At a glance
PepsiCo Inc is worth $191.36B, about 23 times its fiscal 2025 earnings. Revenue grew 2.3% to $93.92B in fiscal 2025, with 8.8% kept as profit; over 5 years it has grown 5.9% a year. It pays a 4.13% dividend yield, raised every year for at least 9 years, and returned $38.14B to shareholders in dividends and buybacks over FY2021–FY2025. The stock returned +0.0% over the past year with dividends reinvested and +0.3% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 28.2% in the 2020 crash (S&P 500: 33.7%) and 11.9% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 7 months and 1 month after the lows.
The business in plain English
PepsiCo makes and sells snacks and drinks in more than 200 countries and territories. Its brands include Lay's, Doritos, Cheetos and Tostitos snacks, Quaker oats, Gatorade, Pepsi, Mountain Dew and SodaStream sparkling-water makers. It sells mostly to retailers, independent distributors and bottlers rather than directly to shoppers, though it also sells online.
Revenue was $93.9 billion in the fiscal year ended December 27, 2025. The two North American units are the largest: PepsiCo Beverages North America brought in 30% and PepsiCo Foods North America 29.3%. Europe, Middle East and Africa added 19.2%, Latin America Foods 11.2%, International Beverages Franchise 5.3% and Asia Pacific Foods 4.9%. By country, the United States supplied 55.6% of revenue, Mexico 7.4% and Russia 5.1%.
Drinks follow two models. In North America and in Europe, the Middle East and Africa, PepsiCo runs its own bottling plants and sells finished drinks. Elsewhere, mainly through the international franchise unit, it sells concentrate, the flavor base for a drink, to independent bottlers that make and sell the finished product. Many snacks and drinks reach stores by direct-store delivery, meaning PepsiCo or its bottlers truck them in and stock the shelves. In fiscal 2025, PepsiCo kept 12.2 cents of operating profit (earnings before interest and taxes) from each dollar of sales.
Price history
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PEP 0.0% over the year to Nov 2, 2026, total return with dividends reinvested.
How it makes money
By business segment
| PepsiCo Beverages North America | $28.20B | 30% |
| PepsiCo Foods North America | $27.53B | 29.3% |
| Europe, Middle East & Africa (Segment) | $18.02B | 19.2% |
| Latin America Foods (Segment) | $10.55B | 11.2% |
| International Beverage Franchise | $5.00B | 5.3% |
| Asia Pacific Foods (Segment) | $4.63B | 4.9% |
By geography
| UNITED STATES | $52.23B | 55.6% |
| All Other Countries | $17.94B | 19.1% |
| MEXICO | $6.95B | 7.4% |
| RUSSIAN FEDERATION | $4.77B | 5.1% |
| CANADA | $3.73B | 4% |
| CHINA | $2.62B | 2.8% |
| UNITED KINGDOM | $2.14B | 2.3% |
| BRAZIL | $1.78B | 1.9% |
| SOUTH AFRICA | $1.77B | 1.9% |
Latest results
- In Q3 FY2026 (ended Sep 5, 2026), revenue was $25.27B, up 5.6% from a year earlier, and net income was $3.05B (+17.1%).
- For fiscal 2025, revenue was $93.92B (+2.3% year over year; +5.9% a year from FY2020 to FY2025) with a 8.8% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | +5.9% good |
|---|---|
| Operating margin | 12.2% watch |
| Free cash flow margin | 8.2% watch |
| Return on equity (FY2025) | 40.4% good |
| Return on assets (FY2025) | 7.7% watch |
| Net cash (cash minus debt) | $-40.72B weak |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $70.37B | $7.12B | $6.37B |
| FY2021 | $79.47B | $7.62B | $6.99B |
| FY2022 | $86.39B | $8.91B | $5.60B |
| FY2023 | $91.47B | $9.07B | $7.92B |
| FY2024 | $91.85B | $9.58B | $7.19B |
| FY2025 | $93.92B | $8.24B | $7.67B |
Valuation snapshot
| Market value | $191.36B |
|---|---|
| P/E ratio | 23.4 |
| Dividend yield | 4.13% |
Rank among 1514 US companies
Market value at each year end
PepsiCo’s market value went from $150.06B at the end of 2016 to $191.36B on Nov 2, 2026, up 28%; since the end of 2025 it is down 2%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Nov 2, 2026 | $191.36B | -2.5% |
| 2025 | $196.24B | -5.9% |
| 2024 | $208.62B | -10.7% |
| 2023 | $233.51B | -6.2% |
| 2022 | $248.90B | +3.6% |
| 2021 | $240.18B | +17.2% |
| 2020 | $204.94B | +7.5% |
| 2019 | $190.58B | +22.2% |
| 2018 | $155.95B | -8.6% |
| 2017 | $170.54B | +13.7% |
| 2016 | $150.06B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| PEP price data to Nov 2, 2026 | +0.8% | 0.0% | -2.1% | +0.3% | +6.0% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +0.8% |
| 2025 | -1.9% |
| 2024 | -7.6% |
| 2023 | -3.3% |
| 2022 | +6.8% |
| 2021 | +20.6% |
| 2020 | +11.7% |
| 2019 | +27.4% |
| 2018 | -4.8% |
| 2017 | +17.8% |
| 2016 | +7.8% |
| 2015 | +8.7% |
| 2014 | +17.3% |
| 2013 | +24.7% |
| 2012 | +6.4% |
| 2011 | +4.8% |
| 2010 | +10.6% |
| 2009 | +14.6% |
| 2008 | -26.0% |
| 2007 | +23.9% |
| 2006 | +7.9% |
| 2005 | +15.2% |
| 2004 | +13.8% |
| 2003 | +12.0% |
| 2002 | -12.1% |
| 2001 | -0.5% |
| 2000 | +42.6% |
| 1999 | -12.5% |
| 1998 | +14.3% |
| 1997 | +36.0% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 34.9% over that stretch · deepest drop along the way 40.4%, back to its old high 39.3 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 27.2% over that stretch · deepest drop along the way 28.2%, back to its old high 6.8 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 0.1% over that stretch · deepest drop along the way 11.9%, back to its old high 1.3 months after the low |
Insider activity
Form 4 filings from 2025-10-27 to 2026-10-27 (25 read): 4 open-market purchases ($23.7M) and 4 sales ($5.5M).
| Date | Insider | Type | Value |
|---|---|---|---|
| Oct 14, 2026 | Robert C Pohlad Director | buy | $10.8M |
| Oct 14, 2026 | Robert C Pohlad Director | buy | $5.8M |
| Oct 14, 2026 | Robert C Pohlad Director | buy | $5.8M |
| Oct 21, 2026 | Ramon Laguarta Chairman and CEO, Director | sell | $4.1M |
| Oct 14, 2026 | Robert C Pohlad Director | buy | $1.3M |
Who owns it
Large shareholders (13G filings)
| Vanguard Capital Management | 7.51% | Mar 31, 2026 |
ETFs with the most weight in PEP
| IYK iShares U.S. Consumer Staples ETF | 8.18% |
| FTXG First Trust Nasdaq Food & Beverage ETF | 7.69% |
| DURA VanEck Durable High Dividend ETF | 4.93% |
| XLP Consumer Staples Select Sector SPDR Fund | 4.75% |
| VDC Vanguard Consumer Staples ETF | 4.72% |
| FSTA Fidelity MSCI Consumer Staples Index ETF | 4.69% |
| KXI iShares Global Consumer Staples ETF | 4.39% |
| QQLV Invesco QQQ Low Volatility ETF | 4.27% |
What could go wrong
- Weight-loss drugs and changing diets. Sales depend on keeping up with tastes. PepsiCo's annual report cites appetite-curbing GLP-1 weight-loss drugs, interest in high-protein foods, and concerns that its snacks and sodas are “ultra-processed” or unhealthy.
- Soda taxes, marketing limits and SNAP rules. Governments can tax products over their ingredients, restrict their marketing, or bar them from benefit programs such as SNAP, the US food-assistance program. Each can raise prices or cut sales.
- Shoppers trading down and retailer clout. PepsiCo sells mainly through retailers and distributors. If a key customer cuts orders, shoppers switch to cheaper store brands, or AI shopping agents pick rival products, PepsiCo could lose sales or have to cut prices.
- Volatile costs for crops, packaging and fuel. Potatoes, corn, sugar, oats, plastic resin, aluminum and fuel are key inputs. Its February 2026 annual report warned that 2025's cost swings could continue, and PepsiCo may not always pass increases on.
- Wars, boycotts and currency swings abroad. Russia supplied 5.1% of fiscal 2025 revenue and Mexico 7.4%. Wars, political tensions, boycotts of non-local brands and weaker foreign currencies can cut sales or shrink overseas profits once converted into dollars.
- A large debt load. As of September 5, 2026, PepsiCo owed about $51.9 billion against $11.2 billion of cash and investments. A credit-rating downgrade could raise borrowing costs while dividends took nearly all of fiscal 2025's free cash flow.
Recent events
- Other company announcement
- Quarterly results released
- Executive or board change
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- Other company announcement
- Shareholder vote results
- Quarterly results released
- Other company announcement
- Quarterly results released
- Executive or board change
For income and retirement investors
PepsiCo has raised its dividend at least nine years in a row through fiscal 2025. Dividends per share rose from $4.02 in fiscal 2020 to $5.62 in fiscal 2025, about 6.9% a year. The yield was 4.34% as of October 27, 2026. The cushion is thin: in fiscal 2025, dividends used 92.7% of net income and 99.6% of free cash flow (cash left after running and investing in the business). Buybacks (share repurchases) were modest at $1 billion a year in fiscal 2023 through 2025; the share count fell 1.5% from February 2022 to October 2026.
In the 2008 financial crisis the shares fell 40.4% and took about 39 months to regain their peak. In the 2020 COVID crash they fell 28.2% and recovered in about seven months. In the 2022 bear market they were roughly flat while the market slid, with a worst drop of 11.9%. A single stock carries more risk than a diversified fund.
Questions investors ask
How does PepsiCo make money?
PepsiCo makes money by selling snacks and drinks, mostly to retailers, distributors and bottlers rather than directly to shoppers. Revenue was $93.9 billion in the fiscal year ended December 27, 2025. PepsiCo Beverages North America (Pepsi, Gatorade, Mountain Dew) supplied 30%, PepsiCo Foods North America (Lay's, Doritos, Quaker) 29.3%, and Europe, Middle East and Africa 19.2%. The rest came from Latin America, Asia Pacific and an international unit that sells drink concentrate to bottlers. Net income was $8.24 billion.
Does PepsiCo raise its dividend every year?
Yes, it has for at least nine straight years through fiscal 2025, and the streak may be longer. Dividends per share grew from $4.02 in fiscal 2020 to $5.62 in fiscal 2025, about 6.9% a year. The dividend yield, or annual dividends as a percentage of the share price, was 4.34% as of October 27, 2026. The board sets the dividend, and future raises are not guaranteed.
Can PepsiCo afford its dividend?
So far, yes, but with little to spare. In fiscal 2025, PepsiCo paid $7.64 billion in dividends, equal to 92.7% of net income and 99.6% of its $7.67 billion of free cash flow. Net income fell 14% that year, pushing the payout up. Debt was also heavy: about $51.9 billion against $11.2 billion of cash and investments as of September 5, 2026. In the quarter ended that day, net income rose 17.1% from a year earlier.
Is PepsiCo a recession-proof stock?
No. PepsiCo's shares have fallen sharply in past crashes. They dropped 40.4% in the 2008 financial crisis and took about 39 months, until June 2012, to regain their peak. In the 2020 COVID crash they fell 28.2% and recovered by October 2020. In the 2022 bear market they held roughly flat. Over the year to October 27, 2026, the share price fell 9%, though it was up 71% over 10 years.
Which ETFs hold PepsiCo stock?
PepsiCo is held by 212 ETFs. Funds giving it the most weight include iShares U.S. Consumer Staples ETF (IYK) at 8.18%, First Trust Nasdaq Food & Beverage ETF (FTXG) at 7.69%, VanEck Durable High Dividend ETF (DURA) at 4.93%, Consumer Staples Select Sector SPDR Fund (XLP) at 4.75% and Vanguard Consumer Staples ETF (VDC) at 4.72%. Weights shift over time. Owning a fund spreads risk across many companies.