PepsiCo (PEP) Q2 Earnings Beat Expectations, Revenue Up

Stock closed at $145.44, up 7.45%

📊 Key Results

• Revenue: $22.73 billion (up 1% YoY) — beat estimates
• Adjusted EPS: $2.12 — beat expectations
• GAAP EPS: $0.92 — impacted by a $1.86 billion impairment from past acquisitions

🧃 Segment Performance

• North America:
  • Beverage volumes fell ~2%
  • Snack volumes also down ~2%
  • Revenue mostly flat, pricing helped offset declines
  • PepsiCo is shifting toward protein snacks, no-artificial ingredient options, and value offerings like Santitas and Chester’s
• International Markets:
  • Strong growth across Latin America, Asia-Pacific, and EMEA
  • Performance boosted by a weaker dollar and broader demand trends abroad

📈 Guidance Update

• Full-year core EPS decline revised from -3% to -1.5%
• Organic revenue expected to grow at a low single-digit pace
• FX headwinds now expected to have a smaller impact (~1.5 percentage points vs. ~3 previously)
• Company reiterated focus on productivity initiatives and product innovation

🧭 What This Means for Investors

• Stable dividend appeal: Still a reliable income stock with strong cash flow
• International strength: Overseas growth is now the primary engine
• North America in focus: U.S. snack and beverage softness needs a turnaround
• Repricing in motion: Today’s rally signals confidence in management’s reset and new strategic focus