Pepsico Inc Financials
Financial Health Signals
Based on FY2025 annual data. Scores normalized against common benchmarks. How we calculate these scores
Pepsico Inc has an operating margin of 12.2%, meaning the company retains $12 of operating profit per $100 of revenue. This results in a moderate score of 61/100, indicating healthy but not exceptional operating efficiency. This is down from 14.0% the prior year.
Pepsico Inc's revenue grew a modest 2.3% year-over-year to $93.9B. This slow but positive growth earns a score of 35/100.
Pepsico Inc has a moderate D/E ratio of 2.07. This balance of debt and equity financing earns a leverage score of 34/100.
Pepsico Inc's current ratio of 0.85 means current assets barely cover short-term liabilities. This tight liquidity results in a low score of 14/100, which could limit financial flexibility.
Pepsico Inc has a free cash flow margin of 8.2%, earning a moderate score of 41/100. The company generates positive cash flow after capital investments, but with room for improvement.
Pepsico Inc earns a strong 40.4% return on equity (ROE), meaning it generates $40 of profit for every $100 of shareholders' equity. This efficient capital use earns a returns score of 100/100. This is down from 53.1% the prior year.
Pepsico Inc scores 3.69, well above the 2.99 safe threshold. This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.
Pepsico Inc passes 5 of 9 financial strength tests. 3 of 4 profitability signals pass, 2 of 3 leverage/liquidity signals pass, neither operating efficiency signal passes.
For every $1 of reported earnings, Pepsico Inc generates $1.47 in operating cash flow ($12.1B OCF vs $8.2B net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.
Pepsico Inc earns $10.3 in operating income for every $1 of interest expense ($11.5B vs $1.1B). This wide margin provides strong safety for debt servicing, even if earnings decline temporarily.
This page shows Pepsico Inc (PEP) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 19 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Key Financial Metrics
Pepsico Inc generated $93.9B in revenue in fiscal year 2025. This represents an increase of 2.3% from the prior year.
Pepsico Inc's EBITDA was $14.9B in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents a decrease of 6.8% from the prior year.
Pepsico Inc generated $7.7B in free cash flow in fiscal year 2025, representing cash available after capex. This represents an increase of 6.7% from the prior year.
Pepsico Inc reported $8.2B in net income in fiscal year 2025. This represents a decrease of 14.0% from the prior year.
Pepsico Inc held $9.2B in cash against $42.3B in long-term debt as of fiscal year 2025.
Pepsico Inc paid $5.62 per share in dividends in fiscal year 2025. This represents an increase of 5.5% from the prior year.
Pepsico Inc had 1.37B shares outstanding in fiscal year 2025. This represents a decrease of 0.4% from the prior year.
Pepsico Inc's gross margin was 54.1% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is down 0.4 percentage points from the prior year.
Pepsico Inc's operating margin was 12.2% in fiscal year 2025, reflecting core business profitability. This is down 1.8 percentage points from the prior year.
Pepsico Inc's net profit margin was 8.8% in fiscal year 2025, showing the share of revenue converted to profit. This is down 1.7 percentage points from the prior year.
Pepsico Inc's ROE was 40.4% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is down 12.7 percentage points from the prior year.
Pepsico Inc invested $839.0M in research and development in fiscal year 2025. This represents an increase of 3.2% from the prior year.
Pepsico Inc spent $1.0B on share buybacks in fiscal year 2025, returning capital to shareholders by reducing shares outstanding. This represents an increase of 0.0% from the prior year.
Pepsico Inc invested $4.4B in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents a decrease of 17.0% from the prior year.
PEP Income Statement
| Metric | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 | Q1'24 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $29.3B+22.6% | $23.9B+5.3% | $22.7B+26.8% | $17.9B-35.5% | $27.8B+19.1% | $23.3B+3.6% | $22.5B+23.3% | $18.3B |
| Cost of Revenue | $13.7B+23.5% | $11.1B+7.9% | $10.3B+30.0% | $7.9B-39.9% | $13.2B+26.8% | $10.4B+4.8% | $9.9B+20.3% | $8.2B |
| Gross Profit | $15.6B+21.8% | $12.8B+3.2% | $12.4B+24.3% | $10.0B-31.6% | $14.6B+13.0% | $12.9B+2.7% | $12.6B+25.8% | $10.0B |
| R&D Expenses | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A Expenses | $12.1B+32.2% | $9.1B+4.0% | $8.8B+18.4% | $7.4B-40.0% | $12.3B+36.7% | $9.0B+5.8% | $8.5B+17.1% | $7.3B |
| Operating Income | $3.6B-0.3% | $3.6B+99.5% | $1.8B-30.7% | $2.6B+14.8% | $2.3B-41.9% | $3.9B-4.3% | $4.0B+49.0% | $2.7B |
| Interest Expense | $333.0M+26.1% | $264.0M+1.5% | $260.0M-1.5% | $264.0M0.0% | $264.0M+20.5% | $219.0M-6.4% | $234.0M+15.8% | $202.0M |
| Income Tax | $445.0M-37.6% | $713.0M+144.2% | $292.0M-41.5% | $499.0M+81.5% | $275.0M-63.3% | $749.0M-3.5% | $776.0M+49.2% | $520.0M |
| Net Income | $2.5B-2.4% | $2.6B+106.1% | $1.3B-31.1% | $1.8B+20.4% | $1.5B-48.0% | $2.9B-5.0% | $3.1B+51.0% | $2.0B |
| EPS (Diluted) | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
PEP Balance Sheet
| Metric | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 | Q1'24 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $107.4B+0.8% | $106.6B+1.2% | $105.3B+3.5% | $101.7B+2.3% | $99.5B-1.0% | $100.5B+1.0% | $99.5B-0.5% | $100.0B |
| Current Assets | $27.9B-2.7% | $28.7B+1.8% | $28.2B+7.3% | $26.3B+1.8% | $25.8B-3.8% | $26.9B+4.5% | $25.7B-1.2% | $26.0B |
| Cash & Equivalents | $9.2B+12.7% | $8.1B+6.5% | $7.6B-7.7% | $8.3B-2.8% | $8.5B+16.4% | $7.3B+15.0% | $6.4B-21.1% | $8.0B |
| Inventory | $5.8B-4.1% | $6.1B-6.1% | $6.5B+14.6% | $5.7B+6.7% | $5.3B-6.0% | $5.6B-4.1% | $5.9B+5.7% | $5.6B |
| Accounts Receivable | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Goodwill | $18.9B+0.4% | $18.8B-0.6% | $19.0B+3.2% | $18.4B+4.7% | $17.5B-1.0% | $17.7B+0.3% | $17.6B0.0% | $17.6B |
| Total Liabilities | $86.9B-0.2% | $87.0B+0.3% | $86.8B+4.3% | $83.2B+2.4% | $81.3B+0.5% | $80.9B+1.2% | $80.0B-1.1% | $80.8B |
| Current Liabilities | $32.8B+4.0% | $31.5B-13.5% | $36.4B+15.5% | $31.5B-0.1% | $31.5B+4.0% | $30.3B-2.7% | $31.1B+3.0% | $30.2B |
| Long-Term Debt | $42.3B-4.1% | $44.1B+12.2% | $39.3B-0.2% | $39.4B+5.9% | $37.2B-3.3% | $38.5B+5.1% | $36.6B-2.8% | $37.7B |
| Total Equity | $20.4B+5.3% | $19.4B+5.3% | $18.4B+0.2% | $18.4B+1.9% | $18.0B-7.3% | $19.5B0.0% | $19.4B+2.1% | $19.0B |
| Retained Earnings | $72.8B+0.8% | $72.2B+0.9% | $71.5B-1.0% | $72.2B0.0% | $72.3B-0.5% | $72.6B+1.5% | $71.5B+1.7% | $70.3B |
PEP Cash Flow Statement
| Metric | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 | Q1'24 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $6.6B+48.0% | $4.5B+127.1% | $2.0B+302.4% | -$973.0M-115.5% | $6.3B+28.2% | $4.9B+108.2% | $2.4B+326.3% | -$1.0B |
| Capital Expenditures | $1.9B+93.1% | $992.0M+9.7% | $904.0M+49.9% | $603.0M-75.6% | $2.5B+114.8% | $1.1B+5.7% | $1.1B+77.0% | $614.0M |
| Free Cash Flow | $4.7B+35.1% | $3.5B+226.8% | $1.1B+167.6% | -$1.6B-141.3% | $3.8B+1.7% | $3.8B+196.0% | $1.3B+176.7% | -$1.7B |
| Investing Cash Flow | -$1.6B-47.9% | -$1.1B+61.7% | -$2.9B-135.0% | -$1.2B+50.9% | -$2.5B-65.9% | -$1.5B-69.4% | -$892.0M-58.7% | -$562.0M |
| Financing Cash Flow | -$4.0B-38.1% | -$2.9B-2976.0% | $100.0M-94.3% | $1.8B+177.7% | -$2.3B+4.5% | -$2.4B+18.1% | -$2.9B-29200.0% | $10.0M |
| Dividends Paid | $1.9B-0.2% | $1.9B+4.7% | $1.9B-1.1% | $1.9B+1.2% | $1.9B-0.2% | $1.9B+7.1% | $1.7B-1.6% | $1.8B |
| Share Buybacks | $248.0M-3.9% | $258.0M-17.0% | $311.0M+69.9% | $183.0M-23.8% | $240.0M-19.7% | $299.0M-5.1% | $315.0M+115.8% | $146.0M |
PEP Financial Ratios
| Metric | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 | Q1'24 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 53.2%-0.3pp | 53.6%-1.1pp | 54.7%-1.1pp | 55.8%+3.2pp | 52.6%-2.9pp | 55.4%-0.5pp | 55.9%+1.1pp | 54.8% |
| Operating Margin | 12.1%-2.8pp | 14.9%+7.0pp | 7.9%-6.5pp | 14.4%+6.3pp | 8.1%-8.5pp | 16.6%-1.4pp | 18.0%+3.1pp | 14.9% |
| Net Margin | 8.7%-2.2pp | 10.9%+5.3pp | 5.6%-4.7pp | 10.2%+4.8pp | 5.5%-7.1pp | 12.6%-1.1pp | 13.7%+2.5pp | 11.2% |
| Return on Equity | 12.4%-1.0pp | 13.4%+6.6pp | 6.9%-3.1pp | 10.0%+1.5pp | 8.4%-6.6pp | 15.1%-0.8pp | 15.8%+5.1pp | 10.7% |
| Return on Assets | 2.4%-0.1pp | 2.4%+1.2pp | 1.2%-0.6pp | 1.8%+0.3pp | 1.5%-1.4pp | 2.9%-0.2pp | 3.1%+1.1pp | 2.0% |
| Current Ratio | 0.85-0.1 | 0.91+0.1 | 0.78-0.1 | 0.83+0.0 | 0.82-0.1 | 0.89+0.1 | 0.83-0.0 | 0.86 |
| Debt-to-Equity | 2.07-0.2 | 2.28+0.1 | 2.140.0 | 2.14+0.1 | 2.06+0.1 | 1.98+0.1 | 1.88-0.1 | 1.98 |
| FCF Margin | 16.0%+1.5pp | 14.5%+9.8pp | 4.7%+13.5pp | -8.8%-22.6pp | 13.8%-2.4pp | 16.1%+10.5pp | 5.6%+14.7pp | -9.1% |
Note: The current ratio is below 1.0 (0.85), indicating current liabilities exceed current assets, which may suggest potential short-term liquidity concerns.
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Frequently Asked Questions
What is Pepsico Inc's annual revenue?
Pepsico Inc (PEP) reported $93.9B in total revenue for fiscal year 2025. This represents a 2.3% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Pepsico Inc's revenue growing?
Pepsico Inc (PEP) revenue grew by 2.3% year-over-year, from $91.9B to $93.9B in fiscal year 2025.
Is Pepsico Inc profitable?
Yes, Pepsico Inc (PEP) reported a net income of $8.2B in fiscal year 2025, with a net profit margin of 8.8%.
What is Pepsico Inc's EBITDA?
Pepsico Inc (PEP) had EBITDA of $14.9B in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
How much debt does Pepsico Inc have?
As of fiscal year 2025, Pepsico Inc (PEP) had $9.2B in cash and equivalents against $42.3B in long-term debt.
What is Pepsico Inc's gross margin?
Pepsico Inc (PEP) had a gross margin of 54.1% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.
What is Pepsico Inc's operating margin?
Pepsico Inc (PEP) had an operating margin of 12.2% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is Pepsico Inc's net profit margin?
Pepsico Inc (PEP) had a net profit margin of 8.8% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
Does Pepsico Inc pay dividends?
Yes, Pepsico Inc (PEP) paid $5.62 per share in dividends during fiscal year 2025.
What is Pepsico Inc's return on equity (ROE)?
Pepsico Inc (PEP) has a return on equity of 40.4% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is Pepsico Inc's free cash flow?
Pepsico Inc (PEP) generated $7.7B in free cash flow during fiscal year 2025. This represents a 6.7% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Pepsico Inc's operating cash flow?
Pepsico Inc (PEP) generated $12.1B in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Pepsico Inc's total assets?
Pepsico Inc (PEP) had $107.4B in total assets as of fiscal year 2025, including both current and long-term assets.
What are Pepsico Inc's capital expenditures?
Pepsico Inc (PEP) invested $4.4B in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
How much does Pepsico Inc spend on research and development?
Pepsico Inc (PEP) invested $839.0M in research and development during fiscal year 2025.
Does Pepsico Inc buy back shares?
Yes, Pepsico Inc (PEP) spent $1.0B on share buybacks during fiscal year 2025, returning capital to shareholders by reducing shares outstanding.
How many shares does Pepsico Inc have outstanding?
Pepsico Inc (PEP) had 1.37B shares outstanding as of fiscal year 2025.
What is Pepsico Inc's current ratio?
Pepsico Inc (PEP) had a current ratio of 0.85 as of fiscal year 2025, which is below 1.0, which may suggest potential liquidity concerns.
What is Pepsico Inc's debt-to-equity ratio?
Pepsico Inc (PEP) had a debt-to-equity ratio of 2.07 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Pepsico Inc's return on assets (ROA)?
Pepsico Inc (PEP) had a return on assets of 7.7% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is Pepsico Inc's Altman Z-Score?
Pepsico Inc (PEP) has an Altman Z-Score of 3.69, placing it in the Safe Zone (low bankruptcy risk). The Z-Score combines five financial ratios—working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets—to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Pepsico Inc's Piotroski F-Score?
Pepsico Inc (PEP) has a Piotroski F-Score of 5 out of 9, indicating neutral financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7–9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Pepsico Inc's earnings high quality?
Pepsico Inc (PEP) has an earnings quality ratio of 1.47x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
Can Pepsico Inc cover its interest payments?
Pepsico Inc (PEP) has an interest coverage ratio of 10.3x, meaning it can comfortably cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is Pepsico Inc?
Pepsico Inc (PEP) scores 48 out of 100 on our Financial Profile, indicating moderate overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.