PepsiCo Beats Earnings Estimates but Misses on Revenue in Q4 2024

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PepsiCo Inc. reported its fourth-quarter earnings for 2024 on February 4, 2025, delivering mixed results that highlighted both strengths and challenges for the global food and beverage giant.

Earnings Overview

The company posted adjusted earnings per share (EPS) of $1.96, narrowly surpassing analysts’ expectations of $1.94.

This represents a 10.1% increase compared to the same quarter last year, showcasing PepsiCo’s ability to maintain profitability despite a challenging economic environment. Net income rose to $1.52 billion, or $1.11 per share, compared to $1.3 billion in the prior year.

Revenue Performance

While earnings beat estimates, revenue fell short of expectations. PepsiCo reported total revenue of $27.78 billion, slightly below analysts’ projections of $27.91 billion and flat compared to the previous year.

This marks the third consecutive quarter of revenue misses, driven by declining sales volumes in North America, particularly in its snack and beverage categories, which saw a 1% drop in demand.

Market Reaction

Following the earnings announcement, PepsiCo’s stock dipped approximately 2.59% in premarket trading, as investors reacted to the revenue miss and slowing demand trends.

The stock has been under pressure over the past year, having declined more than 12% before this report was released.

Future Outlook

Looking ahead, PepsiCo has projected low single-digit growth in organic revenue and mid-single-digit growth in adjusted EPS for 2025.

The company also announced a 5% increase in its annualized dividend per share, marking its 53rd consecutive annual dividend hike, signaling confidence in its long-term financial health.

PepsiCo Chairman and CEO Ramon Laguarta expressed optimism about the company’s resilience despite subdued category performance and ongoing geopolitical challenges impacting certain markets.

He emphasized that productivity initiatives would continue to drive efficiency and support future investments in growth.

While PepsiCo’s earnings exceeded expectations, concerns remain about its ability to reignite revenue growth amid shifting consumer preferences and economic headwinds in key markets like North America.

Investors will be watching closely as the company implements its strategies for 2025 and beyond.

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