PepsiCo (PEP) Q1 2025 earnings

PepsiCo on Thursday reported mixed quarterly results as its international sales offset weaker demand in North America.

The food and beverage giant also cut its forecast for core constant currency earnings per share, citing new tariffs, economic volatility and a more cautious consumer.

“As we look ahead, we expect more volatility and uncertainty, particularly related to global trade developments, which we expect will increase our supply chain costs,” CEO Ramon Laguarta said in a statement. “At the same time, consumer conditions in many markets remain subdued and similarly have an uncertain outlook.”

Shares of the company fell 2% in premarket trading.

Here’s what PepsiCo reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG:

• Earnings per share: $1.48 adjusted vs. $1.49 expected
• Revenue: $17.92 billion vs. $17.77 billion expected

Pepsi reported first-quarter net income attributable to the company of $1.83 billion, or $1.33 per share, down from $2.04 billion, or $1.48 per share, a year earlier.

Excluding restructuring charges, acquisition costs and other items, the company earned $1.48 per share.

Net sales dropped 1.8% to $17.92 billion. Organic revenue, which strips out acquisitions, divestitures and foreign currency, rose 1.2% in the quarter.

Pepsi’s worldwide volume fell 3% for its convenient foods unit and was flat for its drinks. The metric strips out pricing and foreign exchange changes.

Laguarta said the company is “taking actions” to improve its North American performance. Volume for its domestic food business fell 1%, while its North American beverage unit saw volume decline 3%.

For the full year, Pepsi now expects its core constant currency earnings per share to be roughly unchanged from the prior year, down from its previous forecast projecting mid-single digit growth.

The company reiterated its outlook for a low-single digit increase in organic revenue.

This story is developing. Please check back for updates.