PepsiCo Q4 net sales rise 5.6% as organic revenue accelerates despite volume pressure 

USA – PepsiCo has reported a 5.6% increase in net sales to US$29.34 billion for the fourth quarter ended December, driven by improving organic sales performance across its global business segments. 

The company said organic revenue, which excludes the impact of foreign exchange movements, acquisitions, and divestitures, rose 2.1% during the quarter, reflecting steady underlying demand in several markets. 

“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,” Chief Executive Officer Ramon Laguarta said in a statement. 

Despite the revenue growth, PepsiCo continues to face volume pressures, particularly in North America. Global food volumes declined 2% during the quarter, while global beverage volumes increased by 1%.  

The company noted that volume metrics exclude pricing and foreign exchange impacts to better reflect consumer demand trends. 

In December, PepsiCo announced plans to cut prices and reduce nearly 20% of its product portfolio following an agreement with activist investor Elliott Investment Management.  

Elliott, which acquired a US$4 billion stake in PepsiCo in September, has urged the company to address slowing growth and profitability challenges in its North American food and beverage operations. 

As part of the strategy, PepsiCo said it would cut prices on core snack brands such as Lay’s and Doritos by as much as 15% after consumer backlash against earlier price increases. 

“We’ve spent the past year listening closely to consumers, and they’ve told us they’re feeling the strain,” said Rachel Ferdinando, chief executive officer of PepsiCo Foods U.S. She added that the new pricing would begin appearing on store shelves this week. 

Alongside price adjustments, the company plans to accelerate the launch of products with simpler and more functional ingredient profiles. These include Gatorade Lower Sugar and Simply NKD Cheetos and Doritos, which contain no artificial flavors or colors. 

PepsiCo also highlighted the strong early performance of Pepsi Prebiotic, which the company said sold out within 30 hours of its Black Friday launch. The product is expected to roll out across the United States in the coming months. 

Following the earnings release, PepsiCo reaffirmed its 2026 outlook, projecting organic revenue growth of between 2% and 4%, and an increase in core constant-currency earnings per share in the range of 4% to 6%. 

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