09:01 AM EDT, 07/17/2025 (MT Newswires) -- PepsiCo ( PEP ) reported an unexpected year-over-year increase in its fiscal second-quarter revenue on Thursday, while the beverage and snacks company provided an improved full-year earnings outlook amid easing foreign-exchange headwinds.

The company now anticipates core earnings to decline by 1.5% on a per-share basis in fiscal 2025, compared with its previous projections for a 3% decrease. Foreign exchange is expected to negatively impact core EPS growth by about 1.5 percentage points, based on current rates, versus the prior guidance for a headwind of about 3 percentage points. The current consensus on FactSet is for non-GAAP EPS of $7.88.

"Our core (US dollar) EPS outlook has improved versus our previous expectations as foreign exchange headwinds have moderated, due to the weakening of the US dollar," Chief Executive Ramon Laguarta said in a statement. The stock was up 4.4% in premarket activity.

PepsiCo ( PEP ) continues to expect organic revenue to rise by a low single digit for the ongoing fiscal year.

The company continues to see incremental supply chain costs for the remainder of the year, mainly related to the sourcing of certain global inputs and tariff impacts, and is carrying out mitigation efforts to partially reduce these expenses, Laguarta and Chief Financial Officer Jamie Caulfield said in prepared remarks. "We will remain agile and adjust our mitigation plans, when possible, given the dynamic nature of ongoing trade relations," according to the executives.

For the three-month period ended June 14, the company's core EPS fell to $2.12 from $2.28 the year before, but topped the Street's view for $2.03. Revenue increased to $22.73 billion from $22.5 billion, defying the average analyst estimate on FactSet for a decrease to $22.27 billion.

Overall net pricing had a positive impact of 4% on the topline, while consolidated organic volume slipped 1.5%. Volume fell 1.5% in the company's convenient food business and was flat in the beverages segment.

"We're encouraged by the acceleration in our net revenue growth versus the previous quarter with our businesses effectively navigating through a challenging environment," Laguarta said in the earnings release. "Our international business momentum continued, while our North America businesses improved their execution and competitiveness in key subcategories and channels."

PepsiCo's ( PEP ) North America foods business, which includes Frito-Lay and Quaker Foods, ticked up 1% to $6.48 billion. Sales in the North American beverages unit edged down to $6.8 billion from $6.81 billion. International beverages saw revenue improve 3% to $1.37 billion.