PepsiCo’s Q2 earnings surge highlights growth potential with strong pricing power and efficiency-driven tech investments. See more on PEP stock here.

PepsiCo’s stock was having its best day in five years after earnings beat expectations in contrast to a profit miss in the previous quarter.

PepsiCo reported better-than-expected quarterly results on Thursday, driven by steady demand for its sodas and snacks in the U.S. and other major markets, including Europe. The Gatorade owner sounded a more upbeat tone in its comments this quarter,

PepsiCo's 4.2% dividend yield and Q2 earnings boost may lead to a short-lived rebound. Read here for key insights on PEP stock for income-focused investors.

PepsiCo reported better-than-expected earnings and revenue in the second quarter despite sluggish North American sales. Sales of Frito-Lay and other snacks fell 1% in North America during the April-June period,

PepsiCo logged higher revenue in the second-quarter despite a small drop in volumes.

PepsiCo said on Thursday that it was expecting a smaller drop in annual core profit, helped by a rebound in demand for its energy drinks and healthier soda brands in the United States as well as benefits from favorable foreign exchange rates.

PepsiCo jumped 6.6% after delivering revenue and profit that topped Wall Street’s expectations. The drink and snack giant stood by its financial forecasts given in April, which projected lower full-year profit than previous forecasts due to increased costs from tariffs and a pullback in consumer spending.

The food giant said its Frito-Lay snack division planned to make a line of Cheetos and Doritos with no artificial colors or flavors, as demand falters.

In the past, PEP stock has demonstrated a significant trend of positive one-day returns after earnings reports.