Food and beverage giant PepsiCo is set to report its third-quarter financial results on October 8. The company enters the release backed by strong international growth, a gradual recovery in U.S. food sales volumes, and heavy investments to improve product affordability.

In the first half of the year, PepsiCo’s global food volumes rose 3% and beverage volumes increased 2%, marking the fastest pace since 2022, while total revenue grew roughly 7% and earnings per share (EPS) increased 6%. However, the recovery of the North American consumer segment remains the primary concern for investors: the company needs to expand volumes without relying heavily on margin-eroding discounts and promotions. For full-year 2026, management maintains its guidance of 2% to 4% organic revenue growth and 4% to 6% core EPS growth.

The company’s dividend status provides another compelling reason for investors to remain patient. PepsiCo reaffirmed its “Dividend King” status by raising its annualized payout by 4% to $5.92 per share, marking its 54th consecutive year of dividend increases. The stock offers an appealing forward dividend yield of 4.7% with a payout ratio of 68%, and the company plans to return a total of $7.9 billion in dividends and $1 billion in share repurchases in 2026.

Wall Street analysts maintain a consensus “Hold” rating on PEP stock. Among the 23 analysts covering the stock, 5 suggest a “Strong Buy,” 17 rate it a “Hold,” and 1 recommends a “Strong Sell”. The average target price of $148.14 implies an 18% upside from current levels, while the street-high estimate reaches $180.