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PEPSICO INC 8-K Report, Financial Results (Feb 3, 2026)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed February 3, 2026
Period End
February 3, 2026
Security
PEP
In the record · 2016–202610-K1110-Q338-K145

PEP filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 145 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Jun ’16Jun ’16
  2. Impairment8-K · Feb ’19Feb ’19
  3. Leadership change8-K · Aug ’21Aug ’21
  4. Leadership change8-K · Feb ’25Feb ’25

01—Abstract

Summary

Summary of the 8-K filed February 3, 2026. Cited figures are marked; the original filing is the authoritative source.

PepsiCo reported fourth-quarter and full-year 2025 results on February 3, 2026, showing a sharp reported rebound in Q4 but a weak full year.

Q4 GAAP net revenue rose 5.6% to $29.3 billiona, with organic revenue growth of 2.1%, a sequential acceleration. Q4 GAAP EPS was $1.85, up 68%, and core constant-currency EPS rose 11% to $2.26 on a core basis. Full-year GAAP net revenue grew 2.3% to $93.9 billion, but GAAP EPS fell 14% to $6.00 because of roughly $2.0 billion of impairment charges, primarily related to the Rockstar brand and the TBG investment.

Core full-year EPS was $8.14b, essentially flat, and core constant-currency operating profit growth was about 2%. Management affirmed its 2026 guidance: organic revenue growth of 2 to 4%, core constant-currency EPS growth of 4 to 6%, a core tax rate of about 22%, capex below 5% of net revenue, and free cash flow conversion of at least 80%. Implied reported net revenue growth is 4 to 6%, and implied core EPS growth is about 5 to 7%.

Management expects North America to improve and International to remain resilient, and it plans a record year of productivity savings to fund growth investments. It also raised the annualized dividend 4% to $5.92c per share, the 54th consecutive annual increase, and authorized a new $10 billion buyback through February 2030. For investors, the key takeaways are the Q4 momentum and the reaffirmed 2026 outlook, offset by heavy full-year impairments, rising commodity and tariff costs, and a balance sheet with rising debt.

Total cash returns of about $8.9 billiond in 2026 (dividends of $7.9 billion plus $1.0 billion in buybacks) are covered by operating cash flow, though free cash flow in 2025 was pressured by higher acquisition spending and lower capex. Watching whether North America volume recovers will be the key test for the 2026 plan.

02—Key points

Key Highlights

  1. Q4 2025 GAAP net revenue rose 5.6% to $29.3B, with organic revenue up 2.1%, a sequential acceleration in growth.
  2. Q4 GAAP EPS was $1.85 (up 68%); core constant-currency EPS rose 11% to $2.26, with operating margin expanding to 12.1% GAAP and 13.9% core.
  3. Full-year GAAP EPS fell 14% to $6.00 due to roughly $2.0B of impairment charges, mainly the Rockstar brand; core EPS was $8.14, roughly flat versus 2024's $8.16.
  4. 2026 guidance affirmed: organic revenue +2-4%, core constant-currency EPS +4-6%, core tax rate ~22%, free cash flow conversion of at least 80%.
  5. Annualized dividend raised 4% to $5.92 per share (from $5.69), the 54th consecutive annual increase, payable from June 2026.
  6. New share repurchase program of up to $10B through February 28, 2030, alongside planned 2026 cash returns of ~$8.9B.
  7. Full-year 2025 cash flow from operations fell to $12.1B from $12.5B, and debt rose to about $49B (long-term plus short-term), a watch item for leverage.

03—Questions

Frequently Asked Questions

  1. Why did GAAP EPS fall 14% for the full year while Q4 GAAP EPS rose 68%?

    Full-year 2025 GAAP results included about $2.0 billion of impairment charges, primarily related to the Rockstar brand, along with restructuring and acquisition-related costs. Q4 2024 included large prior-year impairments tied to the TBG investment and Juice Transaction receivables, so the Q4 comparison was easy. Core EPS, which excludes these items, was $8.14 for the full year, roughly flat.

  2. Is PepsiCo's 2026 guidance changed?

    No. Management reaffirmed the December 2025 guidance: organic revenue growth of 2-4%, core constant-currency EPS growth of 4-6%, a core tax rate of about 22%, capex below 5% of net revenue, and free cash flow conversion of at least 80%. Including an expected FX tailwind of about 1 point and 1 point from 2025 acquisitions net of divestitures, implied reported net revenue growth is 4-6%.

  3. Is the dividend safe, and how much is being returned to shareholders?

    The dividend increase of 4% to $5.92 per share annualized is the 54th consecutive annual increase. In 2026, management expects about $7.9B in dividends and $1.0B in share repurchases, for total cash returns of about $8.9B. The company also authorized up to $10B in buybacks through February 2030. Operating cash flow of $12.1B in 2025 covered dividends of $7.6B paid, though free cash flow after capex is thinner, so coverage deserves monitoring.

  4. What are the main risks behind the North America business?

    PFNA organic volume declined in 2025, and PBNA operating profit fell 53% for the full year, driven by Rockstar impairments and tariff-driven commodity costs (about 6 points for the full year). Management expects North America performance to improve in 2026 through brand restaging, innovation, value offerings and productivity savings, but results depend on delivering volume recovery against affordability pressures and tariffs.

04—Continue

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