PepsiCo Boosts Shareholder Returns And Snack Affordability Amid Revenue Gains

The retail giant raised its annual dividend to $5.92 and unveiled a new stock buyback plan to purchase up to $10 billion of PepsiCo shares.

• In Q4, PepsiCo’s net revenue rose 5.6% year-on-year (YoY) to $29.3 billion, while adjusted earnings per share (EPS) climbed 11% YoY to $2.26.
• Looking ahead, PepsiCo expects organic revenue growth between 2% and 4% and core constant currency EPS growth of 4% to 6% in 2026.
• Iconic products such as Lay’s, Doritos, Cheetos, and Tostitos will see retail price cuts of up to nearly 15%.

PepsiCo Inc. (PEP) reported its fourth-quarter (Q4) results, highlighting steady revenue growth and strong earnings momentum. The company also announced a 4% increase to its annual dividend and approved a $10 billion share buyback program. 

In Q4, PepsiCo’s net revenue rose 5.6% year-on-year (YoY) to $29.3 billion, while adjusted earnings per share (EPS) climbed 11% YoY to $2.26. Both revenue and EPS exceeded the analysts’ consensus estimate of $28.96 billion and $2.24 respectively, according to Fiscal AI data. 

PepsiCo Extends Dividend Streak, Unveils $10B Buyback

The food and beverage giant raised its annual dividend to $5.92 per share from $5.69, marking the 54th consecutive year of dividend growth. Additionally, the company unveiled a new stock buyback plan to purchase up to $10 billion of PepsiCo shares by Feb. 28, 2030.

Looking ahead, PepsiCo expects organic revenue growth between 2% and 4% and core constant currency EPS growth of 4% to 6% in 2026. Free cash flow conversion ratio is projected at a minimum of 80%, with total shareholder returns of $8.9 billion, including $7.9 billion in dividends and $1 billion in share buybacks.

“Accelerated net revenue growth and strong productivity savings led to strong operating margin expansion and double-digit EPS growth in the fourth quarter.” 

-Ramon Laguarta, Chairman and CEO, PepsiCo

PepsiCo Is Making Snacks Cheaper

PepsiCo said it is rolling out lower prices on some of its most popular snack brands in the U.S., aiming to ease the pinch of rising household costs. Iconic products such as Lay’s, Doritos, Cheetos, and Tostitos will see retail price cuts of up to nearly 15%, as the company looks to make snacking more affordable.

The price adjustment arrives as households prepare for key snacking moments, including winter gatherings and the upcoming Big Game. The timing reflects the company's strategy to offer value alongside its beloved flavors.

What Is The Retail Mood On Stocktwits?

PepsiCo stock inched 0.6% lower in Tuesday’s premarket. On Stocktwits, retail sentiment around the stock changed to ‘extremely bullish’ from ‘bullish’ territory the previous day. Message volume shifted to ‘high’ from ‘normal’ level in 24 hours. 

PEP stock has gained over 3% in the last 12 months. 

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