PepsiCo Stock Soars 3.01% on Strong International Growth

On July 17, 2025, PepsiCo's stock rose by 3.01% in pre-market trading, driven by strong international market growth that offset weaker demand in North America.

PepsiCo's second-quarter earnings report, released on July 17, 2025, showed a 1% increase in revenue to $22.73 billion, surpassing analyst expectations. The company's organic revenue growth of 2.1% was primarily driven by strong performances in Europe, the Middle East, Africa, and Latin America, which offset a 2% decline in North American food sales. The company's net income for the quarter was $12.6 billion, or $0.92 per share, down from $30.8 billion, or $2.23 per share, a year earlier. However, adjusted earnings per share of $2.12 exceeded market expectations of $2.03.

PepsiCo's CEO, Ramon Laguarta, highlighted the company's strong international performance and ongoing efforts to improve operational efficiency and competitiveness in key North American markets. The company reiterated its full-year guidance, expecting low single-digit organic revenue growth and flat core constant-currency earnings per share. However, it also warned of continued supply chain cost pressures, including tariffs, that could impact second-half performance.

In response to health trends and competition from private-label products, PepsiCo is actively adjusting its strategy. The company recently acquired the probiotic soda brand Poppi and plans to introduce new product lines without artificial colors and flavors. Additionally, PepsiCo is expanding the use of avocado and olive oil in some of its brands and adding protein, fiber, and whole grains to specific products. The company is also focusing on increasing the proportion of low-sugar and sugar-free products in its beverage portfolio, which has helped its flagship Pepsi brand gain market share.

PepsiCo is also implementing cost-cutting measures, such as closing two food plants in North America and improving logistics efficiency. The company is prioritizing marketing investments that offer a strong return on investment and integrating its North American food and beverage businesses to eliminate functional overlaps and achieve synergies.