PepsiCo Q2 EPS Miss, $21.18B Revenue, North American Snack Revenue Down 2%
PEP•PepsiCo’s second-quarter revenue was $21.18 billion with EPS of $2.24 missing forecasts, and North American food revenue slid 2% as $4-plus gas prices dragged consumer demand despite price cuts up to 15%. Shares fell 5.5%—their worst drop since May 2022—and options volume surged, with 13,000 puts trading at four times average pace.
1. Second-Quarter Financial Results
PepsiCo reported Q2 revenue of $21.18 billion and earnings of $2.24 per share, marking an EPS miss against analyst forecasts but a top-line beat. Beverage segment strength helped offset pressure in its snack division, resulting in flat overall volume growth.
2. North American Snack Business Struggles
In North America, food revenue declined 2% and volumes remained flat after price reductions of up to 15% on brands like Doritos and Lay’s. CEO Ramon Laguarta attributed the setback to U.S. gas prices exceeding $4 per gallon, which curbed impulse purchases at convenience retailers.
3. Market Reaction and Options Surge
Shares tumbled as much as 5.5%, the steepest one-day drop since May 2022, pulling the stock below its year-to-date breakeven mark. Early trading saw 13,000 puts exchange hands—four times the average pace—indicating a surge in bearish positioning.
4. Outlook and Guidance
Management reaffirmed its fiscal 2026 guidance and projected that sustained lower price points would gradually drive volume recovery in the latter half of the year. CFO Steve Schmitt emphasized expectations for a more gradual improvement in North American snack and beverage performance.
