PepsiCo reported Q3 earnings and revenue exceeding analysts’ expectations, with international growth offsetting a decline in North America. The company’s net income was $2.6 billion, or $1.90 per share, down from $2.93 billion, or $2.13 per share, a year earlier. Pepsi’s net sales rose 2.6% to $23.94 billion.

Despite softer demand, Pepsi is investing in new snack offerings like Stacy’s pita chips and Quaker rice cakes. The company is focusing on healthier options with products like Doritos Protein, as consumers shift towards protein-rich foods. Pepsi is also eliminating artificial colors and flavors in Lay’s, Doritos, and Cheetos snacks.

Pepsi’s North American food segment saw a 4% decline in volume, prompting investments in cost-cutting measures and innovative products. The company plans to use more olive and avocado oils in snacks to cater to health-conscious consumers. Pepsi is also making multipacks and single-serving snacks more affordable to attract price-conscious shoppers.

Pepsi’s North American beverage unit experienced a 3% decline in volume, but the company noted improved momentum. The namesake soda showed growth in both volume and revenue while new acquisition Poppi saw retail sales increase by over 50%. In September, Pepsi divested Rockstar Energy to Celsius and Elliott Investment Management unveiled a $4 billion stake in the company.

Pepsi reaffirmed its full-year outlook, with core earnings per share expected to remain stable and organic revenue projected to grow by a low single-digit percentage. CFO Jamie Caulfield plans to retire, with Walmart U.S. CFO Steve Schmitt set to replace him on Nov. 10.

Read more at CNBC: PepsiCo (PEP) Q3 2025 earnings