Q2 2026 PepsiCo Inc Earnings Call Transcript
Key Points
- PepsiCo Inc (PEP) reported a 7% revenue growth in the first half of 2026, with global volumes increasing by 3% in foods and 2% in beverages.
- The company successfully turned around its US Foods business, gaining volume share in the category.
- International business remains strong, with a 7% growth, and is expected to continue performing well into the second half of the year.
- PepsiCo Inc (PEP) is seeing positive results from its portfolio transformation, particularly in the non-sugar beverage and permissible food segments.
- The company is optimizing its affordability investments, which have helped increase volume in core brands and categories.
- North American business, particularly in the convenience and gas channels, underperformed due to higher gas prices impacting consumer behavior.
- Volume growth in North America was not as high as expected, partly due to delays in executing price investments with some customers.
- There is an expectation of continued commodity inflation, particularly in EMEA, which could pressure margins.
- The company faces challenges in optimizing return on investment for affordability initiatives, requiring adjustments in strategy.
- PepsiCo Inc (PEP) experienced margin pressure in its PBNA segment, with a 90 basis point decline in operating margin due to gross profit rate issues.
Good morning and welcome to PepsiCo's 2026 second quarter earnings question-and-answer session. (Operator Instructions) Today's call is being recorded and will be archived at www.pepsico.com.
It is now my pleasure to introduce Mr. Ravi Pamnani, Senior Vice President of Investor Relations. Mr. Pamnani, you may begin.
Thank you, Kevin, and good morning, everyone. I hope everyone has had a chance this morning to review our press release and prepared remarks, both of which are available on our website.
Before we begin, please take note of our cautionary statement. We may make forward-looking statements on today's call, including about our business plans, guidance, and outlook. Forward-looking statements inherently involve risks and uncertainties and only reflect our view as of today, July 9, 2026, and we are under no obligation to update.
When discussing our results, we refer to non-GAAP measures, which
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