PepsiCo reported fourth-quarter earnings and revenue that exceeded analyst expectations, supported by higher organic sales growth across its global portfolio.
For the quarter ended December 27, 2025, the company reported adjusted earnings per share of $2.26, compared with market expectations of $2.24. Net revenue rose 5.6% year over year to $29.34 billion, above the $28.97 billion consensus estimate.
Net income attributable to the company increased to $2.54 billion, or $1.85 per share, from $1.52 billion, or $1.11 per share, in the prior-year quarter. Organic revenue, which excludes foreign exchange and acquisitions, increased 2.1%.
PepsiCo said reported and organic revenue growth accelerated sequentially, with contributions from both North American and international operations. Productivity savings contributed to operating margin expansion during the quarter.
The company said affordability remained a key factor affecting demand among lower- and middle-income consumers. Management confirmed plans to lower prices on select snack products in North America during 2026, with productivity savings expected to offset the impact.
Shares of PepsiCo have risen over 10% in the past 5 days.
PepsiCo reaffirmed its 2026 outlook. The company expects organic revenue growth of 2% to 4% and core constant-currency earnings per share growth of 4% to 6%. Capital spending is expected to remain below 5% of net revenue, and free cash flow conversion is projected at 80% or higher.
The company also announced a 4% increase in its annual dividend to $5.92 per share, effective with the June 2026 payment. This marks the company’s 54th consecutive annual dividend increase. PepsiCo authorized a new share repurchase program of up to $10 billion through February 2030.
#Investor Takeaway
The earnings beat and reaffirmed outlook indicate stabilizing revenue trends following slower volume performance in North America during 2025.
#Market Impact
The recent share price increase reflects a positive market response to the earnings and revenue beat. The dividend increase and share repurchase authorization reinforced shareholder return visibility.
#What’s Next
Investors will monitor first-quarter 2026 earnings results and updates on North American pricing actions. The next scheduled dividend payment is expected in June 2026.
#Broader Market Context
Other large packaged food and beverage companies have reported similar pricing and volume dynamics as consumers respond to higher shelf prices. Sector peers have emphasized cost controls and product mix adjustments.