US PepsiCo earnings surpassed Wall Street expectations in the second quarter, even though domestic demand for its food and drinks weakened. The company reported higher revenue and adjusted earnings, which led to a 2% rise in its stock during premarket trading.
PepsiCo posted adjusted earnings per share of $2.12, beating analysts’ predictions of $2.03. Revenue reached $22.73 billion, exceeding the expected $22.27 billion. However, net income fell sharply to $1.26 billion, or 92 cents per share, compared to $3.08 billion, or $2.23 per share, a year earlier.
US PepsiCo earnings showed growth as organic revenue, which excludes acquisitions, divestitures, and foreign currency changes, rose 2.1% during the quarter. Net sales increased by 1%, signaling resilience despite softer consumer demand in North America.
Volume declined across PepsiCo’s key categories. Worldwide food volume dropped 1.5%, while beverage volume remained flat. In North America, food volume shrank by 1% in its Frito-Lay and Quaker Foods divisions. Beverage volume fell 2%, although Pepsi Zero Sugar recorded double-digit volume growth and its namesake soda saw gains.
To counter the decline, PepsiCo is focusing on innovation and consumer trends. The company is expanding multicultural offerings with brands like Siete Foods and Sabra, while also entering the protein product segment. CEO Ramon Laguarta noted improvements in domestic operations and stressed the importance of strategic product placement in stores.
US PepsiCo earnings also reflect the company’s efforts to cut costs and improve efficiency. PepsiCo closed two manufacturing plants in its North American food division during the quarter. It continues to streamline transportation and logistics while optimizing marketing investments for higher returns.
Executives also mentioned identifying overlaps between PepsiCo’s North American food and beverage businesses. This integration aims to eliminate duplication and strengthen operational efficiency.
Despite challenges, PepsiCo reaffirmed its full-year outlook. The company expects core constant currency earnings per share to remain flat and organic revenue to grow at a low-single-digit pace. This follows last quarter’s forecast cut due to tariffs, economic uncertainties, and cautious consumer spending.
Analysts believe US PepsiCo earnings demonstrate the company’s ability to adapt to market pressures while maintaining profitability. Investors remain optimistic about PepsiCo’s long-term strategy to regain domestic sales momentum.
For more business updates, visit DC Brief.
