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PepsiCo Tops Q4 Forecasts, Lifts Dividend and Launches $10 Billion Buyback as 2026 Targets Hold

The company begins an Elliott-backed reset to simplify U.S. offerings, targeting price cuts to revive demand.

Overview

  • Revenue rose 5.6% to about $29.3 billion and adjusted earnings reached $2.26 per share, both ahead of Wall Street estimates.
  • Core volumes softened as snacks fell roughly 1% and North American beverages declined about 4%, while global beverage volumes inched up 1% and food fell 2%.
  • PepsiCo raised prices during the quarter by about 4.5% globally, including a 7% increase for North American beverages and a 1% uptick for snacks.
  • The board increased the annual dividend 4% to $5.92, extending a 54-year streak, and authorized a new $10 billion share repurchase program running through early 2030.
  • Management reaffirmed 2026 guidance for 2–4% organic revenue growth and 4–6% core constant-currency EPS growth, while executing plans to trim roughly 20% of U.S. SKUs, pursue targeted price cuts, accelerate innovation such as Pepsi Prebiotic and Doritos Protein, and lean on international strength led by 12% growth in EMEA.