PepsiCo: how the business works

• North American beverages, PBNA ($28.2B in FY2025)

  Drinks in the US and Canada, such as Pepsi, Mountain Dew, Gatorade, Aquafina, Bubly and poppi. 30.0% of FY2025 net revenue.

• North American foods, PFNA ($27.5B)

  Snacks and foods in the US and Canada, such as Lay's, Doritos, Cheetos, Tostitos, Ruffles, Fritos, Quaker and Siete. 29.3% of net revenue.

• Europe, Middle East and Africa ($18.0B)

  Snacks such as Walkers, plus drinks from company-owned bottlers. 19.2% of net revenue.

• Latin America foods ($10.5B)

  Snacks and foods in Latin America. 11.2% of net revenue.

• International beverages franchise ($5.0B)

  PepsiCo's franchise drinks business outside North America, plus SodaStream home soda makers. 5.3% of net revenue.

• Asia Pacific foods ($4.6B)

  Snacks and foods in markets including China, Australia, New Zealand and India. 4.9% of net revenue.

1. 1Customers paid PepsiCo $93.9 billion of net revenue in FY2025.
2. 2Making the products took $43.1 billion, and selling and running the company took $37.4 billion.
3. 3That left $13.5 billion before brand write-downs; $2.0 billion of write-downs, mainly Rockstar, cut operating profit to $11.5 billion.
4. 4Net interest, pension and other costs took $1.3 billion and income tax $1.9 billion.
5. 5After a $55 million share for minority partners, $8.2 billion was left as net income.

• Plants and equipment

  Property, plant and equipment was $29.9 billion at FY2025 end. Capital spending was $4.4 billion in FY2025, 4.7% of revenue.

• People

  About 306,000 employees worldwide at Dec 27, 2025, about 125,000 of them in the US.

• Brands

  Goodwill was $18.9 billion and other indefinite-lived intangible assets $13.8 billion at FY2025 end. Their value can be written down, as with Rockstar in FY2025.

• Ingredients and packaging

  Cost of sales was $43.1 billion in FY2025. The 10-K lists supply-chain and input cost risks among its risk factors.

• The Coca-Cola Company

  NYSE: KO

  Named as PepsiCo's primary beverage competitor; PepsiCo's 10-K says Coca-Cola has a significant soda share advantage in many markets outside the US. Coca-Cola's FY2025 10-K reports revenue of $47.9 billion and operating income of $13.8 billion.

• Mondelez International

  Named in PepsiCo's FY2025 10-K as a competitor. Mondelez's FY2025 10-K reports revenue of $38.5 billion and operating income of $3.5 billion.

• Keurig Dr Pepper

  Named in PepsiCo's FY2025 10-K as a competitor. Keurig Dr Pepper's FY2025 10-K reports revenue of $16.6 billion and operating income of $3.6 billion.

• Monster Beverage and Red Bull

  Both named in PepsiCo's FY2025 10-K as competitors.

• Mars, Nestlé and Kraft Heinz

  Also named in PepsiCo's FY2025 10-K as competitors, with Campbell's, Conagra, Hormel and Utz among others.

• Compare: Coca-Cola vs PepsiCo  →

• Bought brands: Siete, poppi and Alani Nu distribution

  New

  6 points of PBNA's 5% Q3 FY2026 growth

  PepsiCo bought Siete for $1.2 billion in January 2025 and poppi for $1.95 billion in May 2025, and began distributing Alani Nu in Q4 2025. PBNA's Q3 FY2026 organic growth, which leaves out deals, was 0%.

  Status: New, recently announced.

• International snacks and drinks

  Working

  Revenue +8% to +14% by unit, Q3 FY2026

  Europe, Middle East and Africa grew 8%, Latin America foods 14% and Asia Pacific foods 10%, with organic growth of 9%, 6% and 9%. The 2026 proxy letter lists growing the international business as a priority.

  Status: Working, on track against what the company said.

• North American snacks

  Behind

  PFNA Q3 FY2026: revenue 0%, operating profit −13%

  The 10-Q says unfavorable net pricing offset higher organic volume. On Oct 8, 2026 PepsiCo said it is investing more in innovation and brand building to improve North America.

  Status: Behind, behind the company's own plan.

• Cost cuts and margins

  Mixed

  Core operating margin 16.5% vs 16.8%; GAAP operating margin 16.7% vs 12.3%, first 36 weeks of FY2026 (Q3 FY2026 earnings release)

  In December 2025 PepsiCo said it had closed three plants that year and aims for at least 100 basis points of core margin expansion over three fiscal years. On Oct 8, 2026 it said more structural cost cuts are being identified.

  Status: Mixed, partly on track.

Status compares progress with what the company itself said it would do: Working = on track against what the company said; Mixed = partly on track; Behind = behind the company's own plan; New = recently announced; Early = too early to judge.

• Official (GAAP): Diluted EPS, FY2025

  $6.00

  Company's own measure: Core EPS, FY2025

  $8.14

  PepsiCo's core measure leaves out restructuring ($0.58 per share), acquisition and divestiture charges ($0.25), impairment and other charges ($1.09), tax items ($0.08) and pension items ($0.14).

• Official (GAAP): Operating profit, FY2025

  $11.5B

  Company's own measure: Core operating profit, FY2025

  $14.9B

  Leaves out mark-to-market effects, restructuring, acquisition and divestiture charges, and impairment and other charges. PepsiCo puts the core margin at 15.9%, against 12.2% as reported.

• Official (GAAP): PBNA operating profit, FY2025

  $1.1B

  Company's own measure: Core operating profit of North American beverages (PBNA), FY2025

  $3.3B

  On the core basis PBNA was 19.5% of segment operating profit; on GAAP it was 8.1%, after $1,523 million of impairment and other charges, mainly Rockstar.

• Official (GAAP): Reported net revenue growth, FY2025 (as stated in the Q4 FY2025 earnings release)

  2.3%

  Company's own measure: Organic revenue growth, FY2025

  1.7%

  PepsiCo's organic measure leaves out currency moves, acquisitions and divestitures, and the 53rd week in years that have one.

• Official (GAAP): Reported net revenue growth, Q3 FY2026

  5.6%

  Company's own measure: Organic revenue growth, Q3 FY2026

  3.1%

  Same measure for the quarter; it leaves out acquisitions such as poppi and currency moves.

• Official (GAAP): Diluted EPS, Q3 FY2026

  $2.23

  Company's own measure: Core EPS, Q3 FY2026

  $2.34

  Same exclusions as the full-year core EPS.

• Official (GAAP): Operating margin, first 36 weeks of FY2026 (as stated in the Q3 FY2026 earnings release and 10-Q)

  16.7%

  Company's own measure: Core operating margin, first 36 weeks of FY2026

  16.5%

  PepsiCo's core margin was 16.8% in the same period of FY2025.

• Official (GAAP): Cash from operations, FY2025

  $12.1B

  Company's own measure: Free cash flow as PepsiCo defines it, FY2025

  $8.2B

  PepsiCo subtracts capital spending and adds back $528 million of property sales. This page's free cash flow (what this means)free cash flowCash from operations minus spending on buildings and equipment. Learn more, $7,672 million, does not add them back.

These are the company's own measures, defined by the company. They are not comparable across companies, and they are not added together. Each sits beside the nearest official (GAAP) figure.

Learn: Non-GAAP measures: what a company's "adjusted" numbers leave out

• Debt is short-term plus long-term debt obligations. Net debt is a Cityfort calculation from the Q3 FY2026 10-Q; the EBITDA multiple is a Cityfort calculation from the FY2025 10-K and the Q3 FY2025 and Q3 FY2026 10-Qs.
• Net debt was $39.7 billion at FY2025 year end, against $34.3 billion at FY2021 year end (Cityfort calculation from the FY2025 and FY2022 10-Ks).
• Operating lease liabilities of $3.8 billion at FY2025 year end are not counted as debt here.
• Russia held 20% of PepsiCo's cash at Sep 5, 2026.
• On Oct 16, 2026, after the quarter, PepsiCo issued €500 million of 3.750% notes due 2029 and €500 million of 4.250% notes due 2035.

Officers and directors (as a group), shares

0.1%

From the company's proxy statement (DEF 14A), later Schedule 13G filings and the share counts on its latest annual or quarterly report. Each holder row shows the date of its own filing.

Learn: How to read a proxy statement (DEF 14A): Nvidia's 2026 proxy · Form 4 insider filings: who files, the codes and the footnotes

Auditor

KPMG LLP, since 1990

Auditor changes

None in the period covered

Audit qualifications

None reported

Related-party dealings

The 2026 proxy describes sponsorship deals with sports teams in which director Robert C. Pohlad's family holds stakes. In 2025 PepsiCo paid the Minnesota Twins about $1,045,000 and received about $1,366,000 from product sales at its stadium. The Board found these do not impair his independence.

Credit rating

S&P and Moody's (ratings of PepsiCo's euro notes, as stated in its Oct 9, 2026 pricing term sheet) A+ (S&P) / A1 (Moody's) (Stable (both)), Oct 9, 2026

A credit rating describes the company's ability to repay debt. It is not a rating of the share.

Share price

$142.71

Market value (market cap)

$194.5B

P/E

17.9×

P/B

8.7×

EV/EBITDA

12.6×

Source: PEP historical daily prices, Nasdaq (close of Nov 5, 2026: $142.71); Form 10-Q, Q3 fiscal 2026 (12 weeks ended Sep 5, 2026); Q4 and full-year 2025 earnings release (8-K Exhibit 99.1) and 4 more