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Investing.com -- PepsiCo reported better-than-expected third-quarter results on Wednesday, as the beverage and snack giant’s revenue growth accelerated despite volume challenges in its food business.
The company posted adjusted earnings per share of $2.29, exceeding analyst estimates of $2.26. Revenue came in at $23.94 billion, slightly above the consensus forecast of $23.86 billion and representing a 2.6% increase from the same period last year.
Organic revenue, which excludes currency effects and acquisitions, grew 1.3% YoY. PepsiCo shares rose 1.9% at the open following the earnings release.
"Our reported net revenue growth accelerated and reflects the resilience of our international business, improved momentum within North America Beverages and the benefits of our portfolio reshaping actions," said Chairman and CEO Ramon Laguarta.
The company’s performance varied across segments. PepsiCo Beverages North America saw 2% revenue growth despite a 3% volume decline, while Europe, Middle East and Africa delivered the strongest performance with 9% reported revenue growth. However, convenient foods volumes declined 1% globally, with North American food volumes down 4%.
PepsiCo maintained its full-year 2025 outlook, continuing to expect low-single-digit organic revenue growth with core constant currency EPS approximately even with the prior year.
The company improved its core EPS guidance, now projecting a 0.5% decline versus the previously expected 1.5% decline, due to more favorable foreign exchange translation rates.
"As we look ahead, our top priorities are to accelerate growth and aggressively optimize our cost structure," Laguarta added. "We are introducing a strong pipeline of innovation to accelerate portfolio transformation, continuously sharpening our price pack architecture to provide good value to consumers, and right sizing our entire cost base."
PepsiCo also announced on Thursday that it has appointed Steve Schmitt as its new Executive Vice President and Chief Financial Officer, effective November 10, 2025.
Jefferies analysts said in a note that the "announcement of new talent from outside the organization, and with a respected track record should be viewed favorably for this turnaround story."
Meanwhile, Morgan Stanley said there were "puts and takes in today’s release." However, the bank highlighted the "FY EPS raise vs. a low bar both for PEP and CPG peers, and the addition of a talented new CFO," which it views as important."
"Although Q3’s result itself was weak and low quality and unlikely to change the debate on PEP’s stock," stated Morgan Stanley.