TLDR
- PepsiCo delivered Q4 earnings of $2.26 per share, exceeding the $2.24 analyst consensus, with revenue of $29.34 billion topping expectations.
- Organic revenue growth reached 2.1% as the company saw sequential acceleration across both domestic and international operations.
- The beverage giant increased its annual dividend by 4% to $5.92 per share, marking 54 consecutive years of dividend growth.
- Regional results varied widely, with Europe, Middle East and Africa growing 12% while North American Foods rose only 1.5%.
- PepsiCo maintained its 2026 outlook for 2-4% organic revenue growth and launched a $10 billion share repurchase program.
PepsiCo delivered impressive fourth quarter numbers that sailed past Wall Street expectations. The company reported adjusted earnings of $2.26 per share for the period.
This topped analyst predictions of $2.24 per share. Revenue climbed to $29.34 billion, beating the $28.97 billion estimate.
Net income for the quarter hit $2.54 billion, or $1.85 per share. That represented a substantial increase from $1.52 billion, or $1.11 per share, in the year-ago period.
Net sales grew 5.6% to reach $29.34 billion. Organic revenue, which excludes currency fluctuations and acquisitions, increased 2.1% during the quarter.
CEO Ramon Laguarta noted the improving business trends. The company experienced sequential acceleration in revenue growth across its portfolio.
Strong productivity savings helped expand operating margins. Core constant currency earnings per share jumped 11% compared to the prior year.
Beverage sales showed renewed vigor. The drinks business gained traction in markets worldwide, contributing to the overall momentum.
Regional Performance Paints Contrasting Picture
Geography made a big difference in PepsiCo’s quarterly performance. Europe, Middle East and Africa stood out with impressive 12% revenue growth.
North American Foods lagged considerably with just 1.5% growth. The disparity highlights different consumer dynamics across markets.
International businesses helped drive the sequential improvement in organic revenue. This offset weaker performance in certain domestic product categories.
The geographic mix demonstrates PepsiCo’s global reach. Different regions operate in varying economic conditions and face unique competitive pressures.
Strategy and Shareholder Returns Take Center Stage
PepsiCo kept its 2026 financial guidance unchanged from December. The company anticipates organic revenue growth of 2% to 4% for the year.
Core constant currency earnings per share should grow 4% to 6% in 2026. Management appears confident in execution despite consumer headwinds.
Laguarta detailed the growth strategy ahead. Plans include restaging major global brands and rolling out innovative products in emerging categories.
The company will also emphasize value propositions. This addresses ongoing consumer affordability challenges in key markets.
PepsiCo bumped up its dividend to $5.92 per share annually. The 4% increase extends the company’s dividend growth streak to 54 years.
The board greenlit a new $10 billion stock buyback program. This authorization extends through February 2030 and signals confidence in future cash generation.
Stock performance didn’t match the earnings beat. Shares declined 1% following the announcement despite exceeding both top and bottom line forecasts.
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