Q2 performance exceeds expectations, PepsiCo's stock rises over 6%

On Thursday, PepsiCo opened up more than 6%, marking its largest increase since April 2020, reaching $144.40. On the news front, the company reported earnings per share of $2.12 in the second quarter, which is $0.09 higher than the market expectation of $2.03; revenue increased by 1.0% year-on-year to $22.73 billion, surpassing the market expectation of $22.27 billion. For 2025, the company continues to expect: low single-digit organic revenue growth; core constant currency earnings per share to be essentially flat compared to the previous year; core annual effective tax rate of around 20%; total cash returns to shareholders of around $8.6 billion, including $7.6 billion in dividends and $1 billion in share buybacks. Based on current market consensus rates, the company currently expects foreign exchange headwinds to have a negative impact of approximately 1.5 percentage points on reported net revenue and core earnings per share growth.