New York, Jan 12, 2026, 19:10 ET — After-hours
- PepsiCo shares climbed 1% on Monday, outpacing most rivals in the drinks and snacks sector as trading volume increased
- Investors weigh an AI-driven boost to supply chains against patchy snack sales in North America
- Attention turns to PepsiCo’s Feb. 3 earnings and any news on pricing, promotions, and margins
PepsiCo Inc shares climbed 1% on Monday, holding steady after hours as investors digested news about the company’s AI-driven supply chain efforts. The stock ended the day up 1.04% at $141.36, outpacing a slightly stronger broader market. (MarketWatch)
This matters as PepsiCo approaches a crucial earnings report, with investors eager to see if North American volumes are holding steady and cost-cutting measures are proving effective. The company will release its fourth-quarter and full-year 2025 results on Feb. 3. (PepsiCo)
PepsiCo edged higher amid a cautious mood in consumer staples. The Consumer Staples Select Sector SPDR Fund climbed roughly 1.2% Monday, with Coca-Cola holding steady and Mondelez slipping about 0.3%.
PepsiCo is pushing a “digital-first” approach to planning its plants and warehouses, relying on “digital twins” — virtual models of facilities — to experiment with layout tweaks before committing to costly changes like new concrete or conveyor belts. CEO Ramon Laguarta highlighted the company’s move to “embed AI throughout our operations” through a partnership with Siemens and Nvidia. According to PepsiCo, this tech combo can identify most potential problems before any physical work kicks off. (PepsiCo)
The bigger near-term question is demand. A Zacks piece on Nasdaq noted that PepsiCo Foods North America has seen spotty volume growth as price-conscious shoppers hold back. This has pushed the company to focus more on “permissible” snacks—those marketed as better-for-you—including brands like Simply, SunChips, Stacy’s, Quaker Rice Cakes, Siete, and Sabra. (Nasdaq)
This shifts focus back to price-pack strategy — the amount of product in each bag and its cost — as well as promotional intensity, which can boost volumes but tighten margins.
PepsiCo must prove its digital investments deliver clear savings soon enough to impact 2026 results, or risk those gains being written off as a longer-term efficiency play investors might overlook.
If volumes don’t pick up, expect the usual downside: steeper promotions, a shift toward cheaper packs, and tighter margins in North America, even if international sales remain steady.
Investors have their sights set on Feb. 3, when PepsiCo releases earnings and revises its guidance. The focus will be on North America snacks volumes, how pricing stacks up against promotions, and if management positions the AI and digital twin initiatives as an immediate margin booster or a longer-term restructuring play.
