PepsiCo (PEP) Stock: Q4 Earnings Beat Expectations on Global Sales Strength

TLDR

• PepsiCo reported Q4 earnings of $2.26 per share, beating the $2.24 estimate, with revenue reaching $29.34 billion versus the expected $28.97 billion.
• Organic revenue grew 2.1% in the quarter, showing sequential acceleration across both North American and International businesses.
• The company confirmed its 2026 outlook with projected organic revenue growth of 2-4% and core constant currency EPS growth of 4-6%.
• PepsiCo increased its annual dividend by 4% to $5.92 per share, marking the 54th consecutive year of dividend increases.
• Europe, Middle East and Africa led regional performance with 12% revenue growth, while North American Foods grew 1.5%.

PepsiCo delivered better-than-expected results for the fourth quarter. The food and beverage company posted earnings of $2.26 per share on an adjusted basis.

PEPSICO $PEP Q4'25 EARNINGS HIGHLIGHTS

Revenue: $29.34B (Est. $28.90B) ; +5.60% YoY
Core EPS: $2.26 (Est. $2.23)
Organic rev: +2.10%
Buybacks: up to $10.00B through 2030

FY26 Guide:
Organic rev: +2% to +4% (Est. +2.68%)
Core constant currency EPS: +4%… pic.twitter.com/rCUjKypZxM

— Wall St Engine (@wallstengine) February 3, 2026

Wall Street had forecast $2.24 per share. Revenue came in at $29.34 billion, topping the $28.97 billion consensus estimate.

The company saw net income of $2.54 billion, or $1.85 per share. That’s up from $1.52 billion, or $1.11 per share, in the same quarter last year.

PepsiCo, Inc., PEP

Net sales increased 5.6% to reach $29.34 billion. Organic revenue, which excludes currency fluctuations and business changes, grew 2.1% during the period.

CEO Ramon Laguarta pointed to improving performance across the business. “Accelerated net revenue growth and strong productivity savings led to strong operating margin expansion and double-digit EPS growth in the fourth quarter,” he said.

The results showed sequential acceleration in both reported and organic revenue growth. North American and International businesses both contributed to the improvement.

Core constant currency EPS climbed 11% compared to the prior year quarter. The earnings beat came despite ongoing consumer affordability challenges in key markets.

Regional Performance Shows Wide Variance

Geographic results painted a mixed picture for the quarter. Europe, Middle East and Africa posted the strongest showing with 12% revenue growth.

PepsiCo Foods North America lagged behind with just 1.5% growth. The regional differences highlight varying consumer dynamics and competitive pressures across markets.

Drinks sales picked up momentum around the world. This helped offset softer performance in some food categories.

2026 Outlook and Shareholder Returns

PepsiCo stuck with the guidance it provided in December. The company expects organic revenue growth between 2% and 4% for 2026.

Core constant currency EPS should grow 4% to 6% this year. Management believes the business is positioned for better growth ahead.

Laguarta outlined the strategy for 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,” he explained.

The company boosted its dividend by 4% to $5.92 per share annually. This marks the 54th straight year PepsiCo has raised its dividend payment.

PepsiCo also approved a new $10 billion share buyback program. The authorization runs through February 2030.

Shares slipped 1% following the earnings announcement despite the beat on both top and bottom lines.

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