Coca-Cola vs PepsiCo: Market Share, Revenue and Margins
A sourced comparison of Coca-Cola and PepsiCo revenue, margins and business models, with a clear limit on what their filings say about soda market share.
PepsiCo reported nearly twice Coca-Cola's net revenue in fiscal 2025, but that does not mean Pepsi has twice Coca-Cola's soda sales. PepsiCo sells food as well as drinks, and the companies recognize revenue through different bottling arrangements. Their annual filings also do not provide a comparable percentage of U.S. soda market share. Here is what the reported figures actually show.
FY2025 revenue and profit: the reported comparison
| Metric | Coca-Cola | PepsiCo |
|---|---|---|
| Fiscal year end | December 31, 2025 | December 27, 2025 |
| Net revenue | $47.941 billion | $93.925 billion |
| Gross profit | $29.544 billion | $50.859 billion |
| Gross margin, calculated from reported figures | 61.6% | 54.1% |
| Operating income | $13.762 billion | $11.498 billion |
Figures come from Coca-Cola's FY2025 Form 10-K and PepsiCo's FY2025 Form 10-K. Gross margin is gross profit divided by net revenue and rounded to one decimal place. Fiscal year ends differ by four days. These are consolidated company results, not U.S. soda sales.
Why is PepsiCo's revenue higher?
PepsiCo reported that beverages contributed 42% of its FY2025 net revenue and convenient foods contributed 58%. Its total includes snack brands and food businesses, so comparing $93.925 billion with Coca-Cola's $47.941 billion does not isolate the Coke-versus-Pepsi drink rivalry. PepsiCo also reported that its company-owned bottlers accounted for 36% of consolidated net revenue. Coca-Cola's concentrate and finished-product mix is different. These accounting and operating choices make a direct revenue-to-market-share conversion invalid.
For company-specific context, see the Coca-Cola financials and PepsiCo financials pages. Use the annual filings above when checking a figure against a specific reporting period.
Does Coca-Cola have a higher margin?
On the reported FY2025 numbers, Coca-Cola's gross margin was 61.6% versus PepsiCo's 54.1%. Coca-Cola also reported $13.762 billion of operating income compared with PepsiCo's $11.498 billion. Those are company-wide accounting results, not margins on a comparable bottle of soda.
One-year operating income deserves particular care: Coca-Cola's FY2024 results included a $3.109 billion fairlife contingent-consideration remeasurement, while PepsiCo's FY2025 results included $1.993 billion of intangible-asset impairments. Both filings explain these items. Treating the year-to-year operating change as pure underlying beverage performance would be misleading.
Who has the larger U.S. soda market share?
The two 10-K filings do not establish a like-for-like U.S. carbonated soft drink market-share percentage for the two companies. A defensible answer needs a separately sourced market dataset and a defined measure: retail dollars or drink volume; cola alone or all carbonated soft drinks; individual brands or full company portfolios; and a specific U.S. time period. The previously published 44-46% versus 25-27% figures on this page lacked a verifiable dataset and have been removed.
Be especially cautious with a headline saying PepsiCo's overall revenue proves Pepsi drinks lead. Snacks are a majority of PepsiCo's reported revenue. Conversely, Coca-Cola's higher gross margin does not by itself prove which company sells more U.S. soda by volume. These are separate questions requiring separate evidence.
Questions readers ask
Does PepsiCo make more revenue than Coca-Cola?
Yes. PepsiCo reported $93.925 billion in FY2025 net revenue and Coca-Cola reported $47.941 billion. PepsiCo's figure includes convenient foods, which accounted for 58% of its revenue.
Which company reported the higher FY2025 gross margin?
Coca-Cola: 61.6%, compared with PepsiCo's 54.1%, calculated from the gross profit and net revenue in their respective FY2025 filings.
Can these annual reports settle U.S. soda market share?
No. Consolidated revenue includes different products, countries and bottling models. Market share needs a market dataset with the same product, geography, period and measurement basis for both competitors.
Sources and method
Primary sources: The Coca-Cola Company, FY2025 Form 10-K; PepsiCo, FY2025 Form 10-K. Dollar figures are as reported in millions and converted to billions. Calculated margins use unrounded values. No market-share estimate is inferred from revenue.
Disclaimer:Financial figures cited in this article are approximate and sourced from publicly available reports. Always verify against the company's current SEC filings (10-K, 10-Q) or earnings releases before using in investment or business analysis.