As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q2. Today, we are looking at beverages, alcohol, and tobacco stocks, starting with Keurig Dr Pepper (NASDAQ: KDP).

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 13 beverages, alcohol, and tobacco stocks we track reported a satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 1% while next quarter’s revenue guidance was 2.2% above.

While some beverages, alcohol, and tobacco stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 3.8% since the latest earnings results.

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 $7.31 billion, up 75.6% year on year. This print exceeded analysts’ expectations by 0.9%. Despite the top-line beat, it was still a mixed quarter for the company with a beat of analysts’ EPS estimates but full-year revenue guidance meeting analysts’ expectations.

Keurig Dr Pepper achieved the fastest revenue growth in the group. Unsurprisingly, the stock is up 3.4% since reporting and currently trades at $31.81.

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

Best Q2: Vita Coco (NASDAQ: COCO)

Founded in 2004 followed by a 2021 IPO, The Vita Coco Company (NASDAQ: COCO) offers coconut water products that are a natural way to quench thirst.

Vita Coco reported revenues of $216.2 million, up 28.1% year on year, outperforming analysts’ expectations by 3%. The business had a stunning quarter with a beat of analysts’ EPS and gross margin estimates.

Vita Coco pulled off the highest full-year guidance raise among its peers. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 19.7% since reporting. It currently trades at $59.80.

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

Weakest 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 $817.9 million, up 10.6% year on year, falling short of analysts’ expectations by 6.2%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA and EPS estimates.

Celsius delivered the weakest performance against analyst estimates of the whole group. Interestingly, the stock is up 7.8% since the results and currently trades at $31.42.

Read our full analysis of Celsius’s results here.

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 $24.18 billion, up 6.4% year on year. This result beat analysts’ expectations by 0.8%. Aside from that, it was a mixed quarter as it recorded gross margin in line with analysts’ estimates.

The stock is down 1.5% since reporting and currently trades at $140.38.

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

Philip Morris (NYSE: PM)

Founded in 1847, Philip Morris International (NYSE: PM) manufactures and sells a wide range of tobacco and nicotine-containing products, including cigarettes, heated tobacco products, and oral nicotine pouches.

Philip Morris reported revenues of $11.19 billion, up 10.4% year on year. This print surpassed analysts’ expectations by 5.5%. It was a very strong quarter as it also logged a beat of analysts’ EPS estimates and gross margin in line with analysts’ estimates.

Philip Morris scored the biggest analyst estimate beat among its peers. The stock is flat since reporting and currently trades at $187.95.

Read our full, actionable report on Philip Morris here, it’s free.

Market Update

Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership.

Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products.

By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals.

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