PepsiCo Q4 Results Beat Street, Backs Outlook; Lifts Dividend, Plans $10 Bln Buyback

(RTTNews) - Food and beverage giant PepsiCo, Inc. reported Tuesday higher profit and revenues in its fourth quarter, above market estimates. Further, the company maintained its fiscal 2026 outlook, expecting growth, lifted its dividend, and also announced up to $10 billion share buyback program.

In the pre-market activity on the Nasdaq, the shares were losing around 0.8 percent to trade at $153.90.

Chairman and CEO Ramon Laguarta stated, "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. As a result, we expect North America's business performance to improve and the International business to remain resilient this year."

Looking ahead for fiscal 2026, the company continues to expect organic revenue to increase between 2 and 4 percent and core constant currency earnings per share to increase between 4 and 6 percent.

Further, the company announced a 4 percent increase in its annualized dividend to $5.92 per share from $5.69 per share, effective with the dividend expected to be paid in June 2026.

Pepsi also announced a new share repurchase program of up to $10 billion of common stock through February 28, 2030.

In the fourth quarter, net income attributable to PepsiCo climbed to $2.54 billion from last year's $1.52 billion, Earnings per share grew 68 percent to $1.85 from $1.11 a year ago.

Core earnings per share were $2.26, compared to $1.96 last year.

The Wall Street analysts on average expected the company to report earnings of $2.24 per share. Analysts' estimates typically exclude special items.

Net revenue for the quarter grew 5.6 percent to $29.34 billion from prior year's $27.78 billion with growth in all regions. Organic revenue increased 2.1%.

The Street was looking for revenues of $28.97 billion for the quarter.

Convenient Foods volume dropped 2 percent in the quarter, while beverages volume gained 1 percent.

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