New York, February 4, 2026, 19:55 (EST) — After-hours trading
- PepsiCo shares climbed roughly 2%, closing at $166.18 in late trading Wednesday
- Price reductions approaching 15% on major snack brands sharpened the spotlight on U.S. volume and margin performance
- Quarterly dividend to be paid March 31; record date is March 6
PepsiCo (PEP.O) shares climbed roughly 2%, closing near $166.18 in late Wednesday trading. The stock swung between $161.81 and $167.94, with around 13.3 million shares traded.
PepsiCo is cutting suggested retail prices on Lay’s, Doritos, Cheetos, and other key snack brands by up to nearly 15%. The new pricing is rolling out across the U.S. starting this week. “We’ve spent the past year listening closely to consumers, and they’ve told us they’re feeling the strain,” said PepsiCo Foods U.S. CEO Rachel Ferdinando. PepsiCo
This matters now as shoppers resist rising grocery costs by opting for more affordable, store-brand products. PepsiCo also flagged the growing use of appetite-suppressing GLP-1 drugs as another factor weighing on snack sales.
PepsiCo beat fourth-quarter revenue forecasts on Tuesday and announced plans to lower prices on key snacks after earlier hikes met resistance from consumers. CEO Ramon Laguarta told analysts the company is “betting a lot on portion control” amid the rise of appetite-suppressing weight-loss drugs. Revenue climbed to $29.34 billion, surpassing the $28.97 billion analysts expected, while core earnings per share came in at $2.26, just above the $2.24 estimate, according to LSEG data. David Wagner of Aptus Capital Advisors described the quarter as “pretty strong,” but stressed that success hinges on “innovation, price cuts, productivity.” Reuters
PepsiCo reported a 5.6% rise in net revenue for the fourth quarter. Organic revenue, which strips out currency fluctuations and acquisitions, was up 2.1%. CEO Laguarta pointed to productivity savings as a key factor behind the boost in operating margins. The company stuck to its 2026 targets: 2%-4% organic revenue growth and 4%-6% growth in core constant-currency EPS, a non-GAAP metric adjusting for certain items and currency effects. PepsiCo also announced a 4% hike in its annualized dividend, raising it to $5.92 per share starting with the June 2026 payout. Alongside, it unveiled a new $10 billion share buyback plan set to run through February 28, 2030.
PepsiCo jumped 4.9% Tuesday following its price-cut announcement and earnings report. The momentum carried into Wednesday, keeping the stock under the spotlight as traders watched to see if the cheaper prices would boost sales volume.
Rivals face the same dilemma balancing price against volume. Mondelez, the maker of Cadbury and Oreo, cautioned Tuesday that growth in 2026 would be subdued as higher prices deter some customers.
PepsiCo’s upcoming focus is on North America snack volumes and the margin hit it takes to drive them. Investors are eager to see if its cost and productivity efforts can sustain both promotions and innovation, especially with activist Elliott Investment Management pushing for stronger results.
Cheaper chips aren’t without risk. If retailers pass on the discounts but foot traffic doesn’t pick up, profits might suffer — and this week’s relief rally could quickly lose steam.
PepsiCo’s board announced a quarterly dividend of $1.4225 per share on Wednesday, set to be paid March 31 to shareholders of record on March 6. The company also revealed a higher annualized dividend rate, which is slated to start with the June 2026 payment.
