Pricing Log in Create free account
Sunday 11 October 2026 Export all PEP data to Excel Powerpack

PepsiCo, Inc.

PEP Consumer Defensive Beverages Non Alcoholic

PepsiCo, Inc.’s revenue for fiscal 2025 (year ended December 2025) was $93.9 billion, up 2.25% from fiscal 2024. In the quarter to September 2026, revenue grew 5.59%, EPS grew 137.0%, free cash flow grew 41.8% and total debt fell 3.30%, each against the same quarter a year earlier. Member of the S&P 500 and Nasdaq 100; dividend growth for twenty-five consecutive years, revenue growth for five.

125.97 2.37 −1.85%
Market cap
$175.2B
P/E
16.5×
Fwd P/E
17.5×
Dividend yield
4.61%
F-score
5/9
Altman Z
3.48
Beneish M
−2.54
Dividend safety
43/100
Overview Business Profile Financial Analysis Income Statement Balance Sheet Cash Flow Metrics & Ratios Filings 10-Q 10-K

PepsiCo, Inc. (PEP) Financial Analysis

Updated · Covers results through Q2 FY2026 · Sources · How this is made

Snapshot

Revenue was $93.9 billion in FY2025, compared with $91.9 billion in FY2024, while net income was $8.3 billion in FY2025, compared with $9.6 billion in FY2024. Operating income was $11.5 billion in FY2025, below $12.9 billion in FY2024.

In Q2 FY2026, revenue was $24.2 billion, gross profit was $13.1 billion, operating income was $4.0 billion and net income was $3.0 billion. Diluted EPS was $2.18 in Q2 FY2026, and free cash flow was $1.6 billion in Q2 FY2026. On a trailing basis, revenue was $96.9 billion in TTM to Q2 FY2026 and net income was $10.5 billion in TTM to Q2 FY2026.

Growth

Revenue increased 2.25% in FY2025 against FY2024, and its compound annual growth rate was 2.83% in FY2022–FY2025 and 5.94% in FY2020–FY2025. Diluted EPS declined −13.7% in FY2025 against FY2024; its compound annual growth rate was −2.23% in FY2022–FY2025 and 3.22% in FY2020–FY2025. Free cash flow increased 8.88% in FY2025 against FY2024, with compound annual growth of 11.9% in FY2022–FY2025 and 4.99% in FY2020–FY2025.

Revenue increased 6.40% in Q2 FY2026 against Q2 FY2025, diluted EPS increased 137.0% in Q2 FY2026 against Q2 FY2025, and free cash flow increased 41.8% in Q2 FY2026 against Q2 FY2025.

Profitability

Gross margin was 54.1% in FY2025, a change of −0.4 percentage points in FY2024–FY2025 and −0.7 percentage points in FY2020–FY2025. Operating margin was 12.2% in FY2025, down −1.8 percentage points in FY2024–FY2025 and −2.1 percentage points in FY2020–FY2025. Net margin was 8.83% in FY2025, down −1.6 percentage points in FY2024–FY2025 and −1.4 percentage points in FY2020–FY2025.

Return on equity was 42.6% in FY2025, return on assets was 7.97% in FY2025, and return on invested capital was 13.5% in FY2025. Each was lower in FY2025 than in FY2024. Operating margin was 16.6% in Q2 FY2026, versus 7.87% in Q2 FY2025.

Balance sheet

Total debt was $42.3 billion in FY2025, compared with $37.2 billion in FY2024, while net debt was $32.8 billion in FY2025, compared with $28.0 billion in FY2024. Cash and short-term investments were $9.5 billion in FY2025, and shareholders’ equity was $20.5 billion in FY2025. Working capital was −$4.8 billion in FY2025.

Net debt was $31.9 billion in Q2 FY2026, compared with $31.7 billion in Q1 FY2026 and $31.4 billion in Q2 FY2025. The current ratio was 0.9× in Q2 FY2026, and debt to equity was 1.9× in Q2 FY2026. Book value per share was $15.01 in FY2025.

Cash flow & capital return

Operating cash flow was $12.1 billion in FY2025, down −3.36% in FY2025 against FY2024. Capital expenditure was $3.9 billion in FY2025, while free cash flow was $8.2 billion in FY2025, up 8.88% in FY2025 against FY2024. Free cash flow represented 98.9% of net income in FY2025.

Dividends paid were $7.6 billion in FY2025, and net share repurchases were $903.0 million in FY2025. Capital returned to shareholders was $8.5 billion in FY2025 and $37.4 billion in FY2021–FY2025. Weighted average shares were 1.4 billion shares in FY2025; the share count changed −1.16% in FY2020–FY2025.

Valuation

Market capitalisation was $169.0 billion as of October 7, 2026. P/E was 16.2× as of October 7, 2026, below the five-year median of 23.9× and ten-year median of 24.7×, and below the industry median of 21.0× as of October 7, 2026. P/S was 1.7× as of October 7, 2026, below its five-year and ten-year medians of 2.5×, but higher than the industry median of 1.6×.

P/B was 7.6× as of October 7, 2026, below its five-year median of 12.8× and ten-year median of 13.1×, but higher than the industry median of 4.8×. EV/Sales was 2.1× as of October 7, 2026, below its own medians and above the industry median of 2.0×. EV/Cash flow was 38.4× as of October 7, 2026, above its own medians.

What changed since last quarter

Revenue rose 24.4% in Q2 FY2026 against Q1 FY2026 and 6.40% in Q2 FY2026 against Q2 FY2025. Diluted EPS rose 28.2% in Q2 FY2026 against Q1 FY2026 and 137.0% in Q2 FY2026 against Q2 FY2025. Gross margin changed −1.0 percentage point in Q2 FY2026 against Q1 FY2026 and −0.4 percentage points in Q2 FY2026 against Q2 FY2025, while operating margin changed 0.1 percentage points sequentially and 8.8 percentage points year over year.

Management attributes reported operating-profit growth in its 2026 results to productivity savings, effective net pricing, tariff refunds, acquisition and divestiture-related charges and credits, and commodity-derivative gains. Management also identifies operating-cost increases and higher advertising and marketing expenses as partial offsets. Free cash flow rose from −$460.0 million in Q1 FY2026 to $1.6 billion in Q2 FY2026; its percentage change is not meaningful because the earlier value was zero or negative.

Open questions

  • How much of recent revenue movement reflects pricing, volume, foreign exchange, and acquisition or divestiture effects across the company?
  • How recurring are the items that management cites as contributing to operating-profit changes?
  • How will input costs, tariffs, and advertising and marketing spending affect future margins?
  • What is driving the change in debt and net debt over time?

Sources

This page is for information only. It is not investment advice, a recommendation or an offer to buy or sell any security. Figures come from the sources listed above and may contain errors; verify against the company's filings.