PepsiCo stock was falling Thursday after the soft drinks and snacks maker said it had lost market share in North America, overshadowing a second-quarter earnings beat.

Shares slid 0.7% to $141.50 ahead of the opening bell. Futures tracking the S&P 500 were 0.2% higher, as investors got over the worst of their fears about the flare-up in tensions between the U.S. and Iran.

The maker of Lay's, Doritos, Pepsi, and Gatorade reported an adjusted profit of $2.20 a share for the second quarter, as revenue climbed 6.4% from a year ago to $24.18 billion.

Analysts were expecting adjusted earnings of $2.19 a share on revenue of $23.95 billion, according to a FactSet poll.

Still, the earnings beat wasn't enough to reassure investors, who want to see more evidence that CEO Ramon Laguarta's turnaround plan is taking hold. Shares were down 0.7% for the year through Wednesday's close.

PepsiCo's international business helped drive top-line growth. But sales volumes for the North America beverages division slid 4% from a year ago, suggesting the company is struggling to defend its market share in a core market.

Like many packaged-food companies, PepsiCo is facing a difficult U.S. environment. Consumers remain price-sensitive after years of inflation and are increasingly seeking products with less sugar, simpler ingredients, and more protein or fiber.

Activist investor Elliott Investment Management has been pushing PepsiCo to cut prices on selected products, expand more affordable pack sizes, refresh major brands like Lay's and Tostitos, and launch new products such as Doritos Protein.

PepsiCo has also closed plants and eliminated manufacturing lines, helping offset higher advertising and marketing spending. The company reported an operating margin of 16.6% for the quarter, up from 7.9% a year ago.

Management stuck by its guidance for 2026, forecasting organic revenue growth of between 2% and 4% and core earnings growth of between 4% and 6%.

Write to Evie Liu at evie.liu@barrons.com and George Glover at george.glover@dowjones.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

July 09, 2026 07:21 ET (11:21 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.