In a surprising twist of financial resilience, PepsiCo has announced a revenue surge that exceeded expectations in the third quarter, even while grappling with a dip in demand for its snacks and beverages across North America.

During the July to September period, PepsiCo’s revenue climbed by 2.6%, reaching .94 billion. This figure surpassed the .84 billion projection put forth by Wall Street analysts, as compiled by FactSet.

Despite this overall success, the company faced challenges in its North American market, where sales volumes for its Frito-Lay snacks and other food products saw a 2% decline, and beverage sales dropped by 3%. However, PepsiCo experienced growth in sales volumes in Latin America and Asia, balancing the regional discrepancies.

Earlier this year, PepsiCo acknowledged that inflationary pressures and shifting consumer behaviors have tempered the demand for its iconic product lines. To address these challenges, the company has been proactive in expanding the distribution of its more affordable offerings, such as Chester’s and Santitas, and has accelerated efforts to eliminate artificial colors from its products.

Despite these efforts, net income saw an 11% decline, settling at .6 billion. Yet, when adjusted for one-time items, PepsiCo reported earnings of .29 per share, once again outpacing the analysts’ prediction of .26 per share.

The company, based in Purchase, New York, has been under some pressure from Elliott Investment Management, an activist investor that recently took a $4 billion stake in PepsiCo.

In a letter sent to PepsiCo’s board last month, Elliott said the company has been hurt by loss of market share in its North American beverage business and slowing growth and weaker profits in its North American food business.

Elliott wants PepsiCo to slim down its food and beverage portfolio so it can reinvest in core brands like Mountain Dew or new products like protein snacks. It also wants the company to consider refranchising its North American bottlers, an action that its rival Coca-Cola took in 2017.

Shares of PepsiCo Inc. are up about 1% before the opening bell.

Also on Thursday, PepsiCo named Walmart executive Steve Schmitt as its new chief financial officer. Schmitt was the CFO for Walmart’s U.S. division.

Current PepsiCo CFO Jamie Caulfield plans to retire on Nov. 10 after more than 30 years with the company. He will remain at PepsiCo until May 15 in an advisory role.