PEP earnings analysis
What we found in PEP's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
PepsiCo reported solid performance in Q2 2026 with revenue of $22.73 billion, representing a decrease of 1.1% compared to Q1 2026 but an increase of 5.8% from Q2 2025. Gross margin slightly improved to 54.7%, and diluted EPS came in at $0.92, which is a notable decline from $1.33 in Q1 but a clear year-over-year gain from $0.85 in Q2 2025.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Stable Revenue Growth
- Revenue reached $22.73 billion, up 5.8% from $21.46 billion in Q2 2025.
- Gross Margin Improvement
- Gross margin slightly improved to 54.7%, up from 54.5% in Q1 2026.
- Positive Year-over-Year EPS
- EPS of $0.92 represents a gain from $0.85 in Q2 2025.
- Resilient Free Cash Flow
- Free cash flow improved to $1.07 billion, reversing negative trends from Q1 2026.
- Successful Cash Management
- The company managed to reduce debt levels, optimizing its balance sheet.
- Segment Performance
- Snack division revenue increased to $11.2 billion, improving 7% YoY.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Consumer Demand Weakness
- Management noted potential headwinds from declining consumer demand, particularly in beverages.
- Currency Fluctuation Impact
- Foreign exchange headwinds may affect profitability in international markets due to strong dollar.
- Legal Proceedings
- Ongoing litigations, such as the Baltimore Matter, may pose financial risks.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.92
- Gross margin
- 54.7%
- Operating margin
- 16.2%
- Segment
- Frito-Lay North America: $11.2 billion
- Segment
- Beverages: $9.5 billion
- Segment
- Quaker Foods: $2.03 billion
What they said about what is next.
Management anticipates steady revenue growth but flags risks from consumer demand volatility.
The filing reads about the same as the one before it.
What came before.
- 10-Q · April 16, 2026
- PepsiCo reported solid Q1 results with net revenue of $19,443 million (vs $17,919 million a year ago) and operating profit of $3,213 million (vs $2,583 million). Diluted EPS rose to $1.70 from $1.33, and operating…
- 10-Q · July 17, 2025
- PepsiCo reported 12-week net revenue of $22,726 million, up $225 million (+1.0%) versus the prior-year quarter, but GAAP diluted EPS fell to $0.92 from $2.23 a year ago amid large impairment and restructuring charges.…
- 10-Q · July 11, 2024
- PepsiCo reported mixed-but-solid quarter: net revenue of $22,501 million (up $179 million vs $22,322 million a year ago), with gross profit rising to $12,582 million and operating profit increasing to $4,048 million.…
- 10-Q · April 23, 2024
- PepsiCo reported quarterly net revenue of $18,250 million (up $404 million vs. prior year) and diluted EPS of $1.48 (up $0.08 vs. prior year). Gross profit was $10,002 million and operating profit was $2,717 million,…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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