Update: PepsiCo Fiscal Q2 Core Earnings, Revenue Rise; Maintains Fiscal 2026 Guidance; D A Davidson Lowers Price Target

(Updates with the stock move and analyst comments in the last four paragraphs.) PepsiCo (PEP) reported fiscal Q2 core earnings Thursday of $2.20 per diluted share, up from $2.12 a year earlier. Analysts polled by FactSet expected $2.19. Net revenue for the quarter ended June 13 was $24.18 billion, compared with $22.73 billion a year earlier. Analysts surveyed by FactSet expected $23.95 billion. For fiscal 2026, the company said it continues to expect core constant-currency EPS to rise 4% to 6% and organic revenue to grow between 2% and 4%. Shares of the company, however, closed lower on Thursday, down 3.3%. After two quarters of progress, Pepsi's Q2 results represented a "step backward for the business as higher gas prices dented consumer demand (particularly at convenience stores), largely offsetting recent reset actions by management," according to a note from D A Davidson late Thursday. "While disappointing, we see the setback as temporary," Senior Research Analyst Eli Sanders wrote in the note. "Management's plan is credible and should continue to resonate with consumers, particularly if gas prices come down." The brokerage reiterated its Buy/Add stock rating while.