PepsiCo, Inc. is a global food and beverage leader headquartered in New York. Founded in 1965 through the merger of Pepsi-Cola and Frito-Lay, the company operates in over 200 countries and territories. PepsiCo’s diverse portfolio includes iconic brands like Pepsi, Mountain Dew, Gatorade, Tropicana, Lay’s, and Quaker. It is known for its broad product range, spanning soft drinks, snacks, and nutrition products.
PepsiCo focuses on performance with purpose, aiming for sustainable growth while reducing its environmental footprint. The company has committed to water conservation, sustainable sourcing, and reducing carbon emissions across its supply chain. In addition to its sustainability initiatives, PepsiCo continually innovates in health and wellness, offering more nutritious products to meet evolving consumer preferences.
Pepsi Fiscal Q2 2025
PepsiCo (PEP) Q2 revenue beat expectations, driven by strong demand for sodas and snacks in the U.S., Europe, and other major markets. Also, adjusted EPS reached $2.12, surpassing forecasts of $2.03.
PepsiCo responded to shifting consumer preferences with healthier options, including its newly acquired prebiotic soda brand Poppi.
Key Highlights:
- Organic sales growth hit 2.1%, led by Asia Pacific and Europe.
- The North America beverage unit saw a modest 1% sales increase, despite volume declines.
- Quaker Foods North America sales dropped 24% due to product recalls.
- International business contributed near 40% of total net revenue, showing resilience amid global uncertainty.
Guidance and Outlook
For fiscal year 2025, the company expects modest growth and stable financial performance.
It projects a low-single-digit increase in organic revenue and anticipates core constant currency earnings per share (EPS) will remain roughly flat compared to the previous year.
The core effective annual tax rate is estimated at about 20%. Additionally, the company plans to return approximately $8.6 billion in cash to shareholders, consisting of $7.6 billion in dividends and $1.0 billion in share repurchases.
Foreign exchange translation is expected to create a 1.5-percentage-point headwind. This may reducing reported net revenue and core EPS growth. Based on these factors, the company now foresees a 1.5% decline in core EPS for 2025, compared to $8.16 reported in 2024.
Board Statements
PepsiCo’s Chairman and CEO Ramon Laguarta, expressed optimism about the company’s performance, highlighting accelerated net revenue growth compared to the previous quarter. He noted that despite a challenging environment, the business improved execution and competitiveness in key subcategories and channels across North America.
Looking ahead, Laguarta emphasized the company’s intention to build upon the success of its international expansion while accelerating efforts to enhance the performance of its North American segment.
For fiscal year 2025, the company remains confident in achieving low-single-digit organic revenue growth. It expects core constant currency earnings per share (EPS) to remain approximately flat compared to the prior year.
Additionally, Laguarta shared that the outlook for core USD EPS has improved due to moderating foreign exchange headwinds, stemming from the weakening of the U.S. dollar.
Impact on the Market
PepsiCo’s better-than-expected earnings had a positive impact on its stock. After reporting strong second-quarter results. PEP stock jumped as much as 6%, reaching its highest level since April 2025.
The company also revised its full-year profit outlook, now expecting a smaller 1.5% decline in core EPS instead of the previously projected 3% drop. This improved forecast, along with strong demand for energy drinks and healthier sodas, boosted investor confidence and helped drive the stock’s sharp rise
