NEW YORK, January 1, 2026, 16:20 ET — Market closed
- PepsiCo shares closed down 0.44% at $143.52 on Dec. 31, the last U.S. session of 2025; U.S. markets are shut Jan. 1 for New Year’s Day.
- PepsiCo has guided for 2%–4% organic revenue growth in 2026 and outlined cost cuts and SKU reductions aimed at lifting margins.
- Investors look next to Jan. 2 U.S. data and PepsiCo’s Feb. 3 results for direction.
PepsiCo Inc (PEP) shares closed down 0.44% at $143.52 on Dec. 31, the final U.S. trading session of 2025. U.S. stock markets are closed on Thursday for New Year’s Day.
The pause leaves investors heading into 2026 focused on whether the snack-and-beverage maker can steady demand as consumers stay value-conscious. In consumer staples, the mix of pricing, volumes and input costs tends to decide who wins.
PepsiCo in December laid out a 2026 push centered on affordability, innovation and productivity savings, following engagement with activist investor Elliott Investment Management, and issued a preliminary outlook.
The company forecast 2026 organic revenue growth of 2% to 4% — organic meaning it excludes currency swings and acquisitions. PepsiCo also guided for 4% to 6% growth in core constant-currency earnings per share, which strips out certain items and neutralizes foreign-exchange effects.
“Today, we are announcing our plans and initiatives that aim to accelerate organic revenue growth … starting in 2026,” Chief Executive Ramon Laguarta said. SEC
PepsiCo said it has closed three manufacturing plants and is reducing nearly 20% of its U.S. stock-keeping units, or SKUs — distinct products and package sizes — by early 2026, aiming to fund sharper “everyday value” price tiers and more marketing. SEC
It also said it is targeting at least 100 basis points of core operating-margin expansion in aggregate over the next three fiscal years; a basis point is one-hundredth of a percentage point.
On cash, PepsiCo said it expects free cash flow conversion of at least 80% in 2026, including a final tax payment of nearly $1 billion tied to the 2017 Tax Cuts and Jobs Act. It also said it expects to increase annual cash returns to shareholders in 2026 and 2027, subject to board approval.
The year-end dip tracked a broader pullback on Dec. 31, with the S&P 500 down 0.74% and the Dow down 0.63%, market data showed. Coca-Cola, a key rival, also ended slightly lower.
PepsiCo has traded between $127.60 and $160.15 over the past 52 weeks. The stock’s 50-day moving average sits around $147 and its 200-day average around $142, levels chart-watchers often treat as near-term resistance and longer-term support.
Before the next session on Friday, traders will watch U.S. weekly jobless claims at 8:30 a.m. ET and November construction spending at 10:00 a.m. ET, both scheduled for Jan. 2; the ISM manufacturing report follows on Jan. 5.
PepsiCo’s next company catalyst is its Feb. 3 fourth-quarter and full-year report, due before the open with a results release and 10-K expected around 6:00 a.m. ET and an analyst call at 8:15 a.m. ET, the company said.
Before Friday’s reopening, investors will focus on whether the company’s affordability push is translating into steadier volumes without sacrificing margins, particularly in North America. A move back above the 50-day average near $147 or a break below the 200-day near $142 would sharpen that debate.
