PepsiCo

PEP on Nasdaq. PepsiCo sells drinks and snacks to people in more than 200 countries. Market value $171.5bn.

Watch this stockFree. We tell you when something changes.

Price checks use the past 12 months to June 2026. Quality checks use five annual reports, the latest for the year to December 2025.

Should I look at this?

Worth a closer look

Read what could go wrong

This is not advice. Check the numbers below.

Compare with another stock

Cash yield
past 12 months to June 2026
5.4%fair

For every $100 of what the whole company costs, it produced $5.41 of spare cash in the past 12 months. A savings account pays about $4.

Price to profit
past 12 months to June 2026
15.0×full

You pay 15.0 years of operating profit for the business. The average large US company costs around 18.

Return on capital
five annual reports to December 2025
17.7%five-year median

Each dollar kept in the business earns 18 cents a year. Above 10 is good.

Quality score: 83 of 100. Price score: 91 of 100. Our list needs 70 on quality and 60 on price.

$125.65 a share, at its 1-year low

Over the past year the price has ranged from $124.22 to $171.48.

Expected to report results Thursday 8 Oct, before the market opens.

Dividend: 4.5% a year

Paid every year for at least 5 years

Prices from Monday’s close (5 October).

Five years of cash, in billions

7.0
5.6
7.9
7.2
7.7
9.3
2021202220232024202512 monthsto Jun '26
Revenue
$79.5bn$86.4bn$91.5bn$91.9bn$93.9bn
Operating margin
14.0%13.3%13.1%14.0%12.2%
Debt to equity
2.512.282.382.462.41
Shares outstanding
1.38bn1.37bn1.37bn1.37bn1.36bn

Health checks

  • Free cash flow positive5 of 5 years
  • Accounting looks honest (Beneish)Nothing unusual
  • Financial strength (Piotroski)5 of 8 checks we could run
  • Profit backed by cash (accruals)Yes
  • Debt2.41× equity
  • Revenue growth, five yearsSlow, 5.9% a year
  • Buying back its own sharesRoughly flat

The quarter to June 2026

How the business did, compared with the same quarter a year earlier.

  • Sales: $24.2 billion last quarter, up 6% on a year ago.
  • Profit: $3 billion, up 136% on a year ago.
  • It keeps 15 cents of each $1 of sales as operating profit, up from 11 cents a year earlier.
  • Spare cash over the past 12 months: $9.3 billion, up from $7.1 billion.
  • About the same number of shares as a year ago.
  • Debt is $44.6 billion more than cash, down from $46.3 billion a year ago.
  • Sales grew on a year ago in each of the last 4 quarters.
Sales by quarter
Sales by quarter
Quarter toAmount
August 2024$23.3bn
December 2024$27.8bn
March 2025$17.9bn
June 2025$22.7bn
August 2025$23.9bn
December 2025$29.3bn
March 2026$19.4bn
June 2026$24.2bn
Profit by quarter
Profit by quarter
Quarter toAmount
August 2024$2.9bn
December 2024$1.5bn
March 2025$1.8bn
June 2025$1.3bn
August 2025$2.6bn
December 2025$2.5bn
March 2026$2.3bn
June 2026$3.0bn

From the company's quarterly reports to the SEC.

Dates

Next results (estimated)
8 October 2026
Last annual report (10-K)
3 February 2026
Next quarterly (estimated, 10-Q)
8 October 2026

Who owns it

30 long-term investors we follow own it, down from 31 last quarter. 3,401 funds in all.

Jun '25
Dec '25
Jun '26

Sold out this quarter

Largest holders overall

From 13F filings for the quarter ended 30 June 2026.

Big holders and activists

1 investor owns more than 5%.

From Schedule 13D and 13G filings: anyone owning more than 5% must file one.

What insiders did

No insider bought shares on the open market in the last 12 months. 3 sold $6m.

  • Flavell David
    EVP, Gen Counsel & Corp Sec
    Sold
    Date
    27 July 2026
    Shares
    2,900
    Price
    $139.54
    Value
    $404,674
  • Willemsen Eugene
    CEO, International Beverages
    Sold
    Date
    4 March 2026
    Shares
    6,500
    Price
    $164.45
    Value
    $1m
  • Laguarta Ramon
    Chairman and CEO, Director
    Sold
    Date
    2 March 2026
    Shares
    27,945
    Price
    $167.39
    Value
    $5m

From Form 4 filings: insiders must report trades in their own company's shares within two days.

Warning signs in its filings

Problems the company itself reported to the SEC, in its own words.

None of the warning signs we check for were found.

We look for five warning signs: doubt it can keep going, weak checks on its own accounts, a notice that its past accounts can't be relied on, a change of auditor, and one customer bringing in a big share of sales. We don't check lawsuits, investigations or debt yet.

We checked the auditor's report, internal controls, restatement notices, auditor changes and big customers in the 10-K filed 3 Feb 2026, plus the 10-Q filed 9 Jul 2026 and 6 later 8-Ks.

A 10-K is the yearly report every US company files with the SEC. An 8-K is a short notice of a big event.

What could go wrong

  • It carries a lot of debt: 2.4× its equity.

Whether the price already reflects the risks is what the deep dive is for.

What changed in the risks this year

Companies must list what could hurt them each year. These are the parts that changed since last year’s report.

  • Reduction in future demand for our products would adversely affect our business.

    Demand for our products depends in part on our ability to innovate and anticipate and effectively respond to shifts in consumer trends and preferences, including the types of products our consumers want and how they browse for, purchase and consume them. Consumer preferences continuously evolve due to a variety of factors, including: changes in consumer demographics, consumption patterns (including increased food purchased away-from-home), diet (whether due to changes in consumer behavior and eating habits, increasing use of weight-loss drugs, such as GLP-1 medications, or other factors) and channel preferences (including continued increases in the e-commerce and online-to-offline channels and use of artificial intelligence shopping agents that autonomously select products that may not be ours); pricing (including the effective impact of tariffs and taxes imposed on the manufacture, distribution or sale of certain of our products as a result of ingredients contained in such products); affordability pressures and changes in consumer spending patterns (including if consumers switch to private label or lower-priced product offerings); changes in funding for or restrictions on the inclusion of our products in benefit programs, such as the Supplemental Nutrition Assistance Program (SNAP) in the United States; product quality; product functionality (including products high in protein or fiber-enriched); concerns or perceptions regarding packaging and its environmental impact (such as single-use and other plastic packaging); concerns or perceptions regarding the processing, nutrition profile and health effects of, or location of origin of, ingredients or substances in our products or packaging, including due to public statements by government officials, increased litigation, changes in regulations, regulatory scrutiny or the results of third-party studies (whether or not scientifically valid); and concerns or perceptions regarding our workforce policies and initiatives. Concerns with any of the foregoing have affected and may continue to affect consumer behaviors and can lead consumers to reduce or publicly boycott the purchase or consumption of our products.
    Read more

Read it in the annual report

The deep dive

Everything above is arithmetic on public filings. The deep dive reads the last ten years of annual reports, the proxy statements, and the earnings calls, then argues the case the way Buffett, Klarman, and Hohn would, and checks every claim against the source.

  • What the business is worth, as a range, and the margin of safety at today’s price
  • Prices to start buying, buy, and buy hard
  • The three things that would make this a mistake
  • Every number footnoted to the filing it came from
Create a free account to run it

Your first deep dive is free.

What a finished deep dive looks like

Not advice. Numbers on this page come from SEC filings and are updated each night; prices are updated again after the US market closes. The five-year figures are rounded.