Overview
- PepsiCo reported Q2 revenue of $24.18 billion and adjusted EPS of $2.20, beating revenue forecasts while missing the $2.21 EPS consensus by one cent.
- Global food volumes rose 3% and beverage volumes rose 2%, with most growth driven by international markets rather than the United States.
- North America was the weak spot as food volume was flat and beverage volume fell 4%, prompting management to say it now expects a more gradual U.S. recovery.
- Core operating profit increased about 4% to roughly $4.07 billion while core operating margin narrowed by about 40 basis points to 16.8%, reflecting cost pressures that offset productivity gains.
- PepsiCo reaffirmed full-year guidance for 2%–4% organic revenue growth and 4%–6% core constant-currency EPS growth and pointed to price cuts, smaller pack sizes and brand refreshes as steps to win back budget‑constrained U.S. shoppers.