PepsiCo Reports Strong Q2 Sales, Raises 2025 Earnings Outlook Amid Currency Headwinds

PepsiCo reported second-quarter 2025 earnings that beat analyst expectations, with adjusted earnings per share of $2.12 and revenue of $22.7 billion, slightly above forecasts. Despite overall revenue growth, the company faced sluggish sales in North America, with Frito-Lay and beverage sales declining 1% and 2% respectively, partly due to years of price increases and shifting consumer preferences. International markets showed strength, with sales gains in Europe, the Middle East, Africa, and Asia Pacific, though Latin America Foods sales declined 7%. Operating profit fell sharply by nearly 56%, and adjusted operating margins contracted, influenced by higher costs including increased tariffs on imported aluminum under the Trump administration. PepsiCo reaffirmed its full-year 2025 earnings guidance despite these challenges and is undertaking strategic initiatives such as portfolio innovation, cost optimization, and segment realignment to drive growth and improve performance. Analysts currently rate PepsiCo stock as a Hold with some positive outlooks based on the company's global position and financial strength, tempered by market and tariff-related risks.