TLDR
- PepsiCo beat revenue estimates with $24.18B vs $23.97B expected, up 6.4% year-over-year
- Adjusted EPS came in at $2.20, just $0.01 below the $2.21 analyst consensus
- Global food volume up 3% and beverage volume up 2%, but gains were driven by international markets
- North America was the weak spot — food volume flat, beverage volume down 4%
- Full-year guidance reiterated: organic revenue growth of 2%-4%, core EPS growth of 4%-6%
PepsiCo posted a mixed Q2 on Thursday, beating on revenue but barely missing on earnings. The stock edged up 1% following the announcement.
Revenue came in at $24.18 billion, topping the $23.97 billion Wall Street expected and up 6.4% from $22.73 billion a year ago. Adjusted EPS was $2.20, one cent short of the $2.21 consensus.
Organic revenue grew 2.4% in the quarter. That strips out acquisitions, divestitures, and foreign exchange swings to give a cleaner read on actual demand.
PEPSICO $PEP Q2’26 EARNINGS HIGHLIGHTS
🔹 Revenue: $24.181B (Est. $23.96B) 🟢; +6.4% YoY
🔹 Adj. EPS: $2.20 (Est. $2.19) 🟢; +4% YoY
🔹 Operating Profit: $4.02B (Est. $4.06B) 🔴
🔹 Foods North America: $6.37B (Est. $6.48B) 🔴
🔹 EMEA Revenue: $4.98B (Est. $4.89B) 🟢FY Guide:… pic.twitter.com/Ta8ddCS8Jj
— Wall St Engine (@wallstengine) July 9, 2026
Net income attributable to PepsiCo was $2.98 billion, or $2.18 per share. That compares to $1.26 billion, or 92 cents per share, in the same period a year ago.
Core operating profit rose 4% to $4.07 billion. However, core operating margin slipped 40 basis points to 16.8%.
CEO Ramon Laguarta said global organic volume has grown at its highest rate since 2022 so far this year. He credited the international business and portfolio evolution — including portion control options, functional beverages, and zero sugar varieties.
North America Drags on Results
The story at home was less encouraging. North America food volume was flat for the quarter. North America beverages fell 4%.
CFO Steve Schmitt acknowledged the miss, saying the North America business was “softer than we anticipated.” He said the company now expects a “more gradual improvement” in performance trends for the rest of the year.
Laguarta pointed to tightening consumer budgets as a pressure point. Gas prices hit a four-year high of $4.56 per gallon in late May amid swings in global oil markets tied to the U.S.-Iran conflict, leading shoppers to pull back on spending.
Pepsi had already been fighting weakness in its domestic snack business. In February, the company cut prices on Lay’s, Tostitos, Doritos, and Cheetos by up to 15% to win back consumers.
The company has also been refreshing branding on key products like Gatorade and Lay’s to reinvigorate sales. Progress has been slow.
International Picks Up the Slack
Outside the U.S., results were solid across the board. Asia Pacific Foods, International Beverages Franchise, and Europe, Middle East and Africa all reported organic volume gains.
The North America beverages segment got some help from acquisitions made in 2025, which contributed to overall revenue growth even as underlying demand stayed weak.
Analysts at Vital Knowledge described the report as “mostly an inline/boring report,” though they noted the details “skew net negative” given the margin contraction and North American softness in both food and beverages.
PepsiCo reaffirmed its full-year 2026 guidance: organic revenue growth of 2% to 4% and core constant currency EPS growth of 4% to 6%. Including foreign exchange benefits, the midpoint implies core EPS growth of 5% to 7%.
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