PepsiCo Q3 profit beats estimates, says CFO to retire

Overview

• PepsiCo Q3 2025 net revenue grew 2.6%, reflecting resilience in international business

• Core EPS for Q3 2025 beat analyst expectations, reaching $2.29

• Co names Steve Schmitt CFO replacing Jamie Caulfield

• Company affirms 2025 guidance, expects low-single-digit organic revenue growth

Outlook

• PepsiCo expects low-single-digit organic revenue growth for 2025

• Company anticipates core constant currency EPS to be flat with prior year

• PepsiCo revises foreign exchange impact to a 0.5 percentage point headwind

Result Drivers

• INTERNATIONAL RESILIENCE - PepsiCo attributes net revenue growth to strong international business performance

• COST OPTIMIZATION - Co aims to aggressively optimize cost structure to fund growth activities

• PORTFOLIO RESHAPING - Co continues to reshape its portfolio to offer good value to consumers

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 7 "strong buy" or "buy", 16 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the non-alcoholic beverages peer group is "buy."

• Wall Street's median 12-month price target for PepsiCo Inc is $155.00, about 10.4% above its October 8 closing price of $138.84

• The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 16 three months ago

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