PepsiCo reported third-quarter net revenue of $23.94 billion, up about 2.6%, and adjusted earnings per share of $2.29, both ahead of Wall Street forecasts, driven largely by strong international demand for sodas and snacks. The company’s North American volumes were soft, but pricing discipline and growth overseas helped offset weakness at home.

The beverage and snack giant also announced a major leadership change: Steve Schmitt, currently CFO of Walmart U.S., will become PepsiCo’s new chief financial officer effective November 10, 2025, succeeding Jamie Caulfield, who will retire after more than three decades with the company. Caulfield will transition into an advisory role through mid-2026 to support the handover.

PepsiCo described the Q3 as “challenging” yet resilient, noting a 24.2% decline in wholesale deliveries vs. a year ago. The company highlighted its efforts to revamp brands like Lay’s and Tostitos—removing synthetic ingredients and introducing smaller pack sizes—to appeal to evolving consumer preferences.

Under pressure from activist investor Elliott Management, PepsiCo is also re-evaluating its portfolio, with talk of trimming underperforming brands and considering a spin-off of its bottling operations. The CFO shift is seen as part of a renewed push to sharpen margins and operational discipline.

PepsiCo reaffirmed its 2025 guidance, projecting low-single-digit organic revenue growth and flat core EPS, despite ongoing headwinds in North America. The company’s strong global footprint and the incoming CFO’s cost and operations expertise may help it navigate shifting consumer trends and margin pressure ahead.

Source: Reuters