PepsiCo shares fell more than 3% on Thursday even after the company reported second-quarter net revenue of just under $24.2 billion, up 6% year over year, and GAAP net income that more than doubled to nearly $2.99 billion, both modestly beating analyst estimates. The decline was driven by ongoing weakness in its largest market, North America, where snack sales fell 2% and beverage volumes dropped 4%, with organic revenue in the drinks unit rising only 1% after stripping out acquisitions. CEO Ramon Laguarta attributed the U.S. softness to changes in consumer behavior, including higher gasoline prices reducing convenience-store traffic. International operations provided a bright spot, with organic revenue growth of 9% in beverages and double-digit gains in Asia Pacific and Latin America snacks, helping the company reiterate its full-year 2026 guidance for 2% to 4% organic revenue growth and a 4% to 6% rise in core constant-currency EPS. The Dividend King, whose yield has climbed to nearly 4.3% as the stock hovers near a 52-week low, plans to return $7.9 billion in dividends and $1 billion in buybacks this year, though concerns about North America and shifting consumer health trends continue to weigh on sentiment.
PepsiCo IncNorth America snack sales fell 2% and beverage volumes dropped 4%, indicating weak consumer demand in its largest market
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