PepsiCo Beats Earnings Estimates as It Prepares to Cut Snack Prices

On Tuesday, PepsiCo reported quarterly earnings and revenue that topped expectations, with organic sales improving. 

Lower Snack Prices Coming

Snacks under PepsiCo, such as Doritos and Tostitos, have been down due to the prices. In response, Pepsi said it plans to lower prices on products such as its chip options. This will be done to “improve competitiveness and the purchase frequency of our brands." 

To help offset the loss of revenue, PepsiCo says productivity savings will offset the lower prices. 

Also on Tuesday, PepsiCo shares were nearly 5% higher.

The brands that'll see a price reduction include Lays, Tostitos, Doritos, and Cheetos.

PepsiCo is cutting prices after receiving a flood of emails and voicemail messages from shoppers complaining that high prices were making it hard to buy the company’s snacks. 🔗 https://t.co/n2h5D0FJcK pic.twitter.com/D2VWFvQ6Mp

— The Wall Street Journal (@WSJ) February 3, 2026

Reported vs. Expected Revenue and Earnings Figures 

Below are the figures of what PepsiCo reported versus what was expected. The expected figures come from a survey of LSEG analysts, per CNBC. 

• Earnings per share: $2.26 adjusted vs. $2.24 expected
• Revenue: $29.34 billion vs. $28.97 billion expected

Also, PepsiCo reported $2.54 billion in fourth-quarter net income ($1.85 per share), up from $1.52 billion ($1.11 per share) a year earlier. 

Net sales rose 5.6% to $29.34 billion. Furthermore, organic revenue, excluding foreign currency effects, divestitures, and acquisitions, increased 2.1%. 

“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,” CEO Ramon Laguarta said in a statement.

In North America, PepsiCo Beverages, which includes drinks like Gatorade and Starry, saw volume decline 4%, while sales rose 2%. 

As for the food division, volume fell by 1%.

With price decreases coming, PepsiCo expects double-digit increases in shelf space with top retailers. 

2026 Outlook and Recent Deal

In 2026, PepsiCo projected organic revenue growth of 2%-4%.

This past December, PepsiCo and Elliott Investment Management struck a deal for a $4 billion stake in the company, with the focus being on cutting some of the lineup of options, cutting costs, and lowering snack prices. Elliott doesn't have a seat on the PepsiCo board. 

Finally, Laguarta believes the North American arm of the business will improve while internationally they'll remain "resilient."