Revenue growth remains highly volatile, ranging from a 1.8% contraction in 2025Q1 to an 8.5% expansion in 2026Q1, while operating margins have fluctuated significantly between 6.0% and 18.0% over the last ten quarters.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 95.45B | 93.92B | 91.85B | 91.47B | 86.39B | 79.47B | 70.37B | 67.16B | 64.66B | 63.52B | 62.8B | 63.06B | 66.68B | 66.42B | 65.49B | 66.5B | 57.84B | 43.23B | 43.25B | 39.47B | 35.14B | 32.56B | 29.26B | 26.97B | 25.11B | 23.51B | 25.48B | 25.09B | 22.35B | 20.92B | 20.34B |
| Revenue Growth % | 4.29% | 2.25% | 0.42% | 5.88% | 8.7% | 12.93% | 4.78% | 3.87% | 1.79% | 1.16% | -0.41% | -5.44% | 0.4% | 1.41% | -1.52% | 14.98% | 33.79% | -0.04% | 9.57% | 12.34% | 7.91% | 11.28% | 8.49% | 7.4% | 6.8% | -7.72% | 1.54% | 12.28% | 6.84% | 2.85% | 6.66% |
| Cost of Goods Sold | 43.85B | 43.07B | 41.74B | 41.88B | 40.58B | 37.08B | 31.8B | 30.13B | 29.38B | 28.8B | 28.22B | 28.73B | 31.24B | 31.24B | 31.29B | 31.59B | 26.57B | 20.1B | 20.35B | 18.04B | 15.76B | 14.18B | 12.67B | 12.38B | 11.5B | 10.75B | 10.23B | 10.33B | 8.32B | 7.62B | 7.58B |
| COGS % of Revenue | - | 45.85% | 45.45% | 45.79% | 46.97% | 46.65% | 45.18% | 44.87% | 45.44% | 45.33% | 44.94% | 45.56% | 46.85% | 47.04% | 47.78% | 47.51% | 45.95% | 46.49% | 47.05% | 45.7% | 44.86% | 43.54% | 43.31% | 45.9% | 45.78% | 45.72% | 40.13% | 41.15% | 37.22% | 36.42% | 37.3% |
| Gross Profit | 51.6B | 50.86B | 50.11B | 49.59B | 45.82B | 42.4B | 38.58B | 37.03B | 35.28B | 34.73B | 34.58B | 34.33B | 35.45B | 35.17B | 34.2B | 34.91B | 31.26B | 23.13B | 22.9B | 21.44B | 19.38B | 18.39B | 16.59B | 14.59B | 13.62B | 12.76B | 15.25B | 14.77B | 14.03B | 13.3B | 12.75B |
| Gross Margin % | 54.06% | 54.15% | 54.55% | 54.21% | 53.03% | 53.35% | 54.82% | 55.13% | 54.56% | 54.67% | 55.06% | 54.44% | 53.15% | 52.96% | 52.22% | 52.49% | 54.05% | 53.51% | 52.95% | 54.3% | 55.14% | 56.46% | 56.69% | 54.1% | 54.22% | 54.28% | 59.87% | 58.85% | 62.78% | 63.58% | 62.7% |
| Gross Profit Growth % | - | 1.49% | 1.05% | 8.24% | 8.06% | 9.91% | 4.18% | 4.96% | 1.59% | 0.44% | 0.73% | -3.16% | 0.78% | 2.84% | -2.03% | 11.67% | 35.14% | 1.02% | 6.83% | 10.64% | 5.38% | 10.85% | 13.67% | 7.18% | 6.68% | -16.33% | 3.29% | 5.25% | 5.5% | 4.29% | 7.6% |
| Operating Expenses | 37.48B | 37.37B | 37.22B | 37.6B | 34.3B | 31.24B | 28.5B | 26.74B | 25.17B | 24.45B | 24.77B | 25.97B | 25.86B | 25.47B | 25.09B | 25.28B | 22.93B | 15.09B | 15.94B | 14.27B | 12.87B | 12.46B | 11.33B | 9.81B | 9.32B | 9.13B | 11.44B | 11.28B | 11.16B | 10.35B | 10.14B |
| OpEx % of Revenue | - | 39.78% | 40.52% | 41.11% | 39.71% | 39.3% | 40.49% | 39.81% | 38.93% | 38.49% | 39.45% | 41.19% | 38.79% | 38.35% | 38.31% | 38.01% | 39.65% | 34.9% | 36.86% | 36.14% | 36.64% | 38.28% | 38.71% | 36.38% | 37.11% | 38.81% | 44.88% | 44.97% | 49.93% | 49.47% | 49.84% |
| Selling, General & Admin | 37.48B | 37.37B | 37.19B | 36.68B | 34.46B | 31.24B | 28.45B | 26.74B | 25.17B | 24.45B | 24.77B | 24.61B | 25.77B | 25.36B | 24.97B | 25.14B | 22.81B | 15.03B | 15.88B | 14.21B | 12.71B | 12.31B | 11.03B | 9.46B | 8.96B | 8.57B | 11.1B | 11.02B | 9.92B | 9.24B | 9.06B |
| SG&A % of Revenue | - | 39.78% | 40.49% | 40.1% | 39.89% | 39.3% | 40.43% | 39.81% | 38.93% | 38.49% | 39.45% | 39.03% | 38.65% | 38.18% | 38.13% | 37.81% | 39.44% | 34.76% | 36.71% | 35.99% | 36.18% | 37.82% | 37.7% | 35.07% | 35.67% | 36.47% | 43.58% | 43.91% | 44.41% | 44.18% | 44.56% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 0 | 33M | 927M | -155M | 0 | 42M | 0 | 0 | 0 | 0 | 1.36B | 92M | 110M | 119M | 133M | 117M | 63M | 64M | 58M | 162M | 150M | 297M | 351M | 362M | 552M | 331M | 266M | 1.23B | 1.11B | 1.07B |
| Operating Income | 14.12B | 13.49B | 12.89B | 11.99B | 11.51B | 11.16B | 10.08B | 10.29B | 10.11B | 10.28B | 9.8B | 8.35B | 9.58B | 9.71B | 9.11B | 9.63B | 8.33B | 8.04B | 6.96B | 7.17B | 6.5B | 5.92B | 5.26B | 4.78B | 4.29B | 3.64B | 3.82B | 3.48B | 2.87B | 2.95B | 2.62B |
| Operating Margin % | 14.79% | 14.36% | 14.03% | 13.1% | 13.33% | 14.04% | 14.32% | 15.32% | 15.64% | 16.18% | 15.61% | 13.25% | 14.37% | 14.61% | 13.91% | 14.48% | 14.41% | 18.61% | 16.09% | 18.16% | 18.5% | 18.19% | 17.97% | 17.73% | 17.1% | 15.46% | 14.98% | 13.88% | 12.85% | 14.11% | 12.86% |
| Operating Income Growth % | - | 4.69% | 7.52% | 4.12% | 3.14% | 10.73% | -2.05% | 1.79% | -1.62% | 4.81% | 17.37% | -12.82% | -1.28% | 6.51% | -5.41% | 15.61% | 3.58% | 15.59% | -2.94% | 10.27% | 9.79% | 12.61% | 10% | 11.32% | 18.12% | -4.77% | 9.62% | 21.27% | -2.71% | 12.84% | -2.1% |
| EBITDA | 18.37B | 17.67B | 16.7B | 15.5B | 14.79B | 14.38B | 13.11B | 13.13B | 12.51B | 12.64B | 12.17B | 10.77B | 12.21B | 12.37B | 11.8B | 12.37B | 10.66B | 9.68B | 8.5B | 8.6B | 7.91B | 7.23B | 6.52B | 6B | 5.41B | 4.72B | 4.91B | 4.64B | 4.11B | 4.06B | 3.69B |
| EBITDA Margin % | 19.25% | 18.81% | 18.18% | 16.95% | 17.12% | 18.09% | 18.62% | 19.56% | 19.35% | 19.91% | 19.38% | 17.08% | 18.3% | 18.62% | 18.02% | 18.6% | 18.43% | 22.39% | 19.66% | 21.78% | 22.51% | 22.2% | 22.29% | 22.25% | 21.53% | 20.07% | 19.27% | 18.49% | 18.37% | 19.4% | 18.14% |
| EBITDA Growth % | 10.49% | 5.79% | 7.73% | 4.81% | 2.89% | 9.7% | -0.22% | 5% | -1.08% | 3.89% | 13.03% | -11.77% | -1.31% | 4.8% | -4.6% | 16.05% | 10.13% | 13.84% | -1.09% | 8.7% | 9.38% | 10.84% | 8.68% | 11% | 14.6% | -3.93% | 5.86% | 12.98% | 1.18% | 10% | -0.78% |
| D&A (Non-Cash Add-back) | 4.25B | 4.18B | 3.81B | 3.52B | 3.28B | 3.21B | 3.03B | 2.84B | 2.4B | 2.37B | 2.37B | 2.42B | 2.63B | 2.66B | 2.69B | 2.74B | 2.33B | 1.64B | 1.54B | 1.43B | 1.41B | 1.31B | 1.26B | 1.22B | 1.11B | 1.08B | 1.09B | 1.16B | 1.23B | 1.11B | 1.07B |
| EBIT | 12.03B | 11.37B | 12.87B | 12.24B | 11.64B | 11.68B | 10.2B | 10.25B | 10.41B | 10.75B | 9.89B | 8.41B | 9.67B | 9.8B | 9.2B | 9.69B | 9.13B | 8.48B | 7.37B | 7.86B | 7.23B | 5.92B | 5.41B | 4.99B | 4.52B | 4.02B | 4B | 3.56B | 2.87B | 2.95B | 2.62B |
| Net Interest Income | -1.16B | -1.12B | -919M | -819M | -939M | -1.86B | -1.13B | -935M | -1.22B | -907M | -1.23B | -911M | -824M | -814M | -808M | -799M | -835M | -330M | -288M | -99M | -66M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 200M | 306M | 244M | 110M | 59M | 85M | 97M | 91M | 57M | 68M | 67M | 41M | 125M | 173M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 1.16B | 1.12B | 919M | 819M | 939M | 1.86B | 1.13B | 935M | 1.22B | 1.15B | 1.34B | 970M | 909M | 911M | 899M | 856M | 903M | 397M | 329M | 224M | 239M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -3.25B | -3.25B | -941M | -569M | -807M | -1.34B | -1.01B | -979M | -921M | -674M | -1.25B | -911M | -824M | -814M | -808M | -799M | -100M | 35M | 86M | 461M | 487M | 460M | 287M | 211M | 138M | 8M | -57M | 792M | -609M | -643M | -1.05B |
| Pretax Income | 10.87B | 10.24B | 11.95B | 11.42B | 10.71B | 9.82B | 9.07B | 9.31B | 9.19B | 9.6B | 8.55B | 7.44B | 8.76B | 8.89B | 8.3B | 8.83B | 8.23B | 8.08B | 7.04B | 7.63B | 6.99B | 6.38B | 5.55B | 4.99B | 4.43B | 3.64B | 3.76B | 4.28B | 2.26B | 2.31B | 1.57B |
| Pretax Margin % | 11.39% | 10.91% | 13.01% | 12.48% | 12.39% | 12.36% | 12.89% | 13.87% | 14.21% | 15.12% | 13.62% | 11.8% | 13.13% | 13.39% | 12.68% | 13.28% | 14.23% | 18.69% | 16.29% | 19.33% | 19.89% | 19.6% | 18.95% | 18.51% | 17.65% | 15.5% | 14.76% | 17.04% | 10.13% | 11.04% | 7.7% |
| Income Tax | 2.08B | 1.95B | 2.32B | 2.26B | 1.73B | 2.14B | 1.89B | 1.96B | -3.37B | 4.69B | 2.17B | 1.94B | 2.2B | 2.1B | 2.09B | 2.37B | 1.89B | 2.1B | 1.88B | 1.97B | 1.35B | 2.3B | 1.37B | 1.42B | 1.43B | 1.24B | 1.22B | 1.77B | 270M | 818M | 624M |
| Effective Tax Rate % | 19.15% | 19.03% | 19.42% | 19.81% | 16.13% | 21.81% | 20.88% | 21.04% | -36.67% | 48.89% | 25.42% | 26.08% | 25.11% | 23.66% | 25.17% | 26.85% | 23.01% | 25.99% | 26.67% | 25.86% | 19.27% | 36.1% | 24.74% | 28.53% | 32.33% | 34.14% | 32.39% | 41.4% | 11.93% | 35.43% | 39.85% |
| Net Income | 8.74B | 8.24B | 9.58B | 9.07B | 8.91B | 7.62B | 7.12B | 7.31B | 12.52B | 4.86B | 6.33B | 5.45B | 6.51B | 6.74B | 6.18B | 6.44B | 6.32B | 5.95B | 5.14B | 5.66B | 5.64B | 4.08B | 4.21B | 3.57B | 3B | 2.4B | 2.54B | 2.5B | 1.99B | 2.14B | 1.15B |
| Net Margin % | 9.16% | 8.77% | 10.43% | 9.92% | 10.31% | 9.59% | 10.12% | 10.89% | 19.35% | 7.65% | 10.08% | 8.65% | 9.77% | 10.15% | 9.43% | 9.69% | 10.93% | 13.75% | 11.89% | 14.33% | 16.06% | 12.52% | 14.39% | 13.23% | 11.95% | 10.21% | 9.98% | 9.98% | 8.92% | 10.24% | 5.65% |
| Net Income Growth % | -6.68% | -13.97% | 5.55% | 1.84% | 16.96% | 6.99% | -2.65% | -41.56% | 157.67% | -23.26% | 16.09% | -16.29% | -3.37% | 9.1% | -4.11% | 1.95% | 6.29% | 15.64% | -9.12% | 0.28% | 38.35% | -3.18% | 18.05% | 18.93% | 25% | -5.62% | 1.52% | 25.69% | -6.96% | 86.42% | -28.46% |
| Net Income (Continuing) | 8.79B | 8.29B | 9.63B | 9.15B | 8.98B | 7.68B | 7.17B | 7.35B | 12.56B | 4.91B | 6.38B | 5.5B | 6.56B | 6.79B | 6.21B | 6.46B | 6.34B | 5.98B | 5.17B | 5.66B | 5.64B | 4.08B | 4.17B | 3.57B | 3B | 2.4B | 2.54B | 2.5B | 1.99B | 1.49B | 942M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 38M | 0 | 0 | 0 | 0 | 0 | 0 | 651M | 207M |
| Minority Interest | 153M | 141M | 130M | 134M | 124M | 108M | 98M | 82M | 84M | 92M | 104M | 107M | 110M | 110M | 105M | 311M | 312M | 638M | 476M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 6.38 | 6.00 | 6.95 | 6.56 | 6.42 | 5.48 | 5.11 | 5.20 | 8.78 | 3.38 | 4.36 | 3.67 | 4.27 | 4.32 | 3.92 | 4.03 | 3.91 | 3.77 | 3.21 | 3.41 | 3.34 | 2.39 | 2.44 | 2.05 | 1.68 | 1.33 | 1.42 | 1.37 | 1.31 | 1.36 | 0.72 |
| EPS Growth % | -6.32% | -13.67% | 5.95% | 2.18% | 17.15% | 7.24% | -1.73% | -40.77% | 159.76% | -22.48% | 18.8% | -14.05% | -1.16% | 10.2% | -2.73% | 3.07% | 3.71% | 17.45% | -5.87% | 2.1% | 39.75% | -2.05% | 19.02% | 22.02% | 26.32% | -6.34% | 3.65% | 4.58% | -3.68% | 88.89% | -28% |
| EPS (Basic) | - | 6.03 | 6.98 | 6.59 | 6.46 | 5.51 | 5.14 | 5.23 | 8.84 | 3.42 | 4.39 | 3.71 | 4.31 | 4.37 | 3.96 | 4.12 | 3.97 | 3.80 | 3.26 | 3.48 | 3.42 | 2.43 | 2.47 | 2.07 | 1.69 | 1.35 | 1.45 | 1.40 | 1.35 | 1.40 | 0.73 |
| Diluted Shares Outstanding | 1.37B | 1.37B | 1.38B | 1.38B | 1.39B | 1.39B | 1.39B | 1.41B | 1.43B | 1.44B | 1.45B | 1.49B | 1.53B | 1.56B | 1.57B | 1.6B | 1.61B | 1.58B | 1.6B | 1.66B | 1.69B | 1.71B | 1.73B | 1.74B | 1.78B | 1.8B | 1.79B | 1.5B | 1.52B | 1.57B | 1.61B |
| Basic Shares Outstanding | 1.37B | 1.37B | 1.37B | 1.38B | 1.38B | 1.38B | 1.39B | 1.4B | 1.42B | 1.42B | 1.43B | 1.45B | 1.49B | 1.53B | 1.54B | 1.56B | 1.59B | 1.56B | 1.58B | 1.62B | 1.65B | 1.68B | 1.7B | 1.72B | 1.77B | 1.78B | 1.75B | 1.47B | 1.48B | 1.53B | 1.56B |
| Dividend Payout Ratio | - | 92.69% | 75.48% | 73.64% | 69.27% | 76.33% | 77.37% | 72.52% | 39.39% | 92.07% | 66.79% | 74.1% | 57.27% | 50.95% | 53.5% | 49% | 47.12% | 45.95% | 49.42% | 38.95% | 32.86% | 40.26% | 31.48% | 29.99% | 34.7% | 41.42% | 37.32% | 37.33% | 37.98% | 34.36% | 58.75% |
Volume elasticity and input costs
According to recent quarterly filings, PepsiCo's revenue growth has fluctuated significantly, ranging from a contraction of 1.8% in 2025Q1 to an 8.5% expansion by 2026Q1, suggesting that the company's reliance on price-led growth may be reaching a ceiling in its core North American markets.
The inconsistency in top-line performance indicates that the company is struggling to balance aggressive pricing strategies with volume retention. Investors should monitor whether the recent acceleration in 2026Q1 is sustainable or merely a reflection of temporary promotional timing rather than genuine organic demand.
As reported in financial statements, PepsiCo has maintained a relatively stable gross margin profile, averaging approximately 54% over the last ten quarters, which highlights the company's ability to pass through commodity cost increases to consumers despite a challenging inflationary environment for raw materials.
This margin stability suggests that the brand equity of the Frito-Lay and beverage portfolios remains robust enough to withstand price sensitivity. However, the slight compression observed in late 2024 and 2025 suggests that the company may be nearing the limit of its pricing power.
Based on the provided income statement data, operating margins have shown significant volatility, dropping to as low as 6.0% in 2023Q4 and peaking at 18.0% in 2024Q2, which implies that the company's cost structure is not scaling efficiently with revenue growth in the current cycle.
The wide variance in operating margins suggests that SG&A expenses are not being managed with the necessary discipline to protect profitability during periods of revenue stagnation. This lack of consistent operating leverage warrants further investigation into the company's fixed-cost absorption and distribution efficiency.
Data from recent income statements reveals that EPS growth has been highly erratic, swinging from a 154.1% increase in 2023Q4 to a 58.7% decline in 2025Q2, indicating that net income is heavily influenced by non-operating items or significant quarterly fluctuations in tax and expense recognition.
The disconnect between revenue trends and EPS volatility suggests that investors should look past headline earnings to understand the underlying operational health. The persistent stock-based compensation expense, while relatively small, continues to act as a minor but consistent drag on shareholder value.
Analysis of the reported figures suggests that the company's reliance on price-mix realization may be masking underlying volume erosion, as evidenced by the inconsistent revenue growth and the significant margin compression observed during the latter half of the 2024 and 2025 fiscal periods.
Short-term margin protection through price hikes may be creating a long-term vulnerability to private-label competition and changing consumer habits. If volume continues to decline, the company may find it increasingly difficult to maintain its current profitability levels without sacrificing market share.
Quick answers to the most common questions about buying PEP stock.
For fiscal year 2025, PepsiCo, Inc. (PEP) reported total revenue of $93.92B. This represents a 361.8% increase compared to $20.34B in 1996.
PepsiCo, Inc. (PEP) is profitable, generating $8.24B in net income for the fiscal year ending 2025 with a net profit margin of 8.8%.
PepsiCo, Inc. (PEP) reported an operating income of $13.49B, resulting in an operating profit margin of 14.4%. This margin reflects the operational efficiency of the business before interest and taxes.
PepsiCo, Inc. (PEP) generated $50.86B in gross profit for the year, representing a gross profit margin of 54.1%. This demonstrates the company's core pricing power and production efficiency.