# PepsiCo Inc. (PEP) — Financial Analysis

**Exchange:** NASDAQ  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-12  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/PEP/thesis · /stocks/PEP/memo

## 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 ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/PEP/fundamental

## Navigation

- Overview: /stocks/PEP
- Financials (this page): /stocks/PEP/financials
- Thesis: /stocks/PEP/thesis
- Investment Memo: /stocks/PEP/memo
- Coverage universe: /stocks