PepsiCo beats Q4 expectations with revenue growth acceleration

Investing.com -- PepsiCo, Inc. (NASDAQ: PEP) reported fourth-quarter 2025 results that exceeded analyst expectations, with adjusted earnings per share of $2.26, topping the consensus estimate of $2.24 and revenue of $29.34 billion, surpassing the expected $28.98 billion.

The beverage and snack giant posted organic revenue growth of 2.1% for the quarter, reflecting what the company described as "a sequential acceleration in reported and organic revenue growth" with improvements in both North American and International businesses. Reported revenue increased 5.6% compared to the same quarter last year, while core constant currency EPS grew 11%.

PepsiCo shares slipped 1% following the announcement.

"Accelerated net revenue growth and strong productivity savings led to strong operating margin expansion and double-digit EPS growth in the fourth quarter," said Chairman and CEO Ramon Laguarta in a statement.

The company affirmed its previously announced 2026 financial outlook, projecting organic revenue growth of 2-4% and core constant currency EPS growth of 4-6%. PepsiCo also announced a 4% increase in its annualized dividend to $5.92 per share, marking its 54th consecutive annual dividend increase.

"For fiscal 2026, we aim to accelerate growth by restaging large, global brands, introducing an expansive set of product innovation in emerging and functional spaces, and offering sharper value to address consumer affordability dynamics," Laguarta added.

PepsiCo's regional performance was mixed, with Europe, Middle East and Africa showing the strongest revenue growth at 12%, while PepsiCo Foods North America grew just 1.5%. The company also announced a new $10 billion share repurchase program extending through February 2030.

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