On Thursday, July 9, PepsiCo released its Q2 2026 earnings. Given how many remain worried how inflation and gas prices would affect consumer spending, this earnings call was closely watched.
Key Takeaways:
- PepsiCo released its Q2 2026 earnings, to mixed but relatively positive results.
- Earnings per share were slightly under expectations, but revenue jumped in part due to global volume growth. However, volume growth was absent in the United States, due to the impact of inflation and gas prices.
- PepsiCo’s earnings showcase why gaining diversified access to the company through the ETF wrapper can pay off, limiting one’s exposure to sectors damaged by inflation.
Overall, PepsiCo’s earnings statement was mixed, but leaned towards the positive side. Earnings per share came in one cent below expectations at $2.20, but revenue outpaced expectations at $24.18 billion.
Net revenue increased by 6.4% for the quarter and 7.3% year to date. Meanwhile, global volume increased by 3% for PepsiCo’s foods and 2% for its beverages.
However, it’s crucial to note that much of the volume growth was coming from countries outside the United States. Domestically, food volume remained unchanged, and beverage volume actually dropped by 4%.
See More: The Inflation Impact: 3 ETF Approaches for Managing Risk
That being said, this is likely less reflective of PepsiCo as a whole and more a symptom of shifting consumer sentiment. With Americans increasingly worried about inflation and prices at the pump rising, they may be skimping out on buying snacks and soft drinks.
“Our second quarter results featured strong organic volume and net revenue growth for the global convenient foods and global beverages businesses,” said PepsiCo Chairman and CEO Ramon Laguarta. “Year-to-date, PepsiCo’s global organic volume has increased at the highest rate since 2022 – aided by the strength of the international business and the continued evolution of the portfolio to offer more choices through portion control varieties, diverse ingredients, functional benefits such as hydration, protein and fiber, energy and zero sugar beverage varieties.”
Domestic Worries Make The Case for Diversification
PepsiCo’s earnings could encourage investors and advisors to play exposure to the company in a few ways. Yes, the company struggled in North America, but its global results were certainly impressive. As such, maintaining balanced exposure that doesn’t tip too much into consumer staples could pay off in the long run.
See More: Tackle Market Uncertainty With This Consumer Staples ETF
As just one example, take a look at the First Trust Morningstar Dividend Leaders Index Fund (FDL). FDL provides exposure to a variety of large-cap companies with storied track records for generating dividends.
PepsiCo is among the top five holdings for this fund, as of July 8, 2026. 4.99% of the fund’s assets are allocated towards the company.
Crucially, FDL provides noticeable sector diversification as well. While consumer staples is the top sector of the fund, it only accounts for 24.60% of the portfolio, as of July 8, 2026. This illustrates how investors can maintain disciplined exposure to PepsiCo without needing to tilt into the consumer staples sector too aggressively.
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