PepsiCo (NASDAQ: PEP) Stock Analysis: UBS Rating, Price Target, and Q3 Earnings Outlook

Font: Financial Modeling Prep  • Oct 02, 2026

• UBS has reiterated its Buy rating on PepsiCo (NASDAQ: PEP) but adjusted its price target downwards from $159.00 to $145.00.
• PepsiCo stock has experienced a recent downturn, with a 7.94% drop over the past month, underperforming the broader market and the Consumer Staples sector.
• Investors are keenly awaiting PepsiCo's October 8 earnings report, with analysts forecasting earnings per share of $2.29 and revenue of $24.89 billion, though concerns exist regarding the company's ability to surpass expectations and its capital allocation strategies.

UBS maintains its Buy rating on PepsiCo but lowers its price target to $145.00 from $159.00. PepsiCo trades at $125.69 when the update is published. PepsiCo sells drinks and packaged foods, including Pepsi, Gatorade, Lay’s and Doritos, and competes with companies such as Coca-Cola (NYSE: KO) in beverages.

The lower target comes after a sell-off. PepsiCo closes at $126.72 on September 30, down 1.53% for the day, compared with losses of 0.25% for the S&P 500 and 0.86% for the Dow. Over the past month, PepsiCo falls 7.94%, while the Consumer Staples sector loses 4.32%.

PepsiCo’s October 8 earnings report may affect whether the decline continues. For the quarter ended September 2026, analysts expect earnings per share of $2.29, roughly unchanged from a year earlier, and revenue of $24.89 billion, up 4% year over year. Earnings per share measure profit divided by the number of shares outstanding.

As highlighted by Zacks, PepsiCo does not appear well positioned to beat earnings expectations. Results and management’s comments on business conditions could influence how investors respond. As highlighted by Seeking Alpha, stronger operating results may still leave concerns about capital allocation—the way PepsiCo spends and invests its money.

Investors are also watching cash flow and dividend safety. Cash flow shows how much cash the business generates to fund its operations and payments to shareholders. Those figures may help investors judge whether PepsiCo can support its dividend as it works through the recent share-price decline.