PepsiCo lifts earnings despite softer demand and volume declines

3rd Feb 2026 13:01

(Sharecast News) - Snacks and beverage giant PepsiCo said on Tuesday that quarterly earnings and revenues had come in ahead of market expectations, supported by an improvement in organic sales across the business even as consumer demand remained soft after a period of higher pricing.

PepsiCo said quarterly earnings and net income had come in ahead of expectations at $1.85 per share, up from $1.11 a year earlier, and $2.54bn, up from $1.52bn, respectively, supported by improved organic sales across the business despite continued softness in consumer demand after a period of higher pricing. Net sales rose 5.6% to $29.34bn, topping consensus forecasts of $28.97bn, while organic revenue increased 2.1% in the quarter.

PepsiCo acknowledged that volumes had continued to decline in several key areas, particularly in North America, where inflation‑weary shoppers have been buying fewer snacks and drinks. Global food volumes fell 2%, while beverages edged 1% higher. PepsiCo Beverages North America saw volumes shrink 4% even as organic sales rose 2%, while its North American food division posted a 1% drop in volumes.

To revive demand, PepsiCo said it will cut prices on select US snack brands, including Lay's, Tostitos, Doritos and Cheetos, aiming to boost competitiveness and purchase frequency, with productivity savings expected to offset the impact of lower prices.

Looking ahead, PepsiCo reiterated its 2026 outlook, pointing to organic revenue growth of 2% to 4% and an increase in core constant‑currency earnings per share to between 4% and 6%.

As of 1410 GMT, PepsiCo shares were up 1.73% in pre-market action at $157.89 each.

Reporting by Iain Gilbert at Sharecast.com