PepsiCo Q4 core EPS beats expectations, revenue up 5.6%

Overview

• Beverage and snack giant's Q4 core EPS beat analyst expectations

• Q4 net revenue rose 5.6%, driven by strong operating margin expansion

• Company announced a 4% annual dividend increase, 54th consecutive yearly rise

Outlook

• PepsiCo affirms fiscal 2026 financial guidance provided in December

• Company expects improved North America performance and resilient international business in 2026

• PepsiCo announces 4% increase in annual dividend per share starting June 2026

Result Drivers

• REVENUE GROWTH - Q4 revenue growth driven by improvements in North America and international markets, supported by productivity savings and effective net pricing

• SEGMENT PERFORMANCE - Significant growth in operating profit for International Beverages Franchise and EMEA segments

• STRATEGIC INITIATIVES - Co aims to accelerate growth in 2026 by restaging global brands and introducing product innovations

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 10 "strong buy" or "buy", 14 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the non-alcoholic beverages peer group is "buy."

• Wall Street's median 12-month price target for PepsiCo Inc is $164.00, about 5.7% above its February 2 closing price of $155.20

• The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 17 three months ago

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