PepsiCo (NASDAQ: PEP) just released its earnings results for the second quarter of 2025. Despite a modest increase in revenue and falling profits, the stock rose by 6% in the following trading session as the company reiterated its outlook and offered more details of a turnaround plan, including a plan to cut costs.

Still, the much more critical question for investors is whether the company can grow its stock more sustainably as costs rise in a low-growth environment. Knowing this, investors need to take a closer look at the state of PepsiCo and its financials before drawing conclusions about the stock.

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Source Fool.com