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PepsiCo Beats Revenue Estimates Despite North America Slowdown

PepsiCo topped Wall Street’s second-quarter revenue expectations on Thursday, helped by resilient demand for zero-sugar sodas in several of its core markets.

Revenue Growth Outpaces Estimates

The beverage and snacks company reported quarterly revenue of $24.18 billion, up 6.4% from a year earlier and ahead of analysts’ estimate of $23.95 billion, according to LSEG. Core earnings per share rose to $2.20 from $2.12 a year earlier.

Inflation Continues To Weigh On North America

PepsiCo said pressure on household budgets continued to weigh on its North American business. Organic sales in the company’s North America foods division fell about 2% in the quarter as consumers traded down, bought less or shifted to lower-priced alternatives.

The company has responded by lowering prices on brands including Lay’s and Doritos in North America while expanding smaller pack sizes and lower-cost options.

“Results were tempered in the quarter as US food and beverage category performance moderated with consumer budgets tightening due to rising inflationary pressures,” CEO Ramon Laguarta said in prepared remarks.

Full-Year Outlook Unchanged

PepsiCo maintained its fiscal 2026 guidance, continuing to expect organic revenue growth of 2% to 4% and core constant-currency earnings per share growth of 4% to 6%. Shares rose about 1% in premarket trading.

A New Twitter-Inspired Social Network Is Taking Shape

A new social network called Twitter.now is entering the market, with a founding team that includes former Twitter trademark counsel Stephen Coates. The service is being developed by startup Operation Bluebird.

As Ars Technica reported, X sued the company last year and asked a Delaware judge to block the launch. Operation Bluebird argued in a petition that X had abandoned trademarks including “Twitter” and “Tweet.”

Coates has said the project is not an attempt to recreate the original Twitter. In a LinkedIn post, he described the platform as a new public space focused on trust, transparency and user choice.

AI System To Rate Posts

Twitter.now is currently being tested, with early access priced at $20. Its main feature is VERA, an AI system designed to evaluate posts, verify claims and provide sources and context.

Posts receive a trust score, with users eventually able to set a minimum score to filter their feeds. The company says this approach will give people more control over what they see instead of leaving those decisions entirely to an algorithm.

Moderation Remains A Challenge

Scaling moderation will be one of the platform’s biggest tests. Social networks have repeatedly struggled with content moderation as their communities grow, and newer platforms such as Bluesky have faced similar criticism.

Operation Bluebird says VERA will form the basis of its moderation and verification system. A second version is already planned, with expanded tools that would let users set a specific trust threshold for the posts appearing in their feeds.

For now, Twitter.now remains in an early testing phase, combining the familiarity of the Twitter name with an AI-driven approach to evaluating online information.

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