PepsiCo’s (PEP) Q4 2025 earnings

PepsiCo On Tuesday, it reported quarterly earnings and revenue that beat analysts’ expectations, helped by improving organic sales across its businesses.

Demand for the company’s snacks has been sluggish as consumers balk at higher prices. This year, PepsiCo plans to lower prices on products from its North American foods division “to improve competitiveness and repeat purchases of our brands,” executives said in prepared remarks. Productivity savings will offset lower prices, they said.

Shares of the food and beverage giant fell more than 1% in pre-market trading.

Here’s what the company reported compared to what Wall Street was expecting, based on a survey of analysts conducted by LSEG:

• Earnings per share: $2.26 adjusted versus $2.24 expected
• Revenues: $29.34 billion versus $28.97 billion expected

Pepsi reported net income attributable to the company in the fourth quarter of $2.54 billion, or $1.85 per share, up from $1.52 billion, or $1.11 per share, the previous year.

Excluding restructuring charges, impairment and other items, the company had earnings of $2.26 per share.

Net sales It rose 5.6% to $29.34 billion. Organic revenue, which excludes foreign exchange, acquisitions and divestitures, rose 2.1% in the quarter.

“PepsiCo’s fourth-quarter results reflect a sequential acceleration in reported and organic revenue growth, with improvements in both North America and international businesses,” PepsiCo CEO Ramon Laguarta said in a statement.

However, the company is seeing a decline in volume, especially for its North American businesses. The measure does not include price fluctuations and foreign exchange rates to more accurately reflect demand.

The global volume of its foods fell 2% in the quarter, although the global volume of its beverages rose 1%.

PepsiCo’s domestic market was once again the weak point during the quarter, although it is showing signs of improvement. Inflation-weary shoppers are buying fewer PepsiCo snacks and drinks in a sign of consumer backlash over price hikes.

PepsiCo Foods North America, which includes brands from Quaker Oats to Cheetos, reported volume fell 1%. PepsiCo Beverages North America, which includes Gatorade, Starry and Poppi’s, saw volume shrink by 4%, even though its organic sales rose 2%.

Pepsi also reiterated the forecast for 2026 that the company provided in December. The company expects organic revenue to increase in a range of 2% to 4% and constant currency earnings per share to increase in a range of 4% to 6%.

In December, PepsiCo struck a deal with activist investor Elliott Investment Management, which disclosed a stake of about $4 billion in the company two months ago. As part of the agreement, Pepsi said it will reduce its product lineup in the United States by 20%, cut costs across its food and beverage operations and lower snack prices. Elliott did not have any seats on PepsiCo’s board of directors.

As Pepsi implements that plan this year, the company expects its North American business to improve, while its international divisions remain “resilient,” according to Laguarta.