PepsiCo (PEP) Stock: Fourth Quarter Results Top Wall Street Forecasts

TLDR

• PepsiCo posted Q4 earnings of $2.26 per share, surpassing analyst estimates of $2.24, while revenue of $29.34 billion beat forecasts.
• The company’s organic revenue climbed 2.1%, marking an acceleration in growth across North American and international markets.
• PepsiCo raised its dividend 4% to $5.92 per share, extending its streak to 54 consecutive years of dividend hikes.
• Europe, Middle East and Africa led regional growth at 12%, while North American Foods posted modest 1.5% gains.
• Management reaffirmed 2026 guidance calling for 2-4% organic revenue growth and approved a $10 billion buyback program.

PepsiCo wrapped up 2025 with solid quarterly performance that exceeded expectations. The beverage and snack maker earned $2.26 per share on an adjusted basis for the fourth quarter.

Analysts had projected earnings of $2.24 per share. The company brought in $29.34 billion in revenue, beating the consensus forecast of $28.97 billion.

Net income reached $2.54 billion, or $1.85 per share. This compared to $1.52 billion, or $1.11 per share, during the same period last year.

PepsiCo, Inc., PEP

Total net sales jumped 5.6% to $29.34 billion. Organic revenue growth, which strips out currency effects and business changes, came in at 2.1%.

CEO Ramon Laguarta highlighted the improving trends. The company saw sequential acceleration in both reported and organic revenue growth during the quarter.

Productivity improvements helped drive results. Core constant currency earnings per share rose 11% year-over-year.

The beverage business showed particular strength. Drinks sales picked up momentum in markets around the world, helping to power the overall results.

Mixed Regional Results Tell Different Stories

Geographic performance varied considerably across PepsiCo’s footprint. Europe, Middle East and Africa delivered the strongest numbers with 12% revenue growth.

North American Foods struggled by comparison, posting just 1.5% growth. The gap between regions reflects different consumer spending patterns and competitive dynamics.

International markets contributed meaningfully to the acceleration in organic revenue growth. This helped offset slower growth in some domestic categories.

Looking Ahead to 2026

PepsiCo maintained the financial outlook it shared in December. The company expects organic revenue to grow between 2% and 4% in 2026.

Core constant currency EPS should increase 4% to 6% this year. Management expressed confidence in the strategy going forward.

Laguarta outlined plans to drive growth. The company will focus on restaging major global brands and launching new products in emerging and functional spaces.

PepsiCo also plans sharper value offerings to address consumer affordability concerns. This strategy aims to accelerate growth as the year progresses.

Shareholder Rewards Continue

The dividend increase marked the 54th consecutive year PepsiCo has raised its payout. The new annual dividend stands at $5.92 per share, up 4% from the previous level.

The board authorized a new $10 billion share repurchase program running through February 2030. This demonstrates management’s commitment to returning cash to shareholders.

Shares fell 1% after the earnings release despite beating estimates on both earnings and revenue.

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