Source: Sharecast
Net revenue rose 6.4% year-on-year to $24.18bn over the three months to 13 June, beating the market forecast of $23.96bn, with both the convenient foods and beverages businesses posting growth.
Organic revenue was up 2.4% over the second quarter and 2.5% year-to-date, marking the highest YTD increase since 2022, according to chair and chief executive Ramon Laguarta.
This, he said, was helped by "the strength of the international business and the continued evolution of the portfolio to offer more choices through portion control varieties, diverse ingredients, functional benefits such as hydration, protein and fiber, energy and zero sugar beverage varieties".
Operating profit jumped 125% to $4.02bn in the second quarter, aided by the absence of last year’s impairment charges, while earnings per share rose 137% to $2.18. Core EPS increased 4% to $2.20, coming in one penny ahead of the consensus estimate.
However, PepsiCo Foods North America remained the weak spot, with second-quarter revenue down 2% to $6.37bn, reflecting lower effective net pricing. The company said the division gained volume market share due to innovation and affordability initiatives, but overall North American convenient foods sales declined.
PepsiCo kept its 2026 guidance unchanged, expecting organic revenue growth of 2% to 4% and core constant-currency EPS growth of 4% to 6%, but warned that commodity prices and foreign exchange were subject to change.
"We are unable to predict the 2026 impact of foreign exchange or the mark-to-market net impact on commodity derivatives due to the unpredictability of future changes in foreign exchange rates and commodity prices," the company said.
PepsiCo shares were down 5.0% at $134.44 by 1515 BST.