Journal reported on an unsealed FTC lawsuit (dropped earlier in 2025) alleging PepsiCo worked to keep prices higher at other retailers to protect Walmart’s pricing advantage, describing Walmart as one of PepsiCo’s biggest buyers and citing allegations about tracking competitor pricing and promotions. [32]
Why it matters for PEP: even if these matters take time to resolve, litigation and regulatory scrutiny can introduce uncertainty around commercial practices with major customers—an area investors already watch closely in consumer staples.
Market sentiment check on Dec. 22: options activity spikes
One notable “real-time” datapoint on Dec. 22 came from options markets.
Schaeffer’s Research noted that PEP was among the most active names in options trading on Monday, with call and put volume each in the tens of thousands and activity running well above typical levels. The outlet added that the reason wasn’t immediately clear, while noting the stock had recently been discussed in investor circles as a potential 2026 buy candidate. [33]
This kind of surge doesn’t automatically imply bullish or bearish direction—but it often signals that traders are positioning ahead of catalysts, rebalancing hedges, or reacting to fast-moving headlines.
What investors should watch next: the 2026 “proof points”
With the stock sitting well below its 52‑week high, the next few months are likely to shape whether PEP is viewed as a stable dividend compounder—or a staples name stuck in a slow-growth rut.
Here are the clearest upcoming checkpoints:
- Feb. 3, 2026 earnings: Q4 + full-year 2025 results, plus updated disclosures and a view into how 2026 is starting. [34]
- Details behind “20% SKU reduction” and pricing moves: investors will want to know where PepsiCo is simplifying and how it protects brand equity while improving affordability. [35]
- Evidence that supply chain/go‑to‑market review is producing measurable savings: PepsiCo has explicitly tied competitiveness and margins to these changes. [36]
- North America integration under new leadership: the structure is changing; the question is whether execution improves faster than disruption costs. [37]
- Legal updates: any material developments in the Walmart-related class action or related scrutiny could affect sentiment. [38]
Bottom line for PepsiCo stock on Dec. 22, 2025
PepsiCo stock is entering 2026 with a clearer corporate narrative than it had earlier in the year: drive affordability, simplify the portfolio, cut costs aggressively, and lift margins, while maintaining a shareholder-friendly cash return framework. [39]
At the same time, the story is not “risk-free.” The plan must translate into better volumes and cleaner margins, and legal headlines add a layer of uncertainty that can weigh on multiples—especially when the market is trying to decide whether PepsiCo is cheap for a reason or set up for a staples rebound. [40]
References
1. www.investing.com, 2. www.investing.com, 3. stockanalysis.com, 4. stockanalysis.com, 5. stockanalysis.com, 6. www.pepsico.com, 7. www.investing.com, 8. apnews.com, 9. www.pepsico.com, 10. www.pepsico.com, 11. www.pepsico.com, 12. www.reuters.com, 13. www.pepsico.com, 14. apnews.com, 15. www.barrons.com, 16. www.pepsico.com, 17. www.pepsico.com, 18. www.pepsico.com, 19. www.pepsico.com, 20. www.pepsico.com, 21. www.pepsico.com, 22. www.pepsico.com, 23. www.pepsico.com, 24. www.pepsico.com, 25. www.pepsico.com, 26. www.tipranks.com, 27. www.investing.com, 28. www.tipranks.com, 29. www.nasdaq.com, 30. stockanalysis.com, 31. www.reuters.com, 32. www.wsj.com, 33. www.schaeffersresearch.com, 34. www.pepsico.com, 35. apnews.com, 36. www.reuters.com, 37. www.pepsico.com, 38. www.reuters.com, 39. www.pepsico.com, 40. www.barrons.com
