PepsiCo is scheduled to report its second-quarter results before the market opens Thursday. Here is what you need to know.
NET INCOME: The snacks and soda maker is projected to post a profit of $2.99 billion, up from $1.26 billion in the same quarter last year, according to a consensus of analysts polled by FactSet.
ADJUSTED EARNINGS: Stripping out certain one-time items, earnings are expected to come in at $2.19 a share. That compares with adjusted earnings of $2.12 a share a year earlier.
SALES: Quarterly sales are forecast to be $23.95 billion, ahead of the $22.73 billion it noted a year ago.
Shares have fallen 6.7% over the past three months and were recently trading hands at $144.50.
WHAT TO WATCH
--PepsiCo is working to improve its sales by cutting prices across its snacks business to bring back inflation-weary customers and restaging several of its largest brands to lean into current trends. Investors will be looking for updates on the Purchase, N.Y., company's growth strategies, as well as for proof that the efforts are paying off.
--PepsiCo's efforts to reinvigorate top-line sales initially showed some signs of success, UBS analysts said. Recently, though, trends have recently come under pressure for the majority of May and into early June, and investor sentiment has become much more negative. "Despite weaker consumption, we think the base case expectation is for PepsiCo to still reiterate their FY26 guidance next week," the analysts wrote. "That said, we think achieving growth towards the higher end of the company's organic sales outlook (+2-4%) in the back half of the year appears a bit aspirational and would expect management to appropriately update their commentary."
--PepsiCo's turnaround should have been in full swing by May, but it hasn't been evident, BNP Paribas analysts said. "Big strategic changes are unlikely (for now) and we remain hopeful for greater traction in 2H," they wrote. Looking ahead, the analysts wouldn't be surprised if activist investor Elliott Investment Management starts pushing for bigger changes come this fall, assuming PepsiCo's turnaround continues struggling to take hold.
Write to Connor Hart at connor.hart@wsj.com
(END) Dow Jones Newswires
July 08, 2026 12:19 ET (16:19 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
Comments