PepsiCo shares have lost 0.4% over the past year through July 28, badly trailing the S&P 500's 16.3% gain, but early signs of a volume recovery and a cheap valuation could fuel a turnaround in the second half of 2026. The company cut prices on certain items to win back cost-conscious shoppers, and that move is already lifting volumes—second-quarter organic revenue rose 2.4% year over year, with volume contributing about 1 percentage point, a sharp reversal from 2025 when price hikes added 4 points while volume subtracted 2 points. Management expects full-year revenue growth of 2% to 4%, and the stock trades at a price-to-earnings ratio of 18, well below its five-year median of 26 and the S&P 500's multiple of 28. Activist investor Elliott Investment Management, which held 1.3 million shares at the end of the first quarter, has pushed for faster growth and better profitability, and the company is also pursuing more innovation and cost cuts.
PepsiCo IncPrice cuts boost volume, aiding revenue growth and setting up a rebound.