PURCHASE, N.Y. — PepsiCo's stronger-than-expected quarterly earnings and reaffirmed full-year guidance provided reassurance to investors about the company's broader business despite continued weakness in its North American snacks operations, with executives pointing to robust international demand and portfolio expansion as key drivers of growth.
The food and beverage company reported second-quarter net revenue of $24.18 billion, up 6.4% from a year earlier, while earnings per share rose sharply on a reported basis and core earnings per share increased 4%, according to its quarterly results. Organic revenue grew 2.4%, and the company maintained its fiscal 2026 outlook, forecasting organic revenue growth of 2% to 4% and core constant-currency earnings-per-share growth of 4% to 6%.
Chairman and Chief Executive Officer Ramon Laguarta said the company's performance reflected broad-based momentum across its global businesses.
"Our second quarter results featured strong organic volume and net revenue growth for the global convenient foods and global beverages businesses," Laguarta said in the earnings release, adding that international operations and an expanding product portfolio supported the company's results.
The earnings report underscored the importance of PepsiCo's international markets, where demand helped offset softer conditions in North America. The company said consumers continued to respond to products emphasizing hydration, protein, fiber and zero-sugar offerings as it broadened its portfolio.
However, PepsiCo also acknowledged persistent pressure in its domestic business. North American food sales declined as consumers remained cautious about discretionary spending, prompting the company to continue price reductions on selected snack products while investing in innovation and product reformulation. Executives said inflation and higher fuel prices had weighed on consumer purchasing patterns, particularly for convenience-store sales.
The company warned that commodity, packaging and logistics costs are expected to rise during the second half of 2026, although Chief Financial Officer Steve Schmitt said productivity initiatives and tariff refunds should help offset part of those increases.
Despite those challenges, PepsiCo left its annual financial guidance unchanged, signaling confidence that continued international expansion, cost-management measures and product innovation would support earnings through the remainder of the year.
PepsiCo said it will continue executing its strategy of expanding healthier and functional food and beverage offerings while pursuing productivity improvements across its operations as it works to strengthen performance in North America without altering its outlook for fiscal 2026.
