The company, whose brands include Frito-Lay, Gatorade and Tropicana, is among the many U.S companies taking a hit as the dollar strengthens.
PepsiCo said it earned $1.48 billion, or 94 cents per share. That's down from $1.89 billion, or $1.17 per share, in the same period last year.
Excluding one-time items, PepsiCo said it earned $1.12 per share. Analysts polled by FactSet expected $1.09 per share.
Revenue slipped to $16.5 billion, from $16.8 billion, which the company said was primarily the result of refranchising its beverage businesses in China and Mexico.
PepsiCo is based in Purchase, N.Y.