PepsiCo reported stronger-than-expected second-quarter revenue on Thursday, with growing consumer interest in salty snacks and zero-sugar soft drinks helping the beverage giant outpace analyst projections.
Despite the solid quarterly showing, the company acknowledged that rising inflationary pressures are tightening household budgets across North America, putting a damper on its overall growth momentum. PepsiCo chose to leave its annual forecasts in place.
“Results were tempered in the quarter as U.S. food and beverage category performance moderated with consumer budgets tightening due to rising inflationary pressures,” CEO Ramon Laguarta said in prepared remarks.
The company posted quarterly revenue of $24.18 billion, a 6.4% jump compared to the same period last year. Analysts had projected a 5.4% increase, putting expected revenue at $23.95 billion, according to figures compiled by LSEG.
Looking ahead, PepsiCo said it expects fiscal 2026 organic revenue growth to land somewhere between 2% and 4%. The company also projected that its fiscal 2026 core constant currency earnings per share would increase in the range of 4% to 6%.
