PepsiCo, Inc. Revenue & Financials

Here's the number that tells PepsiCo's real financial story: net income dropped from $9.6 billion in FY2024 to $8.2 billion in FY2025, even as revenue grew from $91.9 billion to $93.9 billion. Revenue up, profit down. That's the signature of a company absorbing impairment charges, commodity inflation, and the cost of strategic price cuts simultaneously. The margin compression is deliberate, not accidental. Management chose to cut prices on flagship snacks to restore volume growth — and it worked. Q1 2026 showed the payoff: revenue $19.44 billion (up 8.5% year-over-year), net income $2.33 billion (up 27%), and North America food volumes finally turning positive. The question is whether that trajectory holds through the full year or whether it was a one-quarter sugar rush from promotional activity. Frito-Lay's economics remain extraordinary. Operating margins above 30% in a physical-goods business with trucks, plants, and agricultural inputs. That's pricing power made manifest. The beverage side runs thinner — more competitive, more exposed to Coca-Cola's marketing spend, more vulnerable to private label in categories like water and juice. Free cash flow funds the 54th consecutive dividend increase (Dividend Aristocrat status), share repurchases, and the $3.15 billion in acquisitions closed in 2025 (Siete + Poppi). The balance sheet carries meaningful debt but nothing that threatens the business at current interest rates. Market cap of ~$205 billion at roughly 2.2x revenue reflects the market pricing PepsiCo as a bond-like cash flow stream with modest growth — which is exactly what it is, unless the acquisition strategy delivers upside surprise.