PepsiCo Reports Fourth Quarter and Full-Year 2025 Results; Affirms 2026 Financial Outlook; Announces Annual Dividend Increase
Reported (GAAP) Fourth Quarter and Full-Year 2025 Results
| Fourth Quarter | Full-Year | |
| Net revenue performance | 5.6% | 2.3% |
| Foreign exchange impact on net revenue | 2% | —% |
| Earnings per share (EPS) | $1.85 | $6.00 |
| EPS change | 68% | (14)% |
| Foreign exchange impact on EPS | 5% | —% |
Organic/Core (non-GAAP) Fourth Quarter and Full-Year 2025 Results
| Fourth Quarter | Full-Year | |
| Organic revenue performance | 2.1% | 1.7% |
| Core EPS | $2.26 | $8.14 |
| Core constant currency EPS change | 11% | —% |
PURCHASE, N.Y. – February 3, 2026 – PepsiCo, Inc. (NASDAQ: PEP) today reported results for the fourth quarter and full-year 2025.
“PepsiCo’s fourth quarter results reflected a sequential acceleration in reported and organic revenue growth, with improvements in both the North America and International businesses. Accelerated net revenue growth and strong productivity savings led to strong operating margin expansion and double-digit EPS growth in the fourth quarter,” said Chairman and CEO Ramon Laguarta.
Laguarta continued, “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. We are affirming the fiscal 2026 financial guidance provided in December and are pleased to announce a 4 percent increase in our annualized dividend per share beginning with the June 2026 payment, representing our 54th consecutive annual increase.”
Summary Fourth-Quarter 2025 Performance
| Revenue | Organic % Change | Volume(a) | ||||
| GAAP Reported % Change | Percentage Point Impact | % Change | ||||
| Foreign Exchange Translation | Acquisitions and Divestitures | Convenient Foods | Beverages | |||
| PepsiCo Foods North America (PFNA) | 1.5 | — | (2) | (1) | (1) | |
| PepsiCo Beverages North America (PBNA) | 4 | — | (2) | 2 | (4) | |
| International Beverages Franchise (IB Franchise) | 3.5 | (2) | — | 2 | 3 | |
| Europe, Middle East and Africa (EMEA) | 12 | (7) | — | 5 | (5) | 1 |
| Latin America Foods (LatAm Foods) | 11 | (6) | — | 5 | (1) | |
| Asia Pacific Foods | 5 | — | (1) | 4 | 4 | |
| Total | 6 | (2) | (1) | 2 | (2) | 1 |
Operating Profit & EPS
| GAAP Reported | Percentage Point Impact | Core Constant Currency | ||
| % Change | Items Affecting Comparability | Foreign Exchange Translation | % Change | |
| PFNA | (6) | 4 | — | (2) |
| PBNA | n/m | n/m | — | 33 |
| IB Franchise | 116 | (104) | (2) | 9 |
| EMEA | 72 | (35) | (14) | 23 |
| LatAm Foods | 15 | (0.5) | (8) | 6 |
| Asia Pacific Foods | n/m | n/m | n/m | n/m |
| Corporate unallocated expenses | 3 | (5) | — | (2) |
| Total | 58 | (40) | (4) | 13 |
| EPS | 68 | (52) | (5) | 11 |
(a) Excludes the impact of acquisitions and divestitures. In certain instances, the volume change shown here differs from the impact of organic volume change on net revenue performance disclosed in the Organic Revenue Performance table on page A-8, due to the impacts of product mix, nonconsolidated joint venture volume, and, for our franchise beverage businesses, temporary timing differences between bottler case sales (BCS) and concentrate shipments and equivalents (CSE). We report net revenue from our franchise beverage businesses based on CSE. The volume sold by our nonconsolidated joint ventures has no direct impact on our net revenue.
n/m – Not meaningful due to an operating loss in the prior year.
Note: Amounts may not sum due to rounding.
Organic revenue and core constant currency results are non-GAAP financial measures. Please refer to the reconciliation of GAAP and non-GAAP information in the attached exhibits and to the Glossary for definitions of “Organic revenue performance,” “Core” and “Constant currency.”
Discussion of Fourth-Quarter 2025 Reported Segment Results:
In addition to the reported net revenue performance as set out in the tables on pages 2 and A-8, reported operating results were driven by the following:
PFNA
Operating profit decreased 6%, primarily reflecting certain operating cost increases, a 6-percentage-point impact of a prior-year gain on remeasurement of our previously held 50% equity ownership in Sabra Dipping Company, LLC, higher restructuring charges and a 4-percentage-point impact of a prior-year insurance recovery related to the voluntary recall of certain bars and cereals in our PFNA segment (Quaker Recall). These impacts were partially offset by productivity savings.
PBNA
Operating profit improvement primarily reflects a favorable impact of prior-year impairment and other charges associated with our Tropicana Brands Group (TBG) investment and receivables related to the sale of Tropicana, Naked and other select juice brands (Juice Transaction), effective net pricing, productivity savings, an 11-percentage-point impact of gains on asset sales and a favorable impact of the settlement of pension-related liabilities from previous acquisitions. These impacts were partially offset by certain operating cost increases, a decline in organic volume, acquisition and divestiture-related charges related to our VNGR Beverage, LLC (poppi) acquisition and a 7-percentage-point impact of higher commodity costs, driven by an 11-percentage-point impact of tariffs.
IB Franchise
Operating profit increased 116%, primarily reflecting a favorable impact of a prior-year indirect tax reserve, net revenue growth and lower advertising and marketing costs.
EMEA
Operating profit increased 72%, primarily reflecting a favorable impact of prior-year impairment and other charges associated with our TBG investment and Juice Transaction-related receivables, productivity savings, effective net pricing, a 14-percentage-point impact of favorable foreign exchange translation and lower advertising and marketing expenses. These impacts were partially offset by certain operating cost increases, a 16-percentage-point impact of higher commodity costs, primarily potatoes, cooking oil and dairy, and higher restructuring charges.
LatAm Foods
Operating profit increased 15%, primarily reflecting effective net pricing, productivity savings and an 8-percentage-point impact of favorable foreign exchange translation. These impacts were partially offset by certain operating cost increases, a decline in organic volume and a 6-percentage-point impact of higher commodity costs.
Asia Pacific Foods
Operating profit improvement primarily reflects productivity savings, lower advertising and marketing costs, net revenue growth and a favorable impact of lower commodity costs, primarily packaging materials and potatoes. These impacts were partially offset by certain operating cost increases.
Summary Full-Year 2025 Performance
| GAAP Reported % Change | Percentage Point Impact | Organic % Change | % Change | |||
| Foreign Exchange Translation | Acquisitions and Divestitures | Convenient Foods | Beverages | |||
| PFNA | — | — | (2) | (2) | (2) | |
| PBNA | 1.5 | — | — | 1 | (3) | |
| IB Franchise | 2 | — | — | 3 | 1.5 | |
| EMEA | 8 | (2.5) | — | 6 | (5) | — |
| LatAm Foods | — | 5 | — | 4.5 | 1 | |
| Asia Pacific Foods | 2 | 1 | (1) | 1.5 | 4 | |
| Total | 2 | — | (1) | 2 | (2) | — |
Operating Profit & EPS
| GAAP Reported % Change | Percentage Point Impact | Core Constant Currency % Change | ||
| Items Affecting Comparability | Foreign Exchange Translation | |||
| PFNA | (7) | 0.5 | — | (6) |
| PBNA | (53) | 59 | — | 6 |
| IB Franchise | 21 | (12) | 0.5 | 9 |
| EMEA | 7 | 8 | (5) | 10 |
| LatAm Foods | (2) | 4 | 6 | 8 |
| Asia Pacific Foods | (2) | 21 | 1 | 20 |
| Corporate unallocated expenses | 6 | 1 | — | 7 |
| Total | (11) | 12 | — | 2 |
| EPS | (14) | 13 | — | — |
(a) Excludes the impact of acquisitions and divestitures. In certain instances, the volume change shown here differs from the impact of organic volume change on net revenue performance disclosed in the Organic Revenue Performance table on page A-8, due to the impacts of product mix, nonconsolidated joint venture volume, and, for our franchise beverage businesses, temporary timing differences between bottler case sales (BCS) and concentrate shipments and equivalents (CSE). We report net revenue from our franchise beverage businesses based on CSE. The volume sold by our nonconsolidated joint ventures has no direct impact on our net revenue.
Note: Amounts may not sum due to rounding.
Organic revenue and core constant currency results are non-GAAP financial measures. Please refer to the reconciliation of GAAP and non-GAAP information in the attached exhibits and to the Glossary for definitions of “Organic revenue performance,” “Core” and “Constant currency.”
Discussion of Full-Year 2025 Reported Segment Results:
In addition to the reported net revenue performance as set out in the tables on pages 4 and A-8, reported operating results were driven by the following:
PFNA
Operating profit decreased 7%, primarily reflecting certain operating cost increases, including strategic initiatives, higher restructuring charges and the decrease in organic volume. These impacts were partially offset by productivity savings and a favorable impact of the prior-year charges associated with the Quaker Recall.
PBNA
Operating profit decreased 53%, primarily reflecting impairment charges related to the Rockstar brand. Operating profit also decreased due to certain operating cost increases, acquisition and divestiture-related charges related to our poppi acquisition, the decline in organic volume and a 5-percentage-point impact of higher commodity costs, driven by a 6-percentage-point impact of tariffs. These impacts were partially offset by a favorable impact of prior-year impairment and other charges associated with our TBG investment and Juice Transaction-related receivables, the effective net pricing, productivity savings, and lower advertising and marketing expenses.
IB Franchise
Operating profit increased 21%, primarily reflecting a favorable impact of a prior-year indirect tax reserve, the net revenue growth and lower advertising and marketing costs, partially offset by an impairment charge related to the Rockstar brand.
EMEA
Operating profit increased 7%, primarily reflecting the effective net pricing, productivity savings, a favorable impact of prior-year impairment and other charges associated with our TBG investment and Juice Transaction-related receivables and a 5-percentage-point impact of favorable foreign exchange translation. These impacts were partially offset by certain operating cost increases, a 22-percentage-point impact of higher commodity costs, primarily dairy, potatoes and cooking oil, an impairment charge related to the Rockstar brand and higher restructuring charges.
LatAm Foods
Operating profit decreased 2%, primarily reflecting certain operating cost increases, a 6-percentage-point impact each of higher commodity costs and unfavorable foreign exchange translation and an unfavorable impact of an indirect tax audit settlement, partially offset by productivity savings and the effective net pricing.
Asia Pacific Foods
Operating profit decreased 2%, primarily reflecting certain operating cost increases, an impairment charge related to the Be & Cheery brand and the unfavorable net pricing. These impacts were partially offset by productivity savings, the organic volume growth, lower advertising and marketing costs and a 5-percentage-point impact of lower commodity costs.
Fiscal 2026 Guidance and Outlook
The Company provides guidance on a non-GAAP basis as we cannot predict certain elements which are included in reported GAAP results, including the impact of foreign exchange translation and commodity mark-to-market net impacts.
For 2026, the Company continues to expect:
- Organic revenue to increase between 2 and 4 percent;
- Core constant currency EPS to increase between 4 and 6 percent;
- A core annual effective tax rate of approximately 22 percent;
- Capital spending to be below 5 percent of net revenue; and
- A free cash flow conversion ratio of at least 80 percent.
In addition, the Company expects:
- Total cash returns to shareholders of approximately $8.9 billion, comprised of dividends of $7.9 billion and share repurchases of $1.0 billion.
The Company also continues to expect a foreign exchange translation tailwind of approximately 1 percentage point to benefit reported net revenue and core EPS growth, based on current foreign exchange rates. In addition, acquisitions net of divestitures that occurred in 2025 are expected to contribute 1 percentage point to reported net revenue growth in 2026.
The assumptions and the guidance above imply net revenue growth within a range of 4 to 6 percent and core EPS growth of approximately 5 to 7 percent in fiscal 2026, or approximately 7 to 9 percent excluding the impact of global minimum tax regulations.
Dividend Increase and New Share Repurchase Program
The Company today 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. This represents the Company’s 54th consecutive annual dividend per share increase. The Company also announced a new share repurchase program providing for the repurchase of up to $10 billion of PepsiCo common stock through February 28, 2030.
Prepared Management Remarks and Live Question and Answer Webcast
At approximately 6:30 a.m. (Eastern time) on February 3, 2026, the Company will post prepared management remarks (in pdf format) regarding its fourth quarter and full-year 2025 results, including its outlook for 2026, at https://www.pepsico.com/investors. At 8:15 a.m. (Eastern time) on February 3, 2026, the Company will host a live question and answer session with investors and financial analysts. Further details will be accessible on the Company’s website at https://www.pepsico.com/investors.