Transcript: PepsiCo Q2 2026 Earnings Conference Call

PepsiCo (NASDAQ: PEP ) held its second-quarter earnings conference call on Thursday. Below is the complete transcript from the call. This content is powered APIs. For comprehensive financial data and transcripts, visit Access the full call at Watch the full earnings call below: Summary PepsiCo reported a 7% revenue growth in the first half of 2026, with global volumes increasing by 3% in foods and 2% in beverages, marking the fastest growth since 2022.

The company is focusing on affordability investments and portfolio growth, particularly in the permissible and portion control segments, to drive volume growth in the US market. Despite inflationary pressures, particularly from gas prices, PepsiCo expects international business to remain strong and continues to target the low end of its long-term organic sales range for the second half of the year. Management reaffirmed full-year guidance, expecting international growth to offset softer North America performance, with tariff refunds aiding EPS growth amid commodity inflation pressures.

Operational highlights include successful strategic initiatives in international markets and ongoing investments in portfolio transformation and away-from-home channels, while addressing challenges in North America's convenience channels. Full Transcript OPERATOR Good morning and welcome to PepsiCo's 2026 second quarter earnings question and answer session. Your lines have been placed on listen-only until it is your turn to ask a question. Today's call is being recorded and will be archived at It is now my pleasure to introduce Mr.

Ravi Pamnani, Senior Vice President, Investor Relations. Mr. Pamnani, you may begin. Ravi Pamnani, Senior Vice President, Investor Relations Thank you, Kevin.

And good morning everyone. I hope everyone has had a chance this morning to review our press release and prepared remarks, both of which are available on our website. Before we begin, please take note of our cautionary statement. We may make forward-looking statements on today's call, including about our business plans, guidance, and outlook.

Forward-looking statements inherently involve risks and uncertainties and only reflect our view as of today, July 9, 2026, and we are under no obligation to update them. When discussing our results, we refer to non-GAAP measures which exclude certain items from reported results. com for definitions and reconciliations of non-GAAP measures and additional information regarding our results, including a discussion of factors that could cause actual results to materially differ from forward-looking statements. Joining me today are PepsiCo's Chairman and CEO Ramon Laguarta and PepsiCo's CFO Steve Schmidt.

We ask that you please limit yourself to one question and with that, I will turn it over to the operator for the first question. OPERATOR Thank you. In order to ask a question or make a comment, please press star followed by 1 on your touchtone phone at any time. We will pause for a moment while we compile our Q and A roster.

Our first question comes from Bonnie Herzog with Goldman Sachs. Line is open. Bonnie Herzog, Goldman Sachs Thank you. Good morning everyone.

I had a question on PF&A. You know your volume was flat despite what seems to be stepped-up affordability initiatives and innovation. So hoping you could spend some time helping us understand the changes you've made. Maybe what's working, what's not working, and then whether you need to lean in further maybe on affordability or maybe innovation to drive better volume growth.

Thank you. Ramon Laguarta, Chairman and CEO Good morning Bonnie. Let me just step back for a minute and give a full company perspective. There's a lot of things we feel good about the business and there's a few things that we're going to be very focused on in the second half to accelerate the business.

So if you step back, the company in the first half reported almost 7% revenue growth and we've grown global volumes, 3% in foods and 2% in beverages. That's the fastest growth in volumes since 2022. Including that volume growth is the volume growth in the US Foods business, which, you know, it was very strategic for us to get the category back to volume growth and to get our business to gain share of volume in the category. So we feel good about that particular turnaround and how the business is performing.

There are two pillars to how that happened. One was, as you mentioned, affordability investments. And the second one has been the growth on the permissible part of the portfolio and the portion control part of the portfolio. That part is going very well.

Now on the affordability part, we feel good about the investments. I think in the second half of the year, we're going to have to optimize the return on investment on some of those pricing investments. It depends by channel, by customer, and teams are learning. But I want you to step back and take the bigger picture that a category that was negative in volume now is positive in volume.

We were losing share in volume. Now we're gaining share in volume. And that is all very, very positive. And it was the first strategic intent that we had early in the year when we decided to lower the prices of the business.

I don't know, Steve, anything else from your side? Steve Schmidt, CFO I think that pretty much covers it. OPERATOR Thank you. One moment for our next question.

Our next question comes from Filippo Falorni with Citi. Your line is open. Filippo Falorni, Citi Hi. Good morning, everyone.

So, Ramon, you mentioned in the prepared remarks that in the US, consumer behavior was clearly impacted by rising inflationary pressures in the quarter. I was wondering if you can give us an update of what you've seen more recently. Have you seen an improvement in consumer behaviors