PepsiCo, Inc. (NYSE:PEP) released its third quarter earnings report before opening bell this morning, posting core earnings of $1.36 per share on $17.22 billion in revenue. Analysts had been expecting the soda maker to post earnings of $1.29 per share on $17.13 billion in revenue.

PepsiCo, Inc. Beats Earnings Estimates

Reported earnings per share were $1.32.

Breaking down PepsiCo’s earnings report

The company said its core earnings per share rose 10%, while reported earnings rose 7%. Organic revenue increased 3.1%, while reported net revenue increased 2%. Pepsi’s core gross margin increased by 45 basis points, while reported gross margin rose 55 basis points.

PepsiCo saw an 8% increase in organic revenue from developing and emerging markets. Reported net revenue from developing and emerging markets increased 3%.

“We delivered good third quarter results in the face of an ongoing challenged macroeconomic environment driven by increasing volatility in the emerging markets and continued sluggish consumer demand in developed markets,” said PepsiCo Chairman and CEO Indra Nooyi in a statement.

Frito-Lay North America saw a 3% increase in organic and reported net revenue, while Latin American Foods saw a 9% increase in organic revenue and a 6% increase in reported net revenue. Quaker Foods North America saw a 2% decline in organic revenue and a 3% decline in net revenue.

PepsiCo Americas Beverages saw flat organic and reported net revenue. Non-carbonated beverage volume increased slightly in North America, but carbonated soft drinks saw a 1.5% volume decline. In Europe, Pepsi reported a 1% growth in organic revenue and a 1% decline in reported net revenue. In Asia, the Middle East and Africa, the company recorded an 11% increase in both organic and reported net revenue due to an 11% volume increase in snacks and 3% volume increase in beverages.

PepsiCo raises guidance

Pepsi also said this morning that it is increasing its full year core constant currency earnings per share growth guidance from 8% to 9%. The company also said it’s on track to save $1 billion in productivity costs this year.

It plans to return $8.7 billion to shareholders this year through a combination of $5 billion in share buybacks and $3.7 billion in dividends.