PepsiCo’s fourth quarter results received a strong market response, with revenue growth surpassing Wall Street expectations and non-GAAP earnings per share also slightly above consensus. Management attributed the performance to targeted affordability initiatives, productivity improvements, and double-digit shelf space gains, particularly in Frito-Lay. CEO Ramon Laguarta emphasized the company’s “multi-vector strategy” to drive category growth, focusing on both affordability for low- and middle-income consumers and reinvestment in product innovation. Management also credited operational discipline and the restaging of legacy brands for supporting profitability and competitive positioning during the quarter.

Is now the time to buy PEP? Find out in our full research report (it’s free for active Edge members).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From PepsiCo’s Q4 Earnings Call

• Bonnie Herzog (Goldman Sachs) asked about the impact of affordability initiatives on PFNA margins and how PepsiCo would balance volume growth with profitability. CFO Steve Schmitt emphasized that productivity improvements would help fund these initiatives and maintain margin discipline.
• Andrea Teixeira (JPMorgan) pressed for details on the scale and timing of pricing reinvestment and the expected volume trajectory. CEO Ramon Laguarta highlighted a “surgical” approach to pricing and forecasted volume and revenue growth earlier in the year, with brand restaging supporting momentum.
• Lauren Lieberman (Barclays) inquired about the decline in advertising spend in 2025 and whether this trend would reverse. Schmitt confirmed advertising would increase in 2026 to support innovation and value messaging.
• Kevin Grundy (BNP Paribas) questioned the company’s strategy to address consumer adoption of GLP-1 weight-loss drugs. Laguarta detailed PepsiCo’s increased focus on portion control, hydration, and fiber innovation as ways to mitigate potential headwinds.
• Robert Moskow (TD Cowen) asked for an update on integrated distribution pilots in Texas and Florida. Laguarta discussed early improvements in efficiency and flexibility, with further details expected as pilots expand and technology systems are enhanced.

Catalysts in Upcoming Quarters

In the coming quarters, our analysts will be monitoring (1) the pace and effectiveness of affordability initiatives in driving volume recovery, (2) the impact of major brand relaunches like Gatorade and Quaker on category share, and (3) the operational benefits realized from integrated food and beverage distribution pilots. Additional progress in product innovation and continued productivity gains will also serve as key indicators of strategic execution.

PepsiCo currently trades at $166.41, up from $155.20 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).

High-Quality Stocks for All Market Conditions

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. Check out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.