Description

PepsiCo’s U.S. Snack Turnaround: Can Affordability Restore Durable Growth?

PepsiCo reported second-quarter results reflecting a combination of strengths and challenges across its global segments. The company achieved nearly 7% revenue growth in the first half of 2026, supported by a 3% volume increase in foods and 2% in beverages worldwide, marking the fastest volume growth since 2022. This growth was driven notably by a turnaround in the U.S. foods business, where volume and market share in the salty snacks category shifted from negative to positive territory—a key strategic objective. PepsiCo attributes this to two main factors: affordability initiatives through selective price reductions and portfolio transformation focusing on permissible and portion-controlled products. Internationally, the company experienced robust growth with a 7% increase accelerating in Q2, contributing significantly to PepsiCo’s revenues and volumes. Regions such as the Middle East, Asia, Europe, and Latin America remained resilient despite inflationary pressures and elevated gasoline prices. Global procurement agility helped mitigate some inflation impacts.