PepsiCo lifts dividend and launches $10 bn buyback as shares rally

PepsiCo announced an increase in its quarterly dividend to $1.48 per share and approved a new $10 billion share‑repurchase program that will run through 2030. The moves respond to pressure from activist investor Elliott Investment Management, which has called for a sharper focus on core brands, and are accompanied by announced price cuts on snack products such as Lay’s and Doritos.

Following the news, PepsiCo stock rose about 2.7% to $143.61, rebounding from 52‑week lows amid a broader rally in traditional consumer and industrial stocks. The rally comes after the company reported second‑quarter 2026 results that missed Wall Street earnings per‑share expectations ($2.20 vs $2.21 forecast) despite revenue of $24.18 billion beating estimates. Domestic sales were soft, while international segments posted growth of 10% in Europe, Middle East and Africa and 12% in Asia‑Pacific. CEO Ramon Laguarta highlighted continued global sales momentum.