PepsiCo, Inc. · PEP · FY2026 Q2 · Calendar Q3 2026

PepsiCo Q2 2026: 7% First-Half Revenue Growth, International Leads Despite Domestic Softness

PepsiCo's Q2 2026 results showed 7% first-half revenue growth with the fastest volume growth since 2022, driven by international markets now exceeding $40 billion in revenue. The company beat consensus on both EPS ($2.20 vs $2.19) and revenue ($24.18B vs $23.95B), yet the stock fell 3.3% on the session with an abnormal move of -4.1% against a rising benchmark, suggesting investors focused on soft U.S. volume growth and margin pressure in beverages rather than the headline beat. Management reaffirmed full-year guidance, supported by tariff refunds expected to contribute roughly one full EPS point, and continued portfolio transformation through acquisitions (Siete, Poppi) and innovation (Doritos Protein, Naked Juice, functional hydration).

Reported Before market openNASDAQConsumer Defensive $190.95B market cap
100quality score

Company context

Snapshot as of publication

PepsiCo, Inc. is a global enterprise that creates, promotes, and supplies a diverse array of drinks and easy-to-prepare food items across the globe. Its operations are structured into seven primary divisions: Frito-Lay North America, Quaker Foods North America, PepsiCo Beverages North America, Latin America, Europe, Africa/Middle East/South Asia, and the Asia Pacific, Australia, New Zealand, and China Region. The company's extensive product catalog encompasses popular snack foods like various dips, cheese snacks, spreads, and a range of chips (including corn, potato, and tortilla varieties). Its pantry staples feature cereals, rice, pasta, baking mixes, beverage syrups, granola bars, grits, oatmeal, rice cakes, and ready-made side dishes.…

Earnings scorecard

Reported versus consensus
Reported EPS $2.20 Consensus $2
EPS surprise +0.5% Reported versus consensus
Reported revenue $24.18B Consensus $23.95B
Revenue surprise +1.0% Reported versus consensus

Market reaction

prior-close to event-session close
Stock move -3.3% Event window
SPY move +0.8% Same window
Abnormal move -4.1% Stock minus SPY
Volume 1.9× Versus trailing sessions
Subsequent drift +1.4% Up to 20 sessions
PEPSPY benchmark

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Transcript intelligence

What changed

Q2 2026 EPS came in at $2.20 versus a $2.19 consensus estimate (a 0.5% surprise), while revenue of $24.18 billion exceeded the $23.95 billion consensus by roughly 1.0%. First-half revenue grew 7% with the fastest volume growth since 2022. International markets drove the improvement, with the international business now exceeding $40 billion in revenue and becoming profit-accretive. U.S. volume growth was modest, with affordability pricing and impulse-channel execution cited as ongoing focus areas. The stock declined 3.3% (market-adjusted -4.1%) on 1.86x baseline volume, though it subsequently drifted up 1.4%.

Guidance delta

Management maintained full-year EPS and revenue guidance. Tariff refund claims are expected to add roughly one full point of EPS for the year, helping offset commodity inflation pressures. A higher effective tax rate flagged for Q3 was acknowledged but did not alter the full-year outlook.

Key takeaways

  • First-half revenue grew 7% with the fastest volume growth since 2022, led by international markets.
  • EPS of $2.20 beat consensus by 0.5%; revenue of $24.18 billion beat by 1.0%.
  • International business now exceeds $40 billion in revenue and is becoming profit-accretive.
  • U.S. volume growth remained modest; affordability pricing and impulse-channel execution are focus areas.
  • Siete and Poppi acquisitions are integrating and contributing to growth.

Management priorities

  • Scale innovations including Doritos Protein, Naked Juice, and multi-pack portion-control formats.
  • Accelerate shelf-space expansion and permanent perimeter placements in H2.
  • Optimize trade-investment ROI across high-low and everyday-low-price channels.
  • Expand combined mixing centers and logistics integration to lower supply chain costs.
  • Continue productivity initiatives and invest in away-from-home channel growth.

Related earnings events

Consumer Defensive
PM · FY2026 Q2 · Calendar Q3 2026PM Beats Q2 on Smoke-Free Momentum, Holds Full-Year Guidance

Sources

  1. Earnings call transcript and parsed analysis · 2026-07-09T19:04:04.062946+00:00
  2. FN2 earnings calendar · 2026-07-28T01:23:15.070317+00:00
  3. Polygon adjusted daily market bars · 2026-07-28T13:41:30.037174+00:00
  4. Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-07-28T13:41:30.033778+00:00

Methodology

Reported and consensus figures come from FN2's earnings event records. Market reaction and volume are calculated from daily adjusted bars around the event; abnormal move subtracts the SPY move over the same window.

Transcript intelligence is a structured synthesis of the current and prior earnings-call analyses. Missing values stay missing and are never estimated.

By FN2 Research · Updated . For educational purposes only; not investment advice.