PepsiCo reported mixed results for the second quarter ending June 13, 2026, as the company missed Wall Street’s earnings per share expectations but beat revenue estimates. Earnings per share came in at $2.20 on an adjusted basis, slightly below the $2.21 expected, while revenue grew to $24.18 billion, surpassing the anticipated $23.95 billion. Net income rose significantly year over year to $2.98 billion, or $2.18 per share, reflecting some positive financial traction despite challenges in key markets.

The company’s revenue gains were largely driven by strong international demand, particularly outside North America. Globally, PepsiCo’s food volume increased by 3% and beverage volume by 2%, but its North American segments faced notable difficulties. North American food volumes remained flat, and beverage volume declined by 4%, as consumers in the U.S. cut back spending amid inflation and surging fuel prices, which reached a four-year high of $4.56 per gallon in late May.

CEO Ramon Laguarta acknowledged that the soft performance in the U.S. was impacted by consumer budget tightening due to rising inflationary pressures and elevated gasoline costs linked to geopolitical tensions. Demand weakened especially at convenience stores, a key sales channel for the company. CFO Steve Schmitt pointed out the need for improvements in convenience and gasoline retail channels, expressing hope for positive momentum as gas prices hopefully ease. PepsiCo has responded with price cuts on popular snack brands and has revamped some iconic products to stimulate sales.

Despite the current headwinds, PepsiCo maintained its full-year guidance, forecasting organic revenue growth of 2% to 4%, and core constant currency earnings per share to increase in the range of 4% to 6%. The company anticipates a gradual recovery in North American volumes but admitted that the pace of improvement is slower than originally expected after the Q2 setback. Overall, PepsiCo continues to navigate the balance between international growth and domestic market pressures in a challenging economic environment.