PepsiCo Inc
Q2 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +3.74%.
Did PEP Beat Earnings? Q2 2026 Results
PepsiCo posted a solid second-quarter 2026 performance that validated early signs of a consumer-demand recovery, with the beverage and snack giant delivering earnings per share of $2.20 on a core basis while revenue climbed 6.4% year over year to $24.18 billion, edging past analyst forecasts and extending the company's streak of beating consensus EPS estimates to four consecutive quarters. The headline revenue gain was fueled by a combination of 2.4% organic revenue growth, a 2.2-percentage-point foreign exchange tailwind, and a net benefit from recent acquisitions, with international segments proving particularly robust as Latin America Foods grew 15% and International Beverages Franchise expanded 11% on a reported basis. GAAP operating profit more than doubled to $4.02 billion, aided significantly by the absence of prior-year impairment charges tied to the Rockstar and Be & Cheery brands. Ahead of the report, some analysts had flagged risks from weaker consumer demand, making the organic volume growth, which reached its strongest year-to-date pace since 2022, a notable positive. PepsiCo reaffirmed its full-year outlook, guiding for organic revenue growth of 2-4% and core EPS growth of approximately 5-7% including currency and acquisition impacts.
- Organic volume growth at highest rate since 2022
- Effective net pricing contributing to organic revenue growth
- Strong international business performance across all segments
- Foreign exchange translation tailwind of 2.2 percentage points
- Acquisitions and divestitures contributing 1.8 percentage points to revenue growth
- Productivity savings partially offset by certain operating cost increases
- Absence of prior-year Rockstar and Be & Cheery impairment charges boosting GAAP profit
“Our second quarter results featured strong organic volume and net revenue growth for the global convenient foods and global beverages businesses. Year-to-date, PepsiCo's global organic volume has increased at the highest rate since 2022 - aided by the strength of the international business and the continued evolution of the portfolio to offer more choices through portion control varieties, diverse ingredients, functional benefits such as hydration, protein and fiber, energy and zero sugar beverage varieties.”
PepsiCo CEO, on the earnings call
Forward Guidance & Outlook
PepsiCo affirmed its fiscal 2026 financial guidance: organic revenue growth of 2-4%; core constant currency EPS growth of 4-6%; core annual effective tax rate of approximately 22%; capital spending below 5% of net revenue; free cash flow conversion ratio of at least 80%; and total cash returns to shareholders of approximately $8.9 billion (dividends of $7.9 billion and share repurchases of $1.0 billion). Foreign exchange translation is expected to provide approximately 1 percentage point tailwind to reported net revenue and core EPS growth. Acquisitions net of divestitures from 2025 are expected to contribute 1 percentage point to reported net revenue growth. These assumptions imply net revenue growth of 4-6% and core EPS growth of approximately 5-7%, including the anticipated impact of global minimum tax regulations.
PEP YoY Financials
PEP Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.