PepsiCo reported second-quarter earnings that beat Wall Street expectations, with adjusted earnings per share of $2.12 and revenue of $22.73 billion, despite ongoing weakness in its North American food and beverage divisions. The results, released Thursday, boosted Pepsi shares roughly 2% in premarket trading.
The earnings exceeded analysts' forecasts of $2.03 per share, according to LSEG data, while revenue surpassed the consensus estimate of $22.27 billion. Net income attributable to PepsiCo fell to $1.26 billion, or 92 cents per share, from $3.08 billion, or $2.23 per share, a year earlier. Excluding restructuring and impairment charges, the company posted the stronger adjusted EPS figure.
Organic revenue increased 2.1% from the prior year, despite global volume falling 1.5% for food and remaining flat for beverages. In North America, food volume declined 1%, while beverage volume dropped 2%. However, executives said Pepsi Zero Sugar experienced double-digit volume growth, and volume for the flagship Pepsi brand rose.
"Our business remained resilient during the second quarter, navigating through a complex geopolitical and macroeconomic environment," PepsiCo executives said in a statement.
PepsiCo has been ramping up efforts to revive U.S. sales by expanding multicultural offerings through brands like Siete Foods and Sabra, and tapping into consumer interest in protein-rich snacks. It has also responded to pricing pressure from tariffs by adjusting its raw material sourcing and closing two North American food manufacturing facilities during the quarter to trim costs.
Organic revenue in the North American beverage segment rose 1%, reversing a 2% decline from the prior quarter. Meanwhile, international markets contributed approximately 40% of PepsiCo's total revenue, aided by a weaker U.S. dollar and solid demand across Europe.
