PEP's Margins Under Pressure: Will Productivity Play Deliver Relief?

Key Takeaways PepsiCo posted nearly 3% net revenue growth in Q3 2025, led by strength in international markets.Higher supply chain costs and tariffs dragged margins despite pricing and cost optimization efforts.PepsiCo's cost-cutting, automation and AI initiatives aim to rebuild profitability and efficiency.PepsiCo, Inc. (PEP) entered the back half of 2025 navigating a challenging cost landscape, but with renewed confidence in its productivity initiatives. In third-quarter 2025, the company delivered nearly ...