PepsiCo reported sequential acceleration in revenue growth for Q4 FY2025, driven by improvements in both North America and International businesses. Strong productivity savings contributed to operating margin expansion and double-digit EPS growth, leading the company to affirm its 2026 financial outlook.
Reported net revenue increased 5.6% in Q4 FY2025, accelerating from prior periods.
positiveCore EPS grew 11% in Q4 FY2025, demonstrating strong earnings performance.
positiveOperating profit increased 58% in Q4 FY2025, driven by productivity savings and favorable prior-year impacts.
positiveAnnualized dividend per share increased by 4%, marking the 54th consecutive annual increase.
positiveFull-year reported net revenue growth was only 2.3%, a deceleration from Q4's 5.6% growth.
attentionFull-year reported EPS decreased 14% to $6.00 from $6.95 in the prior year.
negativeOperating profit for the full year decreased 11% to $11,498 million from $12,887 million.
negativePBNA operating profit decreased 53% for the full year, primarily due to impairment charges related to the Rockstar brand.
negativeEMEA segment experienced a 22-percentage-point impact of higher commodity costs.
attentionInventories increased by $539 million year-over-year, outpacing revenue growth.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
| Segment | Current | Prior Yr | YoY | % Total |
|---|---|---|---|---|
PepsiCo Foods North America (PFNA) | N/A | — | — | — |
PepsiCo Beverages North America (PBNA) | N/A | — | — | — |
International Beverages Franchise (IB Franchise) | N/A | — | — | — |
Europe, Middle East and Africa (EMEA) | N/A | — | — | — |
Latin America Foods (LatAm Foods) | N/A | — | — | — |
Asia Pacific Foods | N/A | — | — | — |
| Total Revenue | $0.00M | — | — | 100.0% |
Segment performance shows business unit health and growth drivers.
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.
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.
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.
Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.
Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.