PepsiCo Inc.
PEPFinancial Analysis · Updated May 12, 2026 · Coverage 2026-Q2
Latest Q Revenue
$19.4B
Q1 2026 · +8.5% YoY
TTM ROIC
15%
FY2025 · GAAP-adjusted NOPAT / Invested Capital (Equity + Net Debt); GAAP operating income × (1-0.21) / ~$60B invested capital · WACC ~7% · Moat spread +8pp
Financial Snapshot
ticker: PEP step: 04 generated: 2026-05-12 source: quick-research
PepsiCo, Inc. (PEP) — Financial Snapshot
Income Statement Summary
| Metric | FY2023 | FY2024 | FY2025 | YoY |
|---|---|---|---|---|
| Revenue | $91.5B | $91.9B | $93.9B | +2.3% |
| Organic Revenue Growth | +9.5% | +2% | +1-2% | decelerating |
| Gross Margin | 54.4% | 55.0% | 55.2% | +0.2pp |
| Core Operating Margin | 17.0% | 17.7% | 17.5% | -0.2pp |
| Core Net Income | $9.5B | $10.2B | $9.9B | -3% |
| Core EPS (diluted) | $6.90 | $8.16 | $8.04 | -1% |
Segment Performance (FY2025)
| Segment | Revenue | YoY Volume |
|---|---|---|
| PepsiCo Foods North America (PFNA, merged Frito-Lay + Quaker) | ~$28B | -2 to -3% |
| PepsiCo Beverages North America (PBNA) | ~$28B | flat |
| Latin America | ~$12B | +5% |
| Europe | ~$14B | +3-4% |
| AMESA | ~$7B | +6% |
| APAC | ~$5B | +4% |
Q1 2026 Highlights (Critical Inflection)
| Metric | Q1 2026 | YoY |
|---|---|---|
| Revenue | ~$23B | +4-5% |
| PFNA Volume | +2% | FIRST POSITIVE READING IN >1 YEAR |
| Adj EPS | ~$1.50 | flat |
| Price cuts impact | -15% on core Frito-Lay | drove 300M+ incremental occasions |
Cash Flow & Balance Sheet (FY2025)
| Metric | Value |
|---|---|
| Operating Cash Flow | ~$13B |
| Capital Expenditures | ~($5.5B) |
| Free Cash Flow | ~$7.5B |
| Cash & Equivalents | ~$8B |
| Total Debt | ~$45B |
| Dividend Coverage | ~1.0x (tight at current pace) |
Key Ratios (approximate, May 2026)
- P/E (forward): ~17x | EV/EBITDA: ~14x | Dividend Yield: ~3.9%
- ROIC: ~12%
- FCF Margin: ~8%
Growth Profile
PEP is mid-execution on a major reset: 2024-2025 saw North America snack volume decline as the cost-of-living pressure + GLP-1 drug adoption + private label encroachment converged. Q1 2026 marks a critical inflection: PFNA volume positive for first time in >1 year, driven by 15% price cuts on core Frito-Lay brands. Poppi + Siete acquisitions add high-growth health-positioning. Management targets multi-year FCF growth of 40% as productivity programs cycle through.
Forward Estimates
- FY2026E Revenue: ~$95-97B (+2-3%)
- FY2026E Core EPS: ~$8.25-8.50 (consensus, +2-5%)
- FY2027E EPS: ~$8.75-9.25 (+5-9%)
- Long-term EPS growth target: ~8% (recently reduced from 9-11%)
Capital Return
- Dividend $5.74/share annual = ~$8B paid annually
- 53 consecutive years of dividend growth (Dividend King)
- Buybacks: ~$1-2B annual (modest given debt paydown priority post-Poppi)
- Total return: ~5-6% combined yield
Deeper Financial Analysis
The fundamental tier adds 9 additional research dimensions for $PEP.
Revenue Breakdown
Segment revenue, geographic mix, product-line contribution margins, and cohort dynamics.
Financial Trends
Quarter-over-quarter momentum, leading indicators, and inflection point analysis.
Balance Sheet
Debt structure, liquidity runway, dilution risk, and working capital dynamics.
Capital Allocation
Buyback cadence, M&A appetite, dividend policy, and reinvestment priorities.
Returns on Capital (ROIC)
Multi-year ROIC vs. WACC, marginal returns on reinvestment, sales-to-invested-capital efficiency, and moat spread.
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