PepsiCo Reports Q3 2025 Earnings Results
PepsiCo has released its earnings report for the fiscal third quarter of 2025, showcasing mixed results that have garnered attention from analysts and investors alike. The company reported a quarterly performance that exceeded expectations despite ongoing challenges in the North American market.
Q3 2025 Earnings Overview
Key financial figures for the third quarter include:
- Earnings per Share: $2.29 adjusted, beating the expected $2.26.
- Revenue: $23.94 billion, surpassing expectations of $23.83 billion.
- Net Income: $2.6 billion, equivalent to $1.90 per share, a decline from $2.93 billion or $2.13 per share a year prior.
- Organic Revenue Growth: Increased by 1.3% after excluding acquisitions, divestitures, and foreign exchange impacts.
- Volume Decline: Overall volume for food and beverages decreased by 1% during the quarter.
Regional Performance
PepsiCo’s North American division faced notable challenges. Volume reports for specific segments were as follows:
- Frito-Lay and other food items experienced a volume decrease of 4%.
- North American beverages saw a decline of 3%, although there were indications of “improved momentum” reported by CEO Ramon Laguarta.
The company acknowledged the softer demand in its core market, prompting renewed investments in brand promotion and potential cost-cutting strategies.
Future Outlook
Despite the current challenges, PepsiCo has maintained its full-year forecasts. The company still expects:
- Core constant currency earnings per share to remain stable compared to the previous year.
- Organic revenue growth to reach a low single-digit percentage.
Leadership Changes
As part of its announcements, PepsiCo revealed that Chief Financial Officer Jamie Caulfield will retire. Steve Schmitt, currently CFO of Walmart U.S., will take over the role effective November 10, 2025. This transition marks a significant leadership change within the company.
Overall, PepsiCo’s Q3 2025 report reflects both achievements and areas for improvement as it navigates a challenging market landscape. The company’s strategy moving forward will likely focus on innovation and adaptation to changing consumer preferences.
