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PepsiCo Stock Rises After Earnings Beat. The Company Is Getting a New CFO.

Oct 08, 2025 16:00:00 -0400 by Evie Liu | #Consumer #Earnings Report

PepsiCo has seen falling sales of its food and drink products. (Michael M. Santiago/Getty Images)

Key Points

PepsiCo stock climbed after the snacks and beverage company reported slightly better-than-expected quarterly results and announced a new chief financial officer early Thursday.

Third-quarter adjusted earnings came in at $2.29 a share on sales of $23.9 billion. Analysts polled by FactSet had expected per-share earnings of $2.26 on sales of $23.8 billion.

Separately, PepsiCo named Steve Schmitt CFO effective Nov. 10. Incumbent Jamie Caulfield has decided to retire next year, the company said in a statement.

Shares were up 1.6% to $141 in premarket trading. Before earnings, shares were down 6% this year.

This is breaking news. Read a preview of PepsiCo below and check back for more analysis soon.

PepsiCo is in the middle of a turnaround that has yet to yield much in the way of results. The company is set to report fiscal third-quarter earnings on Thursday before the market opens. Investors will be watching for any signs of improving sales trends in the North American market as well as updates from management about its engagement with activist investor Elliott Investment Management.

For the three months ended in September, Wall Street analysts polled by FactSet expect the snack and beverage company to report earnings of $2.26 per share, a five-cent decline from a year ago. Net sales are expected to increase 2.2% from the year-ago period, to $23.84 billion.

In the three months prior, PepsiCo sales increased 1% from a year ago following three consecutive quarters of decline. But much of the growth was driven by strong results in the international business, which were further boosted by a weak dollar.

In North America, PepsiCo continues to struggle with weak sales. Organic sales for its North America food unit—which sells Doritos, Lay’s, and many other snacks—declined 2% from a year ago, while beverage sales volume shrank 2%.

Management has lowered its guidance for 2025’s adjusted earnings per share, noting that potential tariffs later this year could drive up freight and packaging costs and consequently squeeze profit margins.

To regain momentum, the company has been pushing smaller packages for lower entry price, leaning into “better-for-you” products to ride the wellness trend, launching new marketing campaigns, and integrating its food and beverage businesses for cost savings.

In August, PepsiCo increased its stake in energy-drink maker Celsius Holdings , while the latter acquired PepsiCo’s Rockstar Energy brand in the U.S. and Canada. The expanded partnership has further aligned the two companies strategically for the long term.

PepsiCo is Celsius’ major distributor in the U.S. market. As part of the deal, Celsius’ newly acquired brand Alani Nu will also move into the PepsiCo distribution system, a move that could help it reach the shelves at more retailers and boost sales.

Still, PepsiCo stock remains depressed. Shares are down 6% year to date, trading at 18 times expected earnings for the next 12 months. That’s cheaper than Coca-Cola’s 23 times and the S&P 500 Consumer Staples Sector Index ’s 20 times.

Last month, activist investor Elliott said that it had taken a $4 billion stake in PepsiCo, pressing for changes at the snack-and-beverage giant. The hedge fund is betting that its plans could improve profits while boosting the stock’s valuation, which could lift shares by more than 50%.

Elliott wants PepsiCo to cut its manufacturing and distribution overhead by outsourcing low-margin, asset-heavy bottling operations, and to exit underperforming categories—such as pasta, cereals, and syrups—to focus more on its core brands—such as Pepsi, Mountain Dew, and Gatorade.

PepsiCo says it maintains “an active and productive dialogue” with shareholders and will review Elliott’s proposals.

Write to Evie Liu at evie.liu@barrons.com