PepsiCo Tops Q4 EPS Estimates, Stock Falls on Missed Revenue and Demand
PepsiCo reported mixed quarterly results as earnings per share exceeded Wall Street’s expectations, but revenues fell just short. U.S. demand for its iconic snacks and beverages dropped for a fifth consecutive quarter—an indicator that budget-conscious consumers are tightening their spending habits. Still, net income rose to $1.52 billion, or $1.11 per share, boosted by year-over-year growth in Pepsi’s international markets.
The North American slowdown was especially apparent in Frito-Lay’s 3% volume decline and a similar downturn in Pepsi’s beverage lineup, which lost 3% in volume. Coca-Cola alternatives like Gatorade found pockets of success, but they weren’t enough to offset widespread consumer caution at grocery stores and convenience outlets. Meanwhile, management remains optimistic that North American performance will rebound through marketing pushes and streamlined operations.
For 2025, Pepsi expects low-single-digit revenue growth and a mid-single-digit rise in core constant currency EPS. CEO Ramon Laguarta points to increased investment in international markets and strategic moves to stabilize U.S. demand as top priorities. Whether those efforts reverse the domestic volume slump—and reignite snack and drink purchases—will be crucial in sustaining Pepsi’s momentum.
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