PepsiCo beat earnings and revenue estimates last quarter, and plans to lower prices this year to boost its growth.
Revenue was up 5.6% to US$29.34 billion, and above LSEG estimates of $28.97 billion. Earnings per share rose 11% to $2.26, besting estimates of $2.24.
“PepsiCo’s fourth quarter results reflected a sequential acceleration in reported and organic revenue growth, with improvements in both the North America and International businesses. Accelerated net revenue growth and strong productivity savings led to strong operating margin expansion and double-digit EPS growth in the fourth quarter,” said PepsiCo CEO Ramon Laguarta.
“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. We also aim to deliver a record year of productivity savings which will help fund investments to accelerate growth.”
The company said it will cut prices on some products from brands like Lay’s, Tostito’s, Dorito’s, and Cheetos, and will relaunch brands like Gatorade and Quaker later in the year. Price cuts of as much as 15% have begun rolling out this week ahead of Sunday's Super Bowl.
PepsiCo’s Foods North America segment’s revenue rose 1.5%, while Beverages North America’s was up 4%. Volumes fell by 1% and 4% respectively, however.
International Beverages Franchise revenue increased 3.5%, while Europe, Middle East, and Africa revenue surged 11%, and Latin America Foods revenue was up 11%. Total organic revenue climbed 2.1% last quarter.
Across 2026, PepsiCo projects organic revenue will increase by 2-4%, and earnings per share will rise by 4-6%.
PepsiCo (NASDAQ: PEP) shares closed 4.9% higher, but dipped 0.3% in after-hours trading. Its market capitalisation is $222.67 billion.
