Overview

• Snack and beverage giant's Q2 net revenue rose 6.4% yr/yr, driven by international growth

• Core EPS for Q2 slightly missed analyst expectations

• Company affirmed its full-year 2026 financial guidance

Outlook

• PepsiCo affirms fiscal 2026 financial guidance

• Company to focus on accelerating top line growth and brand restaging

• PepsiCo elevating productivity to improve operating leverage

Result Drivers

• INTERNATIONAL GROWTH - Strong organic volume growth in Asia Pacific Foods, International Beverages Franchise, and EMEA segments, with sequential improvement in Latin America Foods

• PRODUCTIVITY SAVINGS - Core operating profit growth was primarily driven by productivity savings and effective net pricing, partially offset by certain operating cost increases

• ACQUISITIONS AND FX - Net revenue growth benefited from acquisitions made in 2025 and a 2.2-percentage-point benefit from foreign exchange translation

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 10 "strong buy" or "buy", 15 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the non-alcoholic beverages peer group is "buy."

• Wall Street's median 12-month price target for PepsiCo Inc is $170.00, about 19.3% above its July 8 closing price of $142.51

• The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 18 three months ago

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