PepsiCo (PEP) Delivers 6.4% Revenue Growth in Q2 While Affirming 2026 Outlook
Key Takeaways
- PepsiCo reported net revenue of $24.18 billion for the second quarter, up 6.4% year over year and ahead of analyst expectations.
- Adjusted earnings per share came in at $2.20, slightly below the $2.21 consensus estimate but up 4% from the prior year on a core basis.
- Organic revenue grew 2.4%, driven by effective net pricing and modest volume gains, with international segments showing strong performance.
- North American convenient foods and beverages faced pressure from tighter consumer budgets amid inflation.
- The company affirmed its full-year 2026 guidance for organic revenue growth of 2% to 4% and core constant currency EPS growth of 4% to 6%.
- Shares declined following the report as investors focused on domestic softness despite the revenue beat.
Putting the Results in Context
PepsiCo’s second-quarter results offer a clear window into consumer spending patterns in its largest market and the progress of its global expansion efforts. The company follows a calendar fiscal year and reported results for the 12 weeks ended June 13, 2026. Recent periods have highlighted resilience in international operations that has helped offset softer demand in the U.S., making this report a useful check on whether productivity initiatives and product innovation can maintain momentum despite macroeconomic pressures.
Breaking Down the Quarter’s Numbers
PepsiCo posted net revenue of $24.18 billion, a 6.4% increase from $22.73 billion a year earlier and above Wall Street forecasts of approximately $23.97 billion. Organic revenue rose 2.4%, supported by net pricing and volume contributions. GAAP earnings per share surged 137% to $2.18, while core EPS advanced 4% to $2.20, just missing the $2.21 consensus. Core constant currency EPS increased 1%. Operating profit grew significantly due to the absence of prior-year impairment charges, though core operating margin contracted 40 basis points. The company reaffirmed its fiscal 2026 outlook for organic revenue growth of 2% to 4% and core constant currency EPS growth of 4% to 6%.
Market Reaction and Investor Sentiment
Shares of PEP fell in after-hours trading following the release, reflecting investor disappointment with the slight EPS miss and continued softness in North American categories. Analysts noted that while revenue exceeded expectations, domestic volume trends and margin pressure weighed on sentiment. Pre-earnings positioning had been cautious amid broader consumer staples weakness, and the mixed results reinforced concerns about U.S. spending resilience.
Forward Outlook and Factors to Watch
Investors will focus on PepsiCo’s ability to sustain international momentum while addressing North American challenges. Management highlighted ongoing innovation in functional and permissible products, affordability initiatives, and productivity efforts to improve operating leverage. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Upcoming catalysts include third-quarter volume trends across segments and updates on brand restaging programs. Cost inflation, foreign exchange movements, and consumer response to pricing actions remain important variables.
Guidance affirmation suggests management views the current environment as manageable, but execution on productivity and portfolio evolution will be closely watched in coming quarters. Free cash flow conversion and capital spending discipline also merit attention as the company navigates a dynamic demand landscape.
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When analyzing results like these, I find it helpful to cross-reference with Tickeron’s AI Screener. It is an AI-powered stock and ETF discovery tool that helps traders and investors filter the market based on technical patterns, fundamentals, trends, volatility, and AI-driven signals. Users can scan thousands of stocks and ETFs using customizable filters such as industry, market capitalization, technical indicators, price patterns, and performance metrics. The screener helps identify trade ideas, trending stocks, breakout candidates, and market opportunities more efficiently than manual screening. AI Screener
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PEP sees MACD Histogram crosses below signal line
PEP saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on August 31, 2026. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 45 instances where the indicator turned negative. In 23 of the 45 cases the stock moved lower in the days that followed. This puts the odds of a downward move at 51%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on September 01, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on PEP as a result. In 31 of 87 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 36%.
PEP moved below its 50-day moving average on September 09, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for PEP crossed bearishly below the 50-day moving average on September 10, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 7 of 17 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 41%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where PEP declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 48%.
The Aroon Indicator for PEP entered a downward trend on October 06, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The RSI Indicator shows that the ticker has stayed in the oversold zone for 9 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an Uptrend is expected.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 22 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
PEP may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of 16 (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (7.937) is normal, around the industry mean (6.793). P/E Ratio (16.841) is within average values for comparable stocks, (43.051). Projected Growth (PEG Ratio) (1.316) is also within normal values, averaging (3.732). PEP has a moderately high Dividend Yield (0.045) as compared to the industry average of (0.014). P/S Ratio (1.901) is also within normal values, averaging (2.785).
The Tickeron SMR rating for this company is 20 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is 62 (best 1 - 100 worst), indicating fairly steady price growth. PEP’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 81 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. PEP’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 77, placing this stock worse than average.
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General Information
a provider of a diversified line of soft drinks and snack foods
Industry BeveragesNonAlcoholic
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