PepsiCo’s Q2 results missed EPS estimates but beat revenue expectations, prompting mixed analyst reactions on domestic recovery.
RBC Capital lowered PepsiCo’s (NASDAQ:PEP) price target to $161 from $163 on July 10, 2026, while keeping a Sector Perform rating. The firm cited a mixed quarter, with international strength offsetting domestic weakness amid a challenging consumer environment.
PepsiCo reported Q2 core EPS of $2.20, below the $2.21 consensus, but revenue of $24.18B surpassed the $23.96B estimate. Deutsche Bank also cut its target to $155 from $168, maintaining a Buy rating, noting the North American recovery remains uneven despite international momentum.
For 2026, PepsiCo reaffirmed organic revenue growth of 2%-4% and core EPS growth of 4%-6%, with total shareholder returns of $8.9B, including $7.9B in dividends and $1.0B in buybacks.