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PepsiCo (PEP +6%) is seeing a nice move higher today after reporting its Q2 results this morning. This beverage and snack food giant returned to EPS upside after a rare miss in Q1. Revenue grew 1% yr/yr to $22.72 bln. While this number may be modest, it did mark a return to growth after declines in the last three quarters. Organic revenue rose 2.1%, accelerating from Q1's 1.2%. This is perhaps another cause for the positive reaction as PEP is effectively navigating through trade volatility, rising supply chain costs, and subdued consumer demand.

• PepsiCo's Foods North America (PFNA) segment, which includes Frito-Lay and Quaker Foods, saw sequential improvement in organic volume trends. Encouragingly, its savory snack segment, primarily Frito-Lay, saw organic volume trends improve despite a variety of headwinds last quarter.
• Another positive is that PEP saw improvement in its market share trends in subcategories like curls and puffs, variety multipacks, corn chips, and flavored tortilla chips.
• Investors have been closely watching its PepsiCo Beverages North America (PBNA) segment. Organic revenue rose 1%, with organic volume trends improving from the prior quarter. Its Pepsi brand gained market share in the soft drink and cola categories, with Pepsi-Zero delivering double digit volume and net revenue growth. The completed acquisition of Poppi is helping PEP reach younger consumers and health-conscious buyers looking for soda alternatives.
• Amid the pressures from higher supply chain and input costs, its pricing and productivity initiatives (automation, standardization and data analytics) helped PBNA grow its core operating margin during the quarter, while PFNA is expected to improve margins in 2H25.
• PEP's away-from-home business and international business were standouts this quarter. Away-from-home saw high single digit revenue growth and local restaurant share gains, while its international business delivered a 6% increase in organic revenue, its 17th consecutive quarter of at least mid-single digit growth.

The stock has been generally trending lower since October 2024 and the stock took a hit following its Q1 report. There are several positives this quarter that helped settle investors' nerves. And that helps to explain the out-sized move today. After hitting a low point in late June, shares have been climbing steadily and are extending those gains today. The return to EPS upside and top-line growth, along with the sequential improvements across key segments, is encouraging investors. Looking ahead, its main peer Coca-Cola (KO) is reporting next week (July 22).