PepsiCo Inc (NASDAQ:PEP, XETRA:PEP) said it will implement price cuts of up to 15% on popular snack brands including Lay’s, Doritos, and Flamin’ Hot Cheetos, following consumer complaints over rising costs.
The company’s move comes as it reported fourth-quarter earnings that exceeded Wall Street expectations, driven by stronger beverage sales around the globe.
PepsiCo posted revenue of $29.3 billion for the fourth quarter, up 5.6% from a year earlier and above analysts’ estimate of $28.9 billion. Core earnings per share came in at $2.26, surpassing the $2.23 estimate, while organic revenue grew 2.1%.
The company also announced plans for share buybacks of up to $10 billion through 2030.
Regional performance showed PepsiCo Beverages North America bringing in $8.2 billion, while Asia Pacific revenue rose to $1.49 billion, beating estimates of $1.45 billion. Latin America and EMEA both reported 5% organic growth, while Foods North America saw a 1% decline in organic revenue.
Looking ahead, PepsiCo expects full-year 2026 organic revenue growth of 2% to 4% and core constant currency EPS growth of 4% to 6%, with a free cash flow conversion ratio of at least 80%.
Analysts at Jefferies said the modest EPS beat was driven by foreign exchange, which contributed about 2 percentage points to the top line, and inorganic performance, adding roughly 1 point. Volumes fell 2% in the quarter but improved sequentially, particularly in PepsiCo Foods North America.
“To us, the quarter signals that trends may be headed in a better direction,” Jefferies wrote. The firm noted that the 2026 guidance relies on multiple drivers, including innovation, price cuts, and productivity gains, and is back-half weighted. Early 2026 trends will be closely watched as lower prices and new product launches hit the market.
Shares of PepsiCo were up 5.1% in Tuesday morning trading following the earnings release and news of the planned snack price reductions.