PepsiCo reports mixed Q3 2025 results as international growth offsets North American declines
PepsiCo (PEP) reported a solid third-quarter performance that beat Wall Street expectations on earnings and revenue, even as the company navigates ongoing softness in its home market. The beverage and snack giant posted adjusted earnings of $2.29 per share and revenue of $23.94 billion, surpassing analysts’ consensus on both metrics, according to a survey by LSEG. The results highlight the ongoing contrast between international strength and domestic headwinds as PepsiCo works to maintain momentum in a challenging environment.
Key figures: earnings, sales, and margin context
For the quarter, PepsiCo earned $2.29 per share on an adjusted basis, ahead of the $2.26 per-share estimate from analysts. Reported net income attributable to the company was $2.6 billion, or $1.90 per share, down from $2.93 billion, or $2.13 per share, a year earlier. The year-ago period benefited from one-time items that are excluded in the adjusted figure. Net sales rose 2.6% to $23.94 billion, with organic revenue up about 1.3% when excluding acquisitions, divestitures and foreign exchange effects.
Volume trends: international strength vs. domestic softness
PepsiCo continues to see softer demand for its products in several markets, with overall worldwide volume for both food and beverages falling about 1% in the quarter. The company’s efforts to offset volume declines include pricing actions, brand investments, and efficiency programs. The North America region remains its focal point for recovery as competition and shifting consumer preferences pressures profitability.
Performance by business segment
Within North America, Pepsi Foods North America—which includes iconic brands like Doritos, Quaker Oats, and Pearl Milling—saw volume decline around 4% in the third quarter. The North American beverage unit also reported a 3% volume drop, though CEO Ramon Laguarta signaled improving momentum in the beverage side of the business as the company continues to refine its go-to-market strategy and product lineup.
Outlook and strategic positioning
PepsiCo reiterated its full-year outlook, aiming for core constant-currency earnings per share to be roughly flat versus the prior year and organic revenue to grow in the low single digits. The guidance reflects the company’s balance between sustaining pricing discipline, investing in core brands, and pursuing cost efficiencies. Investors will closely watch how macro trends, currency movements, and ongoing product innovation influence the trajectory into the next fiscal year.
What investors should watch next
- Domestic momentum: Any signs that North American volume declines are stabilizing or reversing will be critical to a broader earnings upgrade.
- International growth: Continued strength in international markets could help offset U.S. softness and support margin expansion.
- Cost discipline: Ongoing efficiency measures and potential restructurings may influence the company’s operating margin.
Overall, PepsiCo’s Q3 2025 results suggest a company navigating a bifurcated market: healthy international demand and strategic pricing helping to offset softer volume in the U.S. The earnings beat underscores the resilience of the company’s diversified portfolio, even as it remains focused on reinvestment and efficiency to sustain growth.
