PURCHASE, N.Y., October 9, 2025: PepsiCo Inc. reported third-quarter earnings that exceeded Wall Street estimates, with strong international performance helping to offset weaker demand in the North American market. The global food and beverage giant posted net revenue of $23.94 billion for the quarter ended September 7, up 2.7 percent from a year earlier and slightly ahead of analyst expectations of $23.83 billion. Net income for the quarter fell to $2.6 billion, or $1.88 per share, compared with $2.7 billion, or $1.95 per share, in the same period last year.
On an adjusted basis, earnings came in at $2.29 per share, surpassing the consensus forecast of $2.26. The results mark continued resilience in PepsiCo’s international markets, where increased demand and tailored product strategies contributed to revenue gains. Organic revenue grew 6 percent in the Europe, Middle East, and Africa region, supported by consumer demand for beverages and snacks across several key markets. Latin America and Asia-Pacific regions also reported solid performance, with volume increases and positive pricing effects. International operations now contribute approximately 40 percent of PepsiCo’s overall revenue, underscoring the company’s geographic diversification.
In contrast, the North American business faced ongoing pressure. PepsiCo Beverages North America posted a 3 percent decline in volume, while Frito-Lay North America saw a 2 percent decrease. Despite raising prices across its portfolio, the company experienced softer demand from consumers in the region, particularly in the snack and carbonated beverage categories. PepsiCo said it would continue to focus on product innovation and packaging strategies to improve appeal in various markets. It also noted that shifting consumer purchasing habits and increased promotional activity in North America impacted volumes in the quarter.
PepsiCo confirms leadership change amid earnings release
The company reiterated that it expects continued volatility in consumer demand across its developed markets. The earnings report came alongside a significant leadership change. PepsiCo appointed Steve Schmitt as its new chief financial officer, effective November 10. Schmitt, currently executive vice president and CFO of Walmart U.S., will succeed Jamie Caulfield, who is retiring after more than three decades with the company. The leadership transition follows recent organizational changes aimed at aligning financial management with the company’s global priorities.
The company reaffirmed its full-year guidance, maintaining expectations for at least 4 percent organic revenue growth and core constant currency earnings per share to be flat compared to the previous year. PepsiCo also confirmed its commitment to returning approximately $8.2 billion to shareholders through dividends and share repurchases in 2025. While gross profit margins remained under pressure, PepsiCo said it has made progress on cost-efficiency initiatives and supply chain improvements. The company also announced plans to streamline its North American product portfolio in the fourth quarter, including the discontinuation of certain underperforming snack lines.
Pricing actions offset volume drops in North American sales
PepsiCo shares rose more than 1.8 percent in early trading following the earnings release. The company’s stock has gained over 5 percent year to date, supported by strong international growth and disciplined pricing strategies. PepsiCo is the maker of well-known global brands such as Pepsi, Gatorade, Lay’s, and Quaker. It operates in more than 200 countries and territories and continues to invest in product innovation, sustainability, and emerging markets as part of its long-term growth strategy.
The third-quarter results reflect the company’s ability to navigate diverse market conditions and consumer dynamics, with strong international momentum helping to balance regional disparities in performance. This underscores PepsiCo’s operational resilience across segments and geographies, particularly as it addresses shifting demand patterns, cost pressures, and evolving consumer preferences. The steady performance in key global markets highlights the company’s adaptive strategy in sustaining growth across product categories and regions. – By Content Syndication Services.