PepsiCo’s Next Big Rally Could Be Just Getting Started

Quick Read

• PepsiCo (PEP) reported Q1 revenue of $19.443B, up 8.5% YoY with core EPS beating consensus at $1.61 versus $1.54, while operating margin expanded 210 basis points to 16.5% driven by international strength with EMEA core operating profit up 29% and Asia Pacific Foods up 35%.

• International momentum and North America margin normalization are accelerating PepsiCo’s growth trajectory after consumer softness, supporting a 17.79% upside to the $175.82 price target.

• The analyst who called NVIDIA in 2010 just named his top 10 stocks and PepsiCo wasn't one of them. Get them here FREE.

PepsiCo (NASDAQ:PEP) is trading at $149.27 as of May 13, 2026, down 4.29% over the past week despite a strong Q1 earnings report. Our 24/7 Wall St. price target for PepsiCo is $175.82, implying 17.79% upside over the next 12 months. The recommendation is buy, with a high confidence reading of 90%.

24/7 Wall St. Price Target Summary

From February Highs to a May Pullback

PEP is up 19.13% over the past year and 4.93% year to date, though shares have cooled off from a 52-week high of $169.96.

Q1 FY2026, released April 23, 2026, was a clear beat. Core EPS came in at $1.61 versus the $1.54 consensus, and revenue of $19.443 billion grew 8.5% YoY. Operating margin expanded 210 basis points to 16.5%, and international momentum was the standout, with EMEA core operating profit up 29% and Asia Pacific Foods up 35%.

The analyst who called NVIDIA in 2010 just named his top 10 stocks and PepsiCo wasn't one of them. Get them here FREE.

Management affirmed fiscal 2026 guidance for 2-4% organic revenue growth and 4-6% core constant currency EPS growth, alongside the 54th consecutive annual dividend increase.

Why Bulls See a Breakout Ahead

The bull case rests on international acceleration and North America normalization. With EMEA revenue up 18%, LatAm Foods up 16%, and PBNA growing 9%, the geographic mix shift is doing real work. CEO Ramon Laguarta highlighted "an acceleration in both net revenue and organic revenue growth" with the convenient foods volume recovery finally taking hold.

The analyst consensus target of $172.10 sits well above current levels, with 4 Strong Buys, 4 Buys, 14 Holds, and 1 Sell. In our bull scenario, the stock reaches $183.28 over the next 12 months on poppi contribution, sustained margin expansion, and the $10 billion buyback authorization. The 54th consecutive dividend increase and a 3.68% yield offer a hard floor for income investors.