08:59 AM EDT, 10/09/2025 (MT Newswires) -- PepsiCo ( PEP ) issued an improved full-year earnings outlook on Thursday amid easing foreign-exchange headwinds, while the beverage and snacks giant reported better-than-expected fiscal third-quarter results.

The company now anticipates core earnings to decline by 0.5% on a per-share basis in fiscal 2025, compared with its previous projections for a 1.5% decrease. The current consensus on FactSet is for non-GAAP EPS of $8.03. Foreign exchange is expected to negatively impact core EPS growth by about 0.5 percentage points, based on current rates, versus the prior guidance for a headwind of about 1.5 percentage points.

"Our full-year core (US dollar) EPS outlook has improved due to a more favorable outlook on foreign exchange translation rates for the balance of this year," Chief Executive Ramon Laguarta said in a statement. PepsiCo's ( PEP ) shares edged up 1% in the most recent premarket activity.

The company continues to expect a low-single-digit rise in organic revenue for the ongoing fiscal year.

"As we look ahead to the balance of this year and beyond, our top priorities are to accelerate growth and aggressively optimize our cost structure," according to Laguarta. "We are introducing a strong pipeline of innovation to accelerate portfolio transformation, continuously sharpening our price pack architecture to provide good value to consumers, and right sizing our entire cost base to help fund our activities."

For the three-month period ended Sept. 6, PepsiCo's ( PEP ) core EPS moved down to $2.29 from $2.31 the year before, but topped the Street's view for $2.26. Revenue increased to $23.94 billion from $23.32 billion, topping the average analyst estimate on FactSet for $23.84 billion. On an organic basis, revenue improved 1.3%.

Overall net pricing had a positive impact of 4% on the topline, while consolidated organic volume dropped 3%. Volume ticked down 1% each in the company's convenient foods and beverages segments.

"Our reported net revenue growth accelerated and reflects the resilience of our international business, improved momentum within North America beverages and the benefits of our portfolio reshaping actions," Laguarta said.

Revenue in PepsiCo's ( PEP ) North America foods business, which includes Frito-Lay and Quaker Foods, inched down to $6.53 billion from $6.54 billion in the prior-year period. Sales in the North American beverages unit nudged higher to $7.33 billion from $7.18 billion. International beverages revenue remained flat year over year at $1.29 billion.

In a separate statement, the company said it appointed Steve Schmitt as chief financial officer, effective Nov. 10. Schmitt, who currently serves as CFO of Walmart ( WMT ) US, will succeed Jamie Caulfield, who will retire from the group and remain in an advisory role until May 15.