PepsiCo beats revenue estimates, flags pressure from tighter consumer budgets
PepsiCo, Inc. PEP | 0.00 |
July 9 (Reuters) - PepsiCo PEP.O beat Wall Street estimates for second-quarter revenue on Thursday, as the beverage giant benefits from improving demand for salty snacks in the U.S. and resilient demand for zero sugar sodas.
The company kept its annual forecasts unchanged, but flagged that tightening consumer budgets due to rising inflationary pressures had held back its growth in North America.
"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's quarterly revenue rose 6.4% to $24.18 billion from a year earlier, while analysts estimated 5.4% increase to $23.95 billion, according to data compiled by LSEG.
It expects fiscal 2026 organic revenue to be in the range of 2% to 4%.
It also expects fiscal 2026 core constant currency earnings per share to rise between 4% and 6%.
