PepsiCo, Inc. (NASDAQ:PEP) delivered better-than-expected fourth-quarter 2025 results, posting adjusted earnings per share of $2.26, ahead of the $2.24 consensus, while revenue reached $29.34 billion, beating forecasts of $28.98 billion.
The food and beverages group reported organic revenue growth of 2.1% for the quarter, which it said reflected “a sequential acceleration in reported and organic revenue growth,” supported by stronger trends across both its North American and international operations. Total reported revenue rose 5.6% year on year, while core earnings per share on a constant-currency basis increased by 11%.
Despite the earnings beat, PepsiCo shares fell about 1% following the results.
“Accelerated net revenue growth and strong productivity savings led to strong operating margin expansion and double-digit EPS growth in the fourth quarter,” chairman and chief executive Ramon Laguarta said in a statement.
The company reaffirmed its previously issued outlook for 2026, guiding for organic revenue growth of between 2% and 4% and core constant-currency EPS growth of 4% to 6%. PepsiCo also announced a 4% increase in its annual dividend to $5.92 per share, extending its track record to a 54th consecutive year of dividend growth.
“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.
Performance across regions was uneven. Europe, the Middle East and Africa delivered the strongest growth, with revenue up 12%, while PepsiCo Foods North America recorded more modest growth of 1.5%. The group also unveiled a new $10 billion share buyback programme running through February 2030.