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At CES 2026, PepsiCo announced a multi-year collaboration with Siemens and NVIDIA to deploy physics-based digital twins and AI across its plants and supply chain, after early U.S. pilots showed faster design cycles and lower capital spending needs.
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This move positions PepsiCo as an early large-scale adopter of industrial metaverse tools in consumer packaged goods, using high-fidelity 3D simulations to test facility changes virtually and identify most operational issues before they occur on the factory floor.
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Next, we’ll examine how PepsiCo’s use of Siemens’ Digital Twin Composer and NVIDIA Omniverse could reshape its technology-driven investment narrative.
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To own PepsiCo, you need to believe its global snacks and beverages franchises, supported by consistent dividends, can justify a premium valuation despite modest growth and high debt. The new Siemens and NVIDIA collaboration strengthens its cost and efficiency story, but the biggest near term swing factor still looks like execution on broader North America cost cuts, including SKU reductions, which carries some risk if it crimps future growth capacity.
The digital twin announcement fits alongside PepsiCo’s earlier plan to increase automation and digital tools across its North America supply chain after discussions with Elliott Investment Management. Together, these efforts frame a clearer near term catalyst around productivity and core operating margin expansion, even as the company balances those initiatives against the risk of cutting too deeply into its product and manufacturing base.
Yet investors should also be aware that productivity gains can come at a cost if PepsiCo trims capacity too aggressively…
Read the full narrative on PepsiCo (it’s free!)
PepsiCo’s narrative projects $101.5 billion revenue and $11.8 billion earnings by 2028. This requires 3.4% yearly revenue growth and about a $4.2 billion earnings increase from $7.6 billion today.
Uncover how PepsiCo’s forecasts yield a $155.91 fair value, a 11% upside to its current price.
Simply Wall St Community members have posted 42 fair value estimates for PepsiCo stock, ranging widely from US$116 to about US$247 per share. You can weigh those views against the tension between PepsiCo’s efficiency push and the risk that cost cuts and automation initiatives constrain its ability to respond to shifting consumer preferences over time.
