Analyst Caution Mounts for PepsiCo (NASDAQ:PEP) Amid Performance Concerns

Font: Financial Modeling Prep  • Oct 01, 2026

• Analysts have lowered price targets and downgraded PepsiCo (NASDAQ:PEP) due to recent weakness in its stock performance.
• The Frito-Lay North America business is reportedly struggling with sales, despite efforts to change ingredients and packaging.
• Concerns are rising regarding PepsiCo's operating cash flow and its ability to sustain future dividend payments, especially after a recent dividend raise amidst declining profits.

PepsiCo (NASDAQ:PEP) is a global company in the food and beverage industry. It is known for a wide variety of products, including soft drinks and snacks under brands like Frito-Lay. As a major company in the consumer staples sector, its financial performance is closely watched by investors and analysts.

On October 1, 2026, an analyst from Barclays lowered their price target for PepsiCo to $133.00 from a previous target of $142.00. At that time, the stock was trading at $126.72. This new, lower price target still represents a potential upside of approximately 4.96% from the stock's price when the target was announced.

This analyst adjustment reflects recent weakness in PepsiCo's stock performance. As highlighted by Zacks Investment Research, PepsiCo closed the most recent trading day with a 1.53% drop, underperforming the S&P 500. Over the last month, the stock's 7.94% decrease is larger than the loss seen in its sector.

Other analysts also express caution. J.P. Morgan analyst Andrea Teixeira downgraded PepsiCo to Neutral and cut the price target to $138.00. As reported by Gurufocus, Teixeira cited struggles within the Frito-Lay North America business, where changes to ingredients and packaging have not significantly improved sales.

Adding to these concerns, 24/7 Wall Street notes that PepsiCo recently raised its dividend despite a sharp decline in profits. This action raises questions about the company's operating cash flow, which is the cash generated from regular business activities, and its ability to support future dividend payments amid current challenges.