PepsiCo (PEP) Q2 2026 earnings

PepsiCo on thursday reported Mixed quarterly results as challenges in the North American food and beverage divisions offset strong international demand.

“Results slowed in the quarter as U.S. food and beverage category performance slowed as consumer budgets tightened due to rising inflation pressures,” CEO Ramon Laguarta said in prepared remarks shared Thursday on the company’s website.

In Pepsi’s second quarter, global oil prices fluctuated dramatically due to the US war with Iran. The national average price of gasoline in the U.S. reached a four-year high of $4.56 in late May, leading many shoppers to watch their spending.

Here’s what the company reported compared to Wall Street expectations for the quarter ending June 13, according to a survey of LSEG analysts.

• Earnings per share: $2.20, expected $2.21
• Revenue: $24.18 billion, expected $23.95 billion

Pepsi reported that net income attributable to the company in the second quarter was $2.98 billion, or $2.18 per share, compared to $1.26 billion, or 92 cents per share, a year earlier.

Excluding restructuring and impairment charges and other items, the company earned $2.20 per share.

net sales It increased by 6.4% to $24.18 billion. Organic revenue, which excludes acquisitions, divestitures and foreign currency, increased 2.4% in the quarter.

Globally, Pepsi’s food volume increased 3%, while beverage volume increased 2%. The metric excludes pricing and currency fluctuations to more accurately reflect demand.

However, Pepsi’s sales volume growth came from international markets. Domestic demand was much weaker. The North American food business reported flat volume for the quarter, and the North American beverage division saw a 4% volume decline.

Over the last two years, demand has weakened in both segments as a result of higher prices. In February, Pepsi slashed prices on Lay’s, Tostitos, Doritos and Cheetos by up to 15% in an effort to win back shoppers. The company is also “restaging” some of its iconic brands, such as Gatorade and Lay’s, with new branding to increase sales.

Pepsi expects North American sales to recover, but that will take time, especially after this quarter’s decline.

“Our North American business was softer than we expected in the second quarter, and we now expect a more gradual improvement in performance trends for the balance of this year,” CFO Steve Schmitt said in his prepared remarks. he said.

For the full year, Pepsi reiterated its previous forecast that organic revenue would grow between 2% and 4% and underlying constant currency earnings per share would rise between 4% and 6%.