PepsiCo Q2 2025 Results Beat, Shares Surge

PepsiCo reported Q2 2025 results with revenue of $22.73 billion and adjusted EPS of $2.12, both beating analyst expectations, though revenue was flat year-over-year and net income dropped 59%. The company credited its performance to successful pricing strategies and international growth in snack sales, especially in India, Mexico, and China, while beverage sales in India and North America fell due to unseasonal weather and weaker demand. Despite ongoing challenges from inflation and tariffs, PepsiCo reaffirmed its full-year outlook, projecting flat core EPS in constant-currency terms and low single-digit organic revenue growth for 2025. Shares surged over 6% after the earnings announcement but remain down about 5% for the year. Management pointed to strengthened execution in North America and ongoing investments in pricing and productivity to address margin pressures. Analysts continue to rate the stock as a 'Hold' despite the positive quarterly results.