PepsiCo Q3 Earnings & Revenues Beat Estimates, Sales Up Y/Y

Core Insights - PepsiCo, Inc. reported strong third-quarter 2025 results with revenues and earnings per share (EPS) exceeding estimates, although EPS showed a year-over-year decline [1][10] - The company demonstrated accelerated net revenue growth compared to the previous quarter, indicating resilience in a challenging environment [1][2] Financial Performance - Core EPS for the third quarter was $2.29, surpassing the Zacks Consensus Estimate of $2.27, but declined 0.9% year over year [3] - Reported net revenues reached $23.94 billion, a 2.6% increase year over year, beating the Zacks Consensus Estimate of $23.87 billion [4] - The reported gross profit decreased by 0.8% year over year to $12.8 billion, with a core gross profit decline of 0.4% to $12.9 million [5][7] - Operating income was reported at $3.6 billion, down 7.8% year over year, while core operating income fell 0.9% to $4.2 billion [7] Segment Performance - Revenue growth was observed across most operating segments, with notable increases in North America and international markets, except for the IB Franchise segment [9][11] - Organic revenues improved in several segments, including a 2% increase for PBNA and 5.5% for EMEA, while PFNA and IB Franchise saw declines [11] Financial Stability - As of the end of Q3 2025, PepsiCo had cash and cash equivalents of $8.1 billion and long-term debt of $44.1 billion [12] - Net cash provided by operating activities was $5.5 million, down from $6.2 billion in the previous year [12] Future Outlook - For 2025, PepsiCo aims for low-single-digit organic revenue growth and steady core EPS performance, with a focus on innovation and cost optimization [13][14] - The company anticipates currency headwinds to impact revenues and core EPS by 0.5 percentage points in 2025 [15] - PepsiCo plans to return $8.6 billion to shareholders in 2025, including $7.6 billion in dividends and $1 billion in share repurchases [16]