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PepsiCo Beats Revenue Estimates as North American Demand Eases

Tighter U.S. household budgets are weighing on North American volumes, prompting price cuts.

Overview

  • PepsiCo reported roughly $24.18 billion in Q2 revenue, up about 6.4% and above analysts’ estimates, driven by stronger snack sales and some beverage resilience.
  • Net income more than doubled to $2.98 billion and adjusted earnings per share were $2.18, which narrowly missed the consensus forecast.
  • Volume trends diverged by region and product with North American snack volumes flat and North American beverage volumes down about 4% while overall snack volumes rose 3% and beverage volumes rose 2% globally.
  • The company earlier this year cut U.S. retail prices on major chip brands by up to 15% to defend volumes, a tactic the firm says helped but that leaves near‑term demand mixed.
  • PepsiCo kept its fiscal 2026 guidance unchanged, forecasting 2%–4% organic revenue growth and 4%–6% core constant‑currency EPS growth, reflecting management’s view that current headwinds are manageable.