PepsiCo Stock Retains Some Fizz Ahead Of Q4 Earnings: Will Elliott Effect Show Growth?

PepsiCo's rebound is tightly linked to Elliott Management’s involvement, with investors betting that sharper pricing, cost cuts, and product refreshes can reaccelerate North American snacks and beverages.

• Wall Street expects fourth-quarter revenue to rise 4% to $28.95 billion and earnings per share to come in at $2.24.
• In December, PepsiCo decided to tweak its business after engaging with Elliott, which has bolstered investor interest.
• PepsiCo said it would offer sharper everyday value through a targeted approach to affordable price tiers across brands and channels.

PepsiCo’s stock has posted gains over the past three sessions, but shares slipped in overnight trading ahead of the soda and snacks giant’s fourth-quarter earnings report due Tuesday. Wall Street is closely watching the results for signs of renewed growth momentum, particularly after activist investor Elliott Management disclosed a stake in the company and began pushing for strategic changes.

Shares of PepsiCo are up more than 8% so far in 2026, marking a rebound after a three-year losing streak. In December, the company announced adjustments to its business strategy following engagement with Elliott, a move that helped revive investor interest. PepsiCo has said it plans to rethink innovation, productivity, and affordability initiatives, with a particular focus on its North American snacks and beverages division.

Wall Street’s Take On PEP Earnings

Barclays raised its price target on PepsiCo to $148 from $144 and maintained an ‘Equal Weight,’ according to The Fly. The firm said that it attributes the recent "enthusiasm" in the stock to "a flight to safety" and remains concerned about company and sector-level fundamentals.

BNP Paribas upgraded PepsiCo to ‘Outperform’ from ‘Neutral’ and raised the firm’s fiscal 2027 earnings per share estimate by about 5%, noting that activist involvement at Pepsi is driving a proverbial "win-win" setup.

Wall Street expects fourth-quarter revenue to rise 4% to $28.95 billion and earnings per share to come in at $2.24, compared to $1.96 a year earlier, according to data compiled by Fiscal AI.

Changes Under Elliott

PepsiCo said it would offer sharper everyday value through a targeted approach to affordable price tiers by brand and channel, and the company plans to lower prices on some food items in the coming year. PepsiCo has faced intense competition from Coca-Cola in the soda segment, where Coca-Cola has gained market share.

The company said that, as part of its business review, it has decided to aggressively reduce operating costs and improve operations. It closed three manufacturing plants and shut several manufacturing lines this year. 

As part of the agreement with Elliott, the company said that, building on the changes from July, it has recently introduced Simply NKD Cheetos and Doritos, restaged Lay’s and Tostitos, and is on track to launch Doritos Protein this year.

How Are Stocktwits Users Reacting?

Retail sentiment on PepsiCo jumped to ‘bullish’ from ‘bearish’ territory a week ago, with message volumes at ‘high’ levels, according to data from Stocktwits.

A user on Stocktwits said the stock might not rise further after strong results, given the pre-earnings rally.

Shares of PepsiCo have gained over 8% in the last 12 months.

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