PURCHASE, N.Y., July 9, 2026, 09:06 (EDT)
- PepsiCo’s second-quarter revenue rose 6.4% to $24.18 billion, topping LSEG estimates, while core earnings per share rose to $2.20.
- North American demand stayed soft: snack volumes were flat and beverage volumes fell 4%, even after U.S. snack price cuts.
- PepsiCo shares were lower before the regular New York trading session, which starts at 9:30 a.m. ET.
PepsiCo beat quarterly revenue expectations on Thursday, helped by international growth and newer zero-sugar, hydration and protein products, but weak North American demand kept pressure on the stock before the New York open.
That matters now because PepsiCo is an early read on the U.S. consumer as earnings season starts. The company has been cutting prices on major snack brands to win back shoppers, a test of whether big food makers can protect volume after several years of price increases.
Net revenue rose to $24.18 billion from $22.73 billion a year earlier. Organic revenue — sales growth stripped of some currency and deal effects — rose 2.4%, while core earnings per share, PepsiCo’s adjusted profit measure, rose 4% to $2.20.
“Our second quarter results featured strong organic volume and net revenue growth,” Chief Executive Ramon Laguarta said. He also said PepsiCo was leaning on portion-control packs, hydration, protein, fiber, energy and zero-sugar products as consumer tastes shift. PepsiCo
The problem was at home. PepsiCo Foods North America revenue fell 2%, mainly because of lower effective pricing, while PepsiCo Beverages North America revenue rose 7% but included a boost from 2025 acquisitions. Beverage organic volume fell 4%.
PepsiCo had cut U.S. prices on Lay’s, Doritos, Cheetos and Tostitos by as much as 15% earlier this year. In the second quarter, North American snack volumes were flat, and beverage volumes fell as higher gas prices and inflation worries hit household budgets.
International markets carried more of the load. PepsiCo said international organic revenue rose 7% in the quarter, its 21st straight quarter of at least mid-single-digit growth, with international beverage franchise volume up 5% and international convenient-foods volume up 4%.
The company kept its 2026 outlook unchanged. It still expects organic revenue to rise 2% to 4% and core constant-currency earnings per share — profit growth excluding currency swings — to increase 4% to 6%. PepsiCo also maintained plans for about $8.9 billion in shareholder returns this year.
The read-through is not just for PepsiCo. Coca-Cola faces the same pressure to keep soda brands relevant as shoppers move toward lower-sugar drinks, while Mondelez International is watched for how snack demand holds up when households look for cheaper packs and better value.
“Pepsi’s challenge isn’t building iconic brands, it’s keeping them relevant,” eMarketer analyst Suzy Davidkhanian said, adding that consumers are still spending but are more selective about where their money goes. Reuters
The risk is that price cuts hurt revenue faster than they revive volume. PepsiCo also said North America improved more slowly than expected and warned of higher input costs in the second half, though it expects productivity savings and tariff refund claims to offset part of that pressure.
For now, PepsiCo is betting on affordability, simpler ingredients and functional products such as Gatorade Lower Sugar, Propel protein powders and zero-sugar sodas. The quarter showed that those bets are working better overseas than in the U.S., where shoppers still look cautious.
