PepsiCo, Inc. (PEP) Income Statement

30Y historyFree accessUpdated daily

Revenue growth decelerated from an 8.5% peak in 2026Q1 to 5.6% in 2026Q3 on stable 54.4% gross margins, though recurring Q4 operating margin plunges to 8.1% (2024Q4) and 12.1% (2025Q4) alongside SG&A growth of ~12% outpacing gross profit growth of 9.5% suggest negative incremental operating leverage and volatile EPS growth ranging from -58.7% to +137%.

Annual statement

PEP Income Statement

PepsiCo, Inc. (PEP) annual income statement — 30-year revenue, gross profit & net income history

Annual Quarterly

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	98.24B	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 %	6.36%	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	45.02B	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	53.22B	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 %	54.17%	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	38.16B	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	38.16B	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	15.05B	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 %	15.32%	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	19.49B	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 %	19.84%	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 %	19.95%	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)	4.44B	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	14.59B	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	-3.16B	-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	3.16B	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	-1.33B	-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	13.73B	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 %	13.97%	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	2.76B	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 %	20.1%	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	10.93B	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 %	11.13%	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 %	51.32%	-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)	10.97B	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	195M	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)	8.00	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 %	51.33%	-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	1.36B	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%

Key Metrics

Growth RegimeExpanding

ProfitabilityModerate

Balance SheetMixed

Cash FlowStable

Top Statement Risk

Volatile earnings and Q4 margin compression

Verified Source

Metrics are mathematically derived from official filings.

SEC 10-K (2026Q3)

Revenue Inflects from Contraction to Expansion

PepsiCo's revenue growth has inflected sharply from -1.8% in early 2025 to a peak of 8.5% in 2026Q1, though sequential deceleration to 5.6% in 2026Q3 suggests the pricing-driven recovery may be maturing. According to reported quarterly statements, absolute revenue reached $25.3B in the latest period.

The swing from three consecutive quarters of negative growth in mid-2024 to consistent mid-single-digit expansion through 2026 appears to reflect aggressive price/mix actions rather than volume recovery, given the simultaneous gross margin compression in Q4 periods. The deceleration from 8.5% to 5.6% over two quarters warrants monitoring, as it may indicate pricing elasticity limits are being tested. Management's decision to skip formal guidance at the October 2026 earnings report reinforces the view that near-term trajectory visibility is limited.

Gross Stability Masks Q4 Operating Erosion

Gross margins have held within a tight 53–55% band across the ten-quarter window, but operating margin has exhibited pronounced Q4 seasonality, plunging to 8.1% in 2024Q4 and 12.1% in 2025Q4. Based on recent SEC filings, this recurring fourth-quarter compression reflects elevated promotional intensity during holiday periods.

The structural gap between gross margin stability and operating margin volatility suggests PepsiCo's cost-of-goods exposure to agricultural commodities is well-hedged, but SG&A deployment becomes significantly less efficient in Q4. The 2025Q4 operating margin of 12.1% improved meaningfully from the prior year's 8.1%, which may indicate better promotional discipline, though it remains far below the 16–17% levels achieved in non-Q4 quarters. Relative to Coca-Cola's 28.7% operating margin, PepsiCo's consolidated DSD model imposes a persistent structural overhead burden.

SG&A Growth Outpaces Gross Profit Expansion

SG&A outlays rose approximately 12% from $8.5B in 2024Q2 to $9.5B in 2026Q3 while gross profit grew only 9.5% over the same period, implying negative incremental operating leverage. As reported in financial statements, the SG&A-to-gross-profit ratio has remained elevated near 69%, suggesting overhead efficiency has not structurally improved.

While the SG&A-to-revenue ratio has improved modestly in recent quarters (37.6% in 2026Q3 versus 37.8% in 2024Q2), the absolute dollar growth in overhead appears to be absorbing the benefits of pricing actions. This dynamic constrains the conversion of gross profit into operating income and may reflect continued investment in the capital-intensive DSD distribution network. Investors should monitor whether the Q1–Q3 2026 SG&A discipline (sub-39% of revenue) can be sustained into the seasonally heavy Q4 period.

Q4 2024 Trough Anchors Subsequent Recovery

The fourth quarter of 2024 marked a decisive operational trough, with operating margin collapsing to 8.1% and net margin falling to 5.5%, the weakest readings across the entire ten-quarter series. According to recent SEC filings, this dislocation appears to have catalyzed subsequent pricing and cost actions that restored profitability through 2025–2026.

The 2024Q4 EPS of $1.11 represented a stark departure from the $2.13–$2.23 range seen in normal operating quarters, suggesting significant one-time charges or margin-reset investments that depressed reported results. The recovery trajectory from this trough—operating margin climbing to 16.9% by 2026Q3—indicates the reset was followed by successful revenue management actions. However, the durability of this recovery depends on whether the underlying drivers were structural efficiency improvements or temporarily favorable commodity inputs.

EPS Volatility Undermines Earnings Predictability

Quarterly EPS growth has swung from -58.7% in 2025Q2 to +137% in 2026Q2, a range that is highly unusual for a mega-cap consumer staples name and suggests significant non-operating distortions. As reported in financial statements, net margins have fluctuated between 5.5% and 13.7% over the same window, complicating any linear earnings trajectory.

The extreme EPS growth dispersion—oscillating between deep contraction and triple-digit expansion—points to non-operating items, tax rate variability, or restructuring charges that distort the underlying earnings signal. The 2025Q2 net income of $1.3B against $22.7B of revenue (5.6% net margin) versus the prior year's $3.1B (13.7%) suggests a material below-the-line charge that warrants scrutiny. Combined with the absence of formal guidance, this volatility should lead analysts to discount headline EPS growth and focus instead on operating income trends, which show a more consistent—if modest—recovery trajectory.

PEP — Frequently Asked Questions

Quick answers to the most common questions about buying PEP stock.

What was PepsiCo, Inc.'s (PEP) revenue in 2025?

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.

Is PepsiCo, Inc. (PEP) profitable?

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%.

What is PepsiCo, Inc.'s operating profit margin?

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.

What is PepsiCo, Inc.'s gross profit and gross margin?

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.