01—Abstract
Summary
Summary of the 10-Q filed October 9, 2025. Cited figures are marked; the original filing is the authoritative source.
PepsiCo Inc. reported its financial results for the 12 and 36 weeks ended September 6, 2025.
For the 12-week period, net revenue increased by 3% to $23.9 billiona, but operating profit saw a significant decrease of 8% to $3.6 billion, largely attributed to higher operating costs, increased commodity expenses (including tariffs), and acquisition-related charges. Diluted EPS for the quarter also declined 11% to $1.90. Over the 36-week period, net revenue grew 1% to $64.6 billion, while operating profit fell 25% to $7.9 billion.
This substantial operating profit decline was significantly impacted by impairment charges related to the Rockstar brand and increased commodity costs. Diluted EPS for the year-to-date period decreased 29% to $4.15b.
The company made strategic acquisitions, including poppi and Siete, which impacted its financial performance and balance sheet. Despite these challenges, PepsiCo continues to return capital to shareholders through dividends and share repurchases.
02—Key points
Key Highlights
- Net revenue for the 12 weeks ended September 6, 2025, increased 3% to $23.9 billion, while the 36-week net revenue grew 1% to $64.6 billion.
- Operating profit for the 12-week period decreased 8% to $3.6 billion, and for the 36-week period, it declined 25% to $7.9 billion.
- Diluted earnings per share (EPS) for the 12-week period decreased 11% to $1.90, and for the 36-week period, it fell 29% to $4.15.
- Significant impairment charges of $1.9 billion were recorded in the 36-week period, primarily related to the Rockstar brand.
- The company completed acquisitions of poppi and Siete during the period, contributing to increased assets and goodwill.
- PepsiCo returned approximately $6.4 billion to shareholders through dividends and share repurchases in the first 36 weeks of the fiscal year.
- The company's balance sheet shows an increase in total assets to $106.6 billion, largely due to higher receivables, property, plant and equipment, goodwill, and other assets.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2025, Pepsico Inc kept $0.11.
- Revenue$23.94B100.0%
- Cost of revenue−$11.11B46.4%
- Gross profit$12.82B53.6%
- Operating costs−$9.26B38.7%
- Operating income$3.57B14.9%
- Interest, other & tax−$966.0M4.0%
- Net income$2.60B10.9%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed October 9, 2025Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Revenue | $23.94B$23.32B | +2.7% |
| Cost of Revenue | $11.11B$10.40B | +6.9% |
| Gross Profit | $12.82B$12.92B | −0.8% |
| SG&A Expenses | $9.12B$9.03B | +1.1% |
| Operating Income | $3.57B$3.87B | −7.8% |
| Interest Expense | $264.00M$219.00M | +20.5% |
| Net Income | $2.60B$2.93B | −11.2% |
| EPS (Basic) | $1.90$2.13 | −10.8% |
| EPS (Diluted) | $1.90$2.13 | −10.8% |
| Shares Outstanding (Basic) | 1.37B1.37B | −0.3% |
| Shares Outstanding (Diluted) | 1.37B1.38B | −0.4% |
05—Questions
Frequently Asked Questions
What was the primary driver for the decrease in operating profit for the 36-week period?
The significant decrease in operating profit for the 36-week period was primarily driven by impairment charges related to the Rockstar brand, increased operating costs, a decline in organic volume, and higher commodity costs.
How did the acquisitions of poppi and Siete impact the company's financial statements?
The acquisitions of poppi and Siete contributed to an increase in goodwill and other intangible assets on the balance sheet. For the 12-week period, acquisition and divestiture-related charges related to poppi impacted operating profit and margins. The cash outflow for these acquisitions was substantial in the investing activities section of the cash flow statement.
What is the company's strategy for returning capital to shareholders?
PepsiCo continues to return capital to shareholders through dividends and share repurchases. For the first 36 weeks of the fiscal year, the company returned approximately $6.4 billion to shareholders, consisting of dividends and share repurchases. The company expects to return a total of approximately $8.6 billion to shareholders in 2025.
Are there any significant risks or challenges highlighted in the report?
The report highlights several risks, including volatile geopolitical conditions, commodity price fluctuations, supply chain disruptions, international operational risks (particularly in Russia), tariffs, and potential future taxes and regulations on products and packaging. The company also experienced impairment charges on brands, indicating potential challenges in future performance expectations.
06—Continue