Dive Brief:
PepsiCo expects tariff refunds it has claimed to yield about one percentage point of earnings-per-share growth this year, giving the company a needed boost as it manages higher costs and changing consumer spending patterns, CFO Steve Schmitt said during a Thursday earnings call.
The beverage and snacks giant reported second-quarter net revenue of $24.2 billion, up 6.4% year over year, with core EPS of $2.20, up 4%. While the company reaffirmed its 2026 outlook, profitability and demand trends remained mixed, with core operating margin down 40 basis points to 16.8% and North America convenient foods revenue declining. PepsiCo also expects higher input cost inflation in the second half of the year.
“We do expect some more pressure on the business from a commodity standpoint,” Schmitt said on the company’s second-quarter earnings call. “We also expect refund claims for tariffs paid last year to help offset some of the commodity pressures that we have and allow us to continue to play offense.”
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