PepsiCo Reports Q2 Earnings Miss Amid Weak North American Market Demand

PepsiCo reported mixed second-quarter 2026 financial results, with revenue exceeding Wall Street expectations but adjusted earnings slightly missing forecasts as weaker demand in its North American market weighed on performance. The company said tightening consumer budgets and inflationary pressures affected sales momentum in its key domestic food and beverage categories.

According to the company’s results, PepsiCo recorded net income attributable to the firm of $2.98 billion, or $2.18 per share, in the second quarter, compared with $1.26 billion, or 92 cents per share, during the same period earlier. Excluding restructuring costs, impairment charges, and other expenses, adjusted earnings stood at $2.20 per share.

The company reported quarterly revenue of $24.18 billion, marking a 6.4% increase and exceeding analysts’ expectations of $23.95 billion. Organic revenue, which excludes the impact of currency fluctuations, acquisitions, and divestitures, grew by 2.4%. PepsiCo said stronger international demand helped support overall revenue growth despite challenges in its domestic market.

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PepsiCo CEO Ramon Laguarta said the company’s performance was affected by slower growth in the US food and beverage sector as consumers faced higher inflation and reduced spending power. While global food volumes increased by 3% and beverage volumes rose by 2%, North American operations continued to experience pressure.

The company’s North American beverage division reported a 4% decline in volume during the quarter, while its North American food business maintained stable volume levels. PepsiCo attributed some of the pressure to price increases implemented over the past two years, which affected consumer demand for several popular brands.

To attract customers, PepsiCo has introduced pricing adjustments and brand initiatives, including lowering prices on products such as Lay’s, Tostitos, Doritos, and Cheetos, while also refreshing major brands like Lay’s and Gatorade. The company maintained its full-year outlook, expecting organic revenue growth of 2% to 4% and core constant-currency earnings per share growth of 4% to 6%.

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