Pepsi Q1 Earnings Beat Expectations, Salty Snacks Recover on Price Cuts; Announces 54th Consecutive Dividend Increase

Gate News message, April 17 — PepsiCo reported first-quarter revenue of $19.44 billion, up 8.5% year-over-year and exceeding market expectations. Organic sales growth reached 2.6%, surpassing the consensus estimate of 2.4%. Core earnings per share came in at $1.61, also beating expectations.

The strong results were driven by price reductions on salty snacks, including brands like Lay's and Doritos, which had previously underperformed due to price increases. The Frito-Lay division's organic sales rebounded in the quarter as the pricing strategy took effect. PepsiCo also launched new high-fiber and high-protein product lines to address consumer demand for healthier options.

By region, North American food revenue grew 2% while beverage revenue increased 9%. International markets showed stronger momentum: Europe, Africa, and Middle East revenue climbed 18%, Latin American food revenue rose 16%, and Asia-Pacific food revenue advanced 11%. The company also announced a comprehensive overhaul of its Gatorade brand, introducing lower-sugar formulations, removing artificial colors, and launching Gatorlyte Longer Lasting with enhanced electrolyte content for sports and outdoor use.

PepsiCo maintained its full-year guidance of 2% to 4% organic revenue growth and 4% to 6% core constant-currency EPS growth. The company plans to return $8.9 billion to shareholders, comprising $7.9 billion in dividends and $1 billion in share buybacks. Beginning June 2026, PepsiCo will increase its annual dividend by 4%, marking the 54th consecutive year of dividend growth. CFO Steve Schmitt noted that the company's hedging program is expected to provide near-term protection amid an increasingly volatile macroeconomic environment.