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PepsiCo (PEP) Q3 2025 earnings results (third quarter 2025)
10-Q filed Oct 9, 2025
PepsiCo (PEP) reported revenue of $23.9B for the third quarter 2025 (Q3 2025), +3% from a year earlier and +5% from the quarter before. Operating margin was 14.9%, net earnings $2.6B (10.9% of revenue).
PepsiCo, Q3 2025: revenue $23.9B (+3% year over year), operating margin 14.9%, net earnings $2.6B, operating cash flow $4.5B. The chart follows the revenue to costs, profit and cash.
| Q3 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $23.9B | +5% | +3% |
| Gross profit | $12.8B | +3% | -0.8% |
| Operating profit | $3.6B | +99% | -8% |
| Net earnings | $2.6B | +105% | -11% |
| Operating cash flow | $4.5B | — | -9% |
| Free cash flow | $3.5B | — | -7% |
What changed
Revenue was $23.9B in Q3 2025, up 3% year over year and up 5% from the previous quarter.
Gross margin was 53.6%, down 1.8 points from a year earlier. Operating profit was $3.6B, a 14.9% margin (down 1.7 points year over year). Operating profit fell $0.30B even though revenue rose $0.62B versus a year earlier, so costs grew faster than sales. Operating expenses grew 2% against revenue growth of 3%. Net earnings were $2.6B, down 11% year over year. The effective tax rate was 21.4%.
Operating cash flow was $4.5B (down 9% year over year), 171% of net earnings. Non-cash charges added back $0.82B of depreciation and amortization and $0.08B of share-based compensation. Working capital and other items added $1.0B. Capital expenditures of $1.0B left free cash flow of $3.5B.
Questions
What was PepsiCo's revenue in the third quarter 2025?
PepsiCo (PEP) reported revenue of $23.9B for the third quarter 2025 (Q3 2025), +3% from a year earlier and +5% from the quarter before.
Was PepsiCo profitable in the third quarter 2025?
Operating profit was $3.6B (14.9% of revenue) and net earnings $2.6B.
Source: PepsiCo 10-Q on SEC EDGAR.