Shares of PepsiCo, Inc. (NASDAQ: PEP) gained over 6% on Thursday after the corporate beat expectations on each income and earnings for the second quarter of 2025. The beverage big additionally maintained its income outlook for the total yr however revised its steering for core earnings per share. Listed below are the important thing takeaways from the earnings report:
Outcomes beat estimates
PepsiCo’s internet income inched up 1% to $22.7 billion in Q2 2025 in comparison with the prior-year interval, beating estimates of $22.3 billion. GAAP earnings per share decreased 59% year-over-year to $0.92. Core EPS declined 5% on a continuing foreign money foundation to $2.12, however surpassed projections of $2.03.
North America enchancment and worldwide energy
In the course of the second quarter, PepsiCo witnessed continued momentum in its worldwide enterprise and enchancment in its North America enterprise even because it confronted a difficult macroeconomic surroundings.
In North America, though class demand remained muted, the corporate noticed enchancment in natural quantity traits in handy meals and drinks. The energy in drinks was led by Pepsi, with continued good points from Pepsi Zero Sugar. PEP continues to work on driving development by way of product innovation, partnerships and an elevated give attention to more healthy choices.
In Q2, PepsiCo accomplished the acquisition of poppi, a prebiotic, fashionable soda enterprise with sturdy retail gross sales. This acquisition is predicted to develop the corporate’s drinks portfolio and its attain with youthful customers.
The worldwide enterprise noticed natural income development of 6% in Q2. Natural revenues within the drinks enterprise elevated 9%, helped by energy in markets like Mexico, Germany, Poland and France. The handy meals enterprise recorded natural income development of 4%, led by good points in markets like Mexico, Brazil, Colombia and India.
Outlook
PepsiCo expects its enterprise to remain resilient by way of the rest of fiscal yr 2025, helped by energy in its worldwide enterprise and enchancment in its North America enterprise.
For FY2025, PEP continues to count on a low-single digit improve in natural income. Core fixed foreign money EPS is predicted to be approx. even with the prior yr. Nonetheless, the corporate now expects core EPS to say no 1.5% for the yr versus its earlier expectation of a 3% decline.
