PepsiCo (PEP) Q3 2025 Earnings
How Did PEP Stock React to Q3 2025 Earnings?
S&P 500 over the same 30 days: −0.32%.
Did PEP Beat Earnings? Q3 2025 Results
Yes. PepsiCo reported Q3 2025 earnings of $2.29 a share on Oct 8, 2025, beating the $2.26 consensus estimate by 1.3%. Revenue was $23.9B against a $23.8B estimate.
PepsiCo delivered a modest but clean beat in the third quarter of fiscal 2025, posting core EPS of $2.29 against a consensus estimate of $2.26 — a 1.33% positive surprise — while revenue of $23.94 billion edged past the $23.85 billion estimate and grew 2.6% year-over-year. The headline numbers masked a more complicated picture beneath the surface: organic revenue grew just 1.3%, and GAAP EPS fell 11% to $1.90 as the quarter absorbed $133 million in Rockstar brand impairment charges, $142 million in restructuring costs, and $221 million in acquisition-related items. North American foods remained a drag, with PepsiCo Foods North America seeing organic revenue decline 3%, while the beverage segment held up better on pricing discipline despite volume softness. International markets, particularly EMEA and Latin America, provided meaningful resilience. For investors focused on income, PepsiCo's <a href="https://247wallst.com/investing/2025/12/30/the-dividend-aristocrat-with-53-margins-just-widened-the-gap-on-the-frozen-dividend-competitor/">53% gross margin profile</a> remains a key anchor, with the company projecting roughly $8.6 billion in shareholder returns this year and reaffirming low-single-digit organic revenue growth guidance for fiscal 2025.
- Resilience of international business driving reported revenue growth acceleration
- Improved momentum within North America Beverages
- Benefits of portfolio reshaping actions
- Effective net pricing of 4 percentage points across total company
- EMEA organic revenue growth of 5.5% driven by effective net pricing of 6 percentage points
- Favorable foreign exchange translation contributing 0.5 percentage points to net revenue
“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.”
PepsiCo CEO, on the earnings call
What Was PepsiCo's Outlook in Q3 2025?
For fiscal 2025, PepsiCo continues to expect low-single-digit organic revenue growth, core constant currency EPS approximately even with prior year ($8.16), and a core annual effective tax rate of approximately 20%. The company now expects foreign exchange translation headwind of approximately 0.5 percentage points on reported net revenue and core EPS growth (improved from 1.5 percentage points previously), implying a 0.5% decline in core EPS in 2025 versus the prior expectation of a 1.5% decline. Total cash returns to shareholders are expected at approximately $8.6 billion, comprised of $7.6 billion in dividends and $1.0 billion in share repurchases.
PEP YoY Financials
| Metric | Q3 2025 | Q3 2024 | Year over year |
|---|---|---|---|
| Revenue | $23.9B | $23.3B | +2.7% |
| Gross Profit | $12.8B | $13.0B | −1.3% |
| Operating Income | $3.6B | $4.2B | −14.9% |
| Net Income | $2.6B | $2.9B | −11.2% |
PEP Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.