PepsiCo (PEP) reported Q2 sales of $24.18 billion, a 6.4% increase year-over-year, with core EPS rising 4% to $2.20. Both figures surpassed Zacks Consensus estimates, but North American sales faced challenges, with beverage volumes down 4% and food sales down 2%. Meanwhile, Coca-Cola (KO) posted stronger Q2 results with sales climbing 7% to $13.38 billion and EPS increasing 11% to $0.97, exceeding expectations by 2.5% and 5.4% respectively.
In terms of growth outlook, Zacks Consensus estimates project KO earnings to grow by 9.7% in FY26 and 7% in FY27, whereas PEP is expected to see 5.3% and 4.9% growth in the same years. Year-to-date, KO’s shares have outperformed PEP, gaining over 27% compared to a 2.7% decline for PEP. Notably, PEP trades at a forward P/E ratio of 15.9, significantly lower than KO’s 25.6.
Overall, while PepsiCo remains an attractive value play due to its diversified portfolio, Coca-Cola stands out with stronger fundamentals, including better volume trends and margin expansion, giving it an edge in the current market.
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