Goldman cuts target for PepsiCo stock from USD 180 to USD 165

Published on 10/26/2026 at 12:08 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

PepsiCo trimmed 2026 core EPS growth guidance to 2.5% to 3.5%. PepsiCo stock costs EUR 121.76 on October 26, 2026, 0.74 percent above Xetra close.

Guidance and valuation pressures

PepsiCo renewed its Taco Bell partnership through 2036 on October 22, 2026.
Fiscal 2026 core earnings growth guidance was reduced to 2.5% to 3.5% on October 8, 2026.
PepsiCo stock trades at EUR 121.76 at 12:03 p.m. CET at Lang & Schwarz on October 26, 2026, 0.74 percent above the Xetra close of October 23, 2026.
PepsiCo had a EUR 166.0 billion market capitalization as of October 26, 2026.

Fotorealistisches Bild eines dunklen Erfrischungsgetränks mit Eiswürfeln in einem klaren unmarkierten Glas, warme Hintergrundbeleuchtung und Holztheke — PepsiCo US7134481081 zeigt ein eisgekühltes Cola-Getränk in einem generischen Glas auf dunkler Holztheke, Illustration mit AI erstellt.

PepsiCo (ISIN US7134481081) was trading at EUR 121.76 at Lang & Schwarz on October 26, 2026, at 12:03 p.m. CET, 0.74 percent above the Xetra close of October 23, 2026 at EUR 120.86. The stock is digesting a lower earnings outlook and a fresh commercial agreement with Taco Bell.

On October 11, 2026, Goldman Sachs analyst Bonnie Herzog cut her PepsiCo price target from USD 180 to USD 165 while maintaining a Buy rating, according to Yahoo Finance. The report linked the lower target to pressure on margins and a weaker North American outlook.

Three events shaped the stock

The recent chronology shows why the earnings outlook matters. On October 8, 2026, PepsiCo reported third-quarter revenue of USD 25.27 billion, up 5.6 percent year over year, while core earnings per share reached USD 2.34, according to CNBC. On October 11, 2026, Goldman Sachs lowered its target to USD 165. On October 22, 2026, PepsiCo renewed its Taco Bell partnership through 2036, as listed by MarketScreener.

What does the guidance mean for margins?

PepsiCo now expects fiscal 2026 core earnings per share growth of 2.5 percent to 3.5 percent, down from the lower end of its previous 5 percent to 7 percent range. At the same time, management raised the net revenue growth outlook to 6 percent from a previous range of 4 percent to 6 percent, according to CNBC. The split points to sales resilience but weaker profit conversion.

PepsiCo's reported third-quarter operating profit rose 19 percent to USD 4.26 billion, while core operating profit increased 3 percent. Core operating margin contracted to 16.9 percent from 17.3 percent, with the company citing higher operating costs and investment spending in its third-quarter release carried by MarketScreener.

Next results date is January 7

PepsiCo is expected to report fourth-quarter 2026 results before the market opens on January 7, 2027, with a consensus earnings estimate of USD 2.24 per share, according to Earnings Whispers. That report will provide the next scheduled test of the cost actions and North American recovery.

Stock holds above the Xetra close

PepsiCo's primary listing is Nasdaq, and the stock's euro quote sits within its 52-week range of EUR 109.90 to EUR 144.66. The market capitalization was EUR 166.0 billion as of October 26, 2026.

PepsiCo was trading at EUR 121.76 at Lang & Schwarz on October 26, 2026, at 12:03 p.m. CET, 0.74 percent above the Xetra close of October 23, 2026 at EUR 120.86. The further course of trading is shown by the continuously updated real-time quote of PepsiCo stock.