PepsiCo Q3: Snacks segment grows 2.5%, net revenue rises to $23.9 billion
PepsiCo's net revenue rose 2.6% year-on-year to $23.94 billion, while operating profit slipped to $3.57 billion on a quarter-on-quarter basis.
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Food and beverages major PepsiCo reported a 2.5% organic revenue growth in its snacks business for the third quarter of 2025. However, its international beverages franchise segment—which manages bottling and distribution of PepsiCo’s beverage brands outside North America—declined by 1% in the September quarter.
The company’s net revenue rose 2.6% year-on-year to $23.94 billion, while operating profit slipped to $3.57 billion on a quarter-on-quarter basis. PepsiCo is offering smaller pack sizes as consumers look for affordable options, a move that helped drive volume growth in some Asian markets this year. The company's international business accounts for about 40% of its revenue.
Chairman and CEO Ramon Laguarta said the company remains focused on accelerating growth and optimizing its cost structure through innovation, sharper price-pack architecture, and portfolio transformation.
“For fiscal 2025, we continue to expect to deliver low single-digit organic revenue growth, with core constant currency EPS approximately flat compared to the prior year,” Laguarta added.
The PepsiCo CEO said the company would "aggressively reduce costs" in the snacks category in the US, with a plan that includes closing two plants and cutting nearly 15% of its product lines during the fourth quarter.
