The news came as a surprise to many, with Perez's poor form - including a Q1 exit in Monaco - starting to become detrimental to the team's title chances.
However, the decision does give Red Bull some stability in a year where they have been desperately unsteady off the track, with the controversy surrounding team principal Christian Horner and exit of Adrian Newey.
Verstappen happy with Red Bull's decision
There have also been doubts cast on Max Verstappen's future, with theories of the three-time world champion taking a sabbatical touted by pundits and drivers alike.
However, the Dutch ace's reaction to his teammate of three years' new contract appears to put that talk to bed.
“It’s great news that Checo has signed with the team until 2026 and I am glad to be able to continue with the successful partnership that we have created over the past few years,” Verstappen said.
“We achieved a record-breaking season last year and the team is very strong, so we are looking forward to building on this success into the next two years as well.”
Red Bull's 2023 car, the RB19, did indeed set many records, winning all but one race, an unmatched winning percentage for any season (achieved in the longest calendar to date).
Despite driving one of the most dominant cars in the sport's history, Perez was only able to pick up two wins and nine podiums.
Perhaps that level of performance benefits Red Bull. It does not pose much of a challenge to Verstappen, but as the pack closes, Perez's form could expose issues within the Red Bull pipeline.