🔥$PEP stock rises — investors back PepsiCo’s resilience

📌 $PEP — Q2 FY2025 Earnings Report

📊 Key Metrics:

• Revenue: $22.73B
  ↗️ Organic revenue growth: +2.1% (excluding FX and M&A)
  ↗️ Total growth: +1% YoY ($22.50B in Q2 FY24)

• GAAP EPS: $0.92
  ↘️ Down 59% YoY ($2.23 in Q2 FY24), driven by one-time charges and FX losses

• Core EPS (adjusted): $2.12
  ↘️ Down ~5% in constant currency, but nearly flat vs last year

• GAAP Operating Income: $1.79B (–56% YoY)

• Core Operating Profit: $3.91B (–5% YoY in constant currency)

• Core Operating Margin: 17.2% (vs 18.3% in Q2 FY24)

📅 Full-Year Outlook:

• Organic revenue growth: 1%–3% (ex-FX and M&A)

• Core EPS: ~$8.15 (vs $8.16 in FY24)

• Effective tax rate: ~20%

• Shareholder returns: $8.6B
  • $7.6B in dividends
  • $1.0B in share repurchases

⚠️ Risks to Watch:

• A strong US dollar continues to pressure revenue when converted

• Commodity volatility (coffee, corn, sugar) could raise input costs

• One-time restructuring and brand impairment charges drag GAAP results

🚀 Upside Catalysts:

• A weaker USD could boost revenue further

• Productivity program continues to cut costs

• New flavors and product formats to strengthen global presence

• Stronger sales in EMEA, LATAM, and APAC markets

🧠 Final Takeaway:

PepsiCo is holding steady. Revenue is growing modestly, while GAAP earnings dropped sharply due to one-time impacts and FX headwinds. However, Core EPS and operational profitability remain stable — indicating a healthy core business. With reaffirmed guidance and strong free cash flow, the company remains committed to dividends and buybacks. Watch for shifts in the dollar and commodity prices going forward.