Looking back on beverages, alcohol, and tobacco stocks’ Q2 earnings, we examine this quarter’s best and worst performers, including Zevia (NYSE: ZVIA) and its peers.

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 3.5% since the latest earnings results.

Zevia (NYSE: ZVIA)

With a primary focus on soda but also a presence in energy drinks and teas, Zevia (NYSE: ZVIA) is a better-for-you beverage company.

Zevia reported revenues of $45 million, up 1.1% year on year. This print exceeded analysts’ expectations by 1.8%. Overall, it was a strong quarter for the company with EBITDA guidance for next quarter exceeding analysts’ expectations.

Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 12.8% since reporting and currently trades at $1.50.

Is now the time to buy Zevia? 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 delivered the highest full-year guidance raise of the whole group. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 16.4% since reporting. It currently trades at $62.22.

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 among its peers. As expected, the stock is down 5.8% since the results and currently trades at $27.45.

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 surpassed analysts’ expectations by 0.8%. Taking a step back, it was a mixed quarter as it logged gross margin in line with analysts’ estimates.

The stock is down 2.3% since reporting and currently trades at $139.24.

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

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 $2.43 billion, down 3.3% year on year. This number beat analysts’ expectations by 1.6%. Taking a step back, it was a satisfactory quarter as it also produced a solid beat of analysts’ organic revenue estimates but full-year revenue guidance slightly missing analysts’ expectations.

Constellation Brands had the weakest full-year guidance update in the group. The stock is down 2.4% since reporting and currently trades at $135.75.

Read our full, actionable report on Constellation Brands 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 Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.