PepsiCo reported second-quarter 2026 revenue of $24.18 billion, surpassing analyst estimates of $23.95 billion and marking a 6.4% year-over-year increase [1, 2, 3]. The company’s organic revenue growth reached 2.4% for the quarter [2].
Despite the overall revenue beat, PepsiCo faced pressure from weaker demand in its North America segment. North American foods volume declined about 2%, while beverage volume fell 4%, attributed to higher prices and inflationary pressures [2, 3]. To address budget-conscious consumers, PepsiCo cut prices on brands like Lay’s, Tostitos, Doritos, and Cheetos by up to 15% earlier this year in North America [2, 3].
CEO Ramon Laguarta said, “Results were tempered in the quarter as U.S. food and beverage category performance moderated with consumer budgets tightening due to rising inflationary pressures” [1, 2, 3]. PepsiCo’s net income rose to $2.98 billion, or $2.18 per share, compared to $1.26 billion, or 92 cents per share, a year earlier [2]. Adjusted earnings per share were $2.20, slightly below the $2.21 consensus estimate [2, 3].
Globally, PepsiCo saw growth with food volume up 3% and beverage volume rising 2%, driven largely by international markets [2]. However, CFO Steve Schmitt noted, “Our North America business was softer than we anticipated in the second quarter, and we now expect a more gradual improvement in performance trends for the balance of this year” [2].
For fiscal 2026, PepsiCo expects organic revenue growth of 2% to 4% and core constant currency earnings per share growth of 4% to 6% [1, 3]. PepsiCo’s Q2 ended June 13, with results reported on July 9 [2]. The results come after rising consumer costs, including a spike in U.S. national average gas prices to $4.56 per gallon in late May, added pressure on spending [2].
