PepsiCo Reports Q2 2025 Earnings: Revenue Surpasses Expectations

PepsiCo Inc. (NASDAQ: PEP) announced its second-quarter earnings for 2025 on July 17, 2025, revealing a performance that exceeded analysts' expectations despite facing challenges in North American demand. The company reported a net income of $1.26 billion, equivalent to 92 cents per share, a decrease from $3.08 billion or $2.23 per share during the same period last year. According to a survey conducted by LSEG, analysts had anticipated an adjusted earnings per share of $2.03.

PepsiCo's total revenue for the quarter reached $22.73 billion, surpassing the expected $22.27 billion. The company's organic revenue, which excludes acquisitions and currency fluctuations, saw a 2.1% increase. However, the firm acknowledged a decline in worldwide volume, which fell by 1.5% for food products and remained flat for beverages. Notably, North America witnessed a 1% decrease in food volume and a 2% drop in beverage volume, even as the flagship Pepsi brand experienced a surge in sales.

CEO Ramon Laguarta emphasized that the company's North American operations are showing signs of improvement, despite the overall volume decline. He noted that Pepsi Zero Sugar, in particular, achieved double-digit growth during the quarter. To address declining demand, PepsiCo is adopting strategies that include enhancing its product offerings in the protein market and collaborating with brands such as Siete Foods and Sabra to diversify its portfolio.

In response to the challenging market conditions, PepsiCo has implemented cost-cutting measures, which included the closure of two manufacturing plants in North America. The company is also optimizing its logistics and transportation efficiencies and reevaluating its marketing expenditures to ensure maximum return on investment.

Looking ahead, PepsiCo has reiterated its full-year outlook, projecting that core constant currency earnings per share will remain largely unchanged from the previous year, with organic revenue anticipated to grow by a low-single-digit percentage. Last quarter, the company had revised its earnings forecast due to factors such as new tariffs, economic volatility, and a cautious consumer base.

The company’s proactive measures and commitment to adapting its business strategy are crucial as it navigates a complex market landscape characterized by shifting consumer preferences and economic uncertainties. As PepsiCo continues to refine its approach to product availability and marketing effectiveness, stakeholders are watching closely for signs of recovery in its North American segment. The implications of these earnings results will likely resonate through the industry, offering insights into consumer behavior and economic trends as we progress through 2025.