PepsiCo Q2 2026 earnings: revenue beat, EPS miss, U.S. slump

On an adjusted basis, the institution earned $2.20 per share, 1 cent beneath the $2.21 statement estimation tracked by CNBC. Total nett gross of $24.18 cardinal represented a 6.4% year-over-year summation and cleared the $23.95 cardinal Wall Street target. Stripping retired currency movements, acquisitions and divestitures, integrated gross climbed 2.4%.

Geographically, the representation was split. Overseas divisions — including Asia Pacific Foods, International Beverages Franchise, and Europe, Middle East and Africa — each recorded integrated measurement gains, making planetary operations the company's main root of momentum. At home, the beverages portion suffered a 4% measurement driblet and the convenient foods conception ended the 4th flat.

"Our North America concern was softer than we anticipated successful the 2nd quarter, and we present expect a much gradual betterment successful show trends for the equilibrium of this year," Chief Financial Officer Steve Schmitt said successful prepared remarks.

Chairman and CEO Ramon Laguarta pointed to tighter user budgets arsenic a headwind. "Results were tempered successful the 4th arsenic U.S. nutrient and beverage class show moderated with user budgets tightening owed to rising inflationary pressures," helium said successful prepared remarks.

Core operating nett roseate 4% to $4.07 billion, portion halfway operating borderline narrowed by 40 ground points to 16.8%, reflecting outgo pressures that partially offset productivity gains and pricing actions.

The institution has been moving to reverse persistent measurement declines successful North America. Price reductions of up to 15% connected Lay's, Tostitos, Doritos and Cheetos were rolled retired successful February successful an effort to triumph backmost shoppers, and the institution has undertaken branding overhauls connected flagship products specified arsenic Gatorade and Lay's. Activist capitalist Elliott Investment Management has pushed the institution to trim prices connected selected products and grow much affordable battalion sizes, according to Barron's.

Management near its yearly targets intact. The institution inactive expects integrated gross to grow by 2% to 4% and halfway constant-currency EPS to emergence by 4% to 6%. Factoring successful a overseas speech payment of astir 1 percent point, those figures construe to reported nett gross maturation of 4% to 6% and halfway EPS maturation successful the vicinity of 5% to 7%.

PepsiCo banal was down astir 0.7% up of Thursday's marketplace open.