Coca-Cola and PepsiCo both reported second-quarter results this summer, and a five-year comparison shows sharply divergent outcomes for the two beverage rivals. Coca-Cola shares have returned 84.09% over five years, while PepsiCo has gained 3.08%.
Coca-Cola posted adjusted earnings of $0.97 per share on revenue of $13.38 billion, up 6.7% year over year, its fifth consecutive earnings beat. Global unit case volume rose 5%, with Coca-Cola Zero Sugar up 16% across every segment. The company raised its full-year organic revenue guidance to around 5%.
Chief Executive Henrique Braun said the company “delivered another strong quarter by staying close to the changing needs of our consumers and customers.”
PepsiCo reported revenue of $24.181 billion, up 6.4% year over year, with core earnings of $2.20 per share. But its Foods North America unit fell 2% on weaker net pricing, and core operating margin contracted 40 basis points. International segments carried the quarter, with Latin America Foods up 15% and the EMEA region up 10%.
Chief Executive Ramon Laguarta pointed to “the continued evolution of the portfolio to offer more choices through portion control varieties, diverse ingredients, functional benefits.”
The structural difference between the two businesses helps explain the return gap. Coca-Cola sells concentrate and leaves capital-intensive production to bottlers, giving it a gross margin of 61.6%. PepsiCo runs trucks, plants and snack lines across its combined food and beverage operation, producing a gross margin of 54.1% and an operating margin of 14.4%.
On dividends, PepsiCo announced its 54th consecutive annual increase, with a 4% rise beginning June 2026. Its $5.75 payout is covered against earnings of $7.63 per share. Coca-Cola’s $2.08 dividend against earnings of $3.34 per share leaves more room, supported by free cash flow guidance of about $12.4 billion.
Coca-Cola trades at 26 times earnings, compared with 18 times for PepsiCo.