Let’s dig into the relative performance of PepsiCo (NASDAQ: PEP) and its peers as we unravel the now-completed Q2 beverages, alcohol, and tobacco earnings season.

These companies' performance is influenced by brand strength, marketing strategies, and shifts in consumer preferences. Changing consumption patterns are particularly relevant and can be seen in the rise of cannabis, craft beer, and vaping or the steady decline of soda and cigarettes. Companies that spend on innovation to meet consumers where they are with regards to trends can reap huge demand benefits while those who ignore trends can see stagnant volumes. Finally, with the advent of the social media, the cost of starting a brand from scratch is much lower, meaning that new entrants can chip away at the market shares of established players.

The 15 beverages, alcohol, and tobacco stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 2.1% while next quarter’s revenue guidance was 1.8% below.

Thankfully, share prices of the companies have been resilient as they are up 5.1% on average since the latest earnings results.

PepsiCo (NASDAQ: PEP)

With a history that goes back more than a century, PepsiCo (NASDAQ: PEP) is a household name in food and beverages today and best known for its flagship soda.

PepsiCo reported revenues of $22.73 billion, flat year on year. This print exceeded analysts’ expectations by 1.7%. Overall, it was a strong quarter for the company with an impressive beat of analysts’ EBITDA estimates and a decent beat of analysts’ organic revenue estimates.

Interestingly, the stock is up 7% since reporting and currently trades at $144.83.

Is now the time to buy PepsiCo? Access our full analysis of the earnings results here, it’s free.

Best Q2: Celsius (NASDAQ: CELH)

With its proprietary MetaPlus formula as the basis for key products, Celsius (NASDAQ: CELH) offers energy drinks that feature natural ingredients to help in fitness and weight management.

Celsius reported revenues of $739.3 million, up 83.9% year on year, outperforming analysts’ expectations by 14%. The business had an incredible quarter with a solid beat of analysts’ EPS and EBITDA estimates.

Celsius scored the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 25.3% since reporting. It currently trades at $53.72.

Is now the time to buy Celsius? Access our full analysis of the earnings results here, it’s free.

Weakest Q2: Tilray (NASDAQ: TLRY)

Founded in 2013, Tilray Brands (NASDAQ: TLRY) engages in cannabis research, cultivation, and distribution, offering a range of medical and recreational cannabis products, hemp-based foods, and alcoholic beverages.

Tilray reported revenues of $224.5 million, down 2.3% year on year, falling short of analysts’ expectations by 2%. It was a slower quarter as it posted a significant miss of analysts’ gross margin estimates and a significant miss of analysts’ EPS estimates.

Tilray delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 50.8% since the results and currently trades at $1.05.

Read our full analysis of Tilray’s results here.

Constellation Brands (NYSE: STZ)

With a presence in more than 100 countries, Constellation Brands (NYSE: STZ) is a globally renowned producer and marketer of beer, wine, and spirits.

Constellation Brands reported revenues of $2.52 billion, down 5.5% year on year. This result missed analysts’ expectations by 1.5%. It was a slower quarter as it also recorded a miss of analysts’ EBITDA estimates and a miss of analysts’ gross margin estimates.

The stock is up 1.3% since reporting and currently trades at $168.72.

Read our full, actionable report on Constellation Brands here, it’s free.

Keurig Dr Pepper (NASDAQ: KDP)

Born out of a 2018 merger between Keurig Green Mountain and Dr Pepper Snapple, Keurig Dr Pepper (NASDAQ: KDP) is a consumer staples powerhouse boasting a portfolio of beverages including sodas, coffees, and juices.

Keurig Dr Pepper reported revenues of $4.16 billion, up 6.1% year on year. This number beat analysts’ expectations by 0.9%. More broadly, it was a satisfactory quarter as it also produced an impressive beat of analysts’ EBITDA estimates but a miss of analysts’ gross margin estimates.

The stock is up 3.4% since reporting and currently trades at $34.62.

Read our full, actionable report on Keurig Dr Pepper here, it’s free.

Market Update

Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.

Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.