PepsiCo reported second-quarter earnings and revenue that surpassed Wall Street expectations, even as the food and beverage giant continues to face sluggish consumer demand in North America. The company reaffirmed its full-year guidance, signaling cautious optimism amid economic uncertainty.
In premarket trading on Thursday, PepsiCo shares rose nearly 2%, reflecting investor confidence in the company’s performance despite ongoing challenges.
PepsiCo Q2 2025 Results: Key Highlights
According to data from LSEG, here’s how the company performed compared to analyst estimates:
- Earnings per share (EPS): $2.12 adjusted vs. $2.03 expected
- Revenue: $22.73 billion vs. $22.27 billion expected
Net income attributable to PepsiCo fell to $1.26 billion, or 92 cents per share, compared to $3.08 billion, or $2.23 per share, in the same quarter a year ago. However, when excluding restructuring, impairment charges, and other items, adjusted EPS came in at $2.12.
Total net sales rose 1% to $22.73 billion, while organic revenue—which excludes the effects of acquisitions, divestitures, and currency fluctuations—grew by 2.1%.
Volume Declines Continue, But Bright Spots Emerge
Despite the earnings beat, PepsiCo’s global volume trends highlight a softening consumer environment.
- Worldwide food volume declined by 1.5%
- Global beverage volume was flat
- In North America, food volume fell 1%, and beverage volume dropped 2%
CEO Ramon Laguarta acknowledged that domestic performance is improving but remains under pressure. However, there were bright spots, particularly in beverages: Pepsi’s namesake soda saw volume growth, and Pepsi Zero Sugar posted double-digit volume gains.
Strategic Shifts to Boost Growth
To address softening demand, PepsiCo is doubling down on several initiatives:
- Tapping into the protein trend and multicultural offerings, such as products from Siete Foods and Sabra
- Enhancing in-store availability and shelf placement
- Improving logistics and transportation efficiencies
- Closing two food manufacturing plants to cut costs
- Reassessing marketing spend for better ROI
- Reducing operational overlaps between its North American food and beverage segments
Outlook Remains Unchanged
PepsiCo reiterated its full-year guidance, expecting:
- Core constant currency EPS to remain roughly flat year-over-year
- Organic revenue growth in the low-single digits
This follows the company’s decision last quarter to trim its earnings forecast due to new tariffs, economic headwinds, and a more cautious consumer landscape.