PayPal vs PepsiCo: Revenue, Profit and Business Model
PayPal reported $33.2B of revenue in FY2025 and $5.2B of net income. PepsiCo reported $93.9B of revenue in FY2025 and $8.2B of net income.
Latest financial snapshot
Financial summary
PayPal
PayPal is large and profitable, but growth has slowed. Revenue climbed from $21.45 billion in 2020 to $33.17 billion in 2025, yet annual growth fell from about 21% to about 4%. Net income reached $5.23 billion in 2025, up from $4.15 billion in 2024. In Q2 2026 revenue rose 5% to $8.68 billion (3% currency-neutral), total payment volume rose 10% to $486.4 billion, transaction margin dollars rose 1% to about $3.9 billion, and non-GAAP EPS was $1.38. Management then raised full-year 2026 non-GAAP EPS guidance to about $5.38 and guided to at least $6 billion of adjusted free cash flow, most of which goes to buybacks. The stock still trades at roughly 10 times earnings, which shows how skeptical investors are about long-term branded checkout growth.
PepsiCo
PepsiCo grew net revenue from $62.8 billion in 2016 to $93.9 billion in 2025, but growth slowed to 0.4% in 2024 and 2.3% in 2025 (1.7% organic) as North American snack volumes declined. Fiscal 2025 net income was $8.24 billion, down 14%, reflecting a roughly $2 billion impairment mainly on Rockstar. In 2026 the picture improved on the top line: Q1 net revenue rose 8.5% and Q2 rose 6.4% to $24.18 billion, helped by acquisitions, currency and international volume. Q2 2026 net income was $2.98 billion versus $1.26 billion a year earlier. For full-year 2026 PepsiCo guided to 2-4% organic revenue growth and 4-6% core constant-currency EPS growth.
Revenue and profit by year
PayPal
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | $33.2B | $5.2B | 15.8% | +4.3% | Source |
| FY2024 | $31.8B | $4.1B | 13.0% | +6.8% | Source |
| FY2023 | $29.8B | $4.2B | 14.3% | +8.2% | Source |
| FY2022 | $27.5B | $2.4B | 8.8% | +8.5% | Source |
| FY2021 | $25.4B | $4.2B | 16.4% | +18.3% | Source |
| FY2020 | $21.5B | $4.2B | 19.6% | +20.7% | Source |
| FY2019 | $17.8B | $2.5B | 13.8% | +15.0% | Source |
| FY2018 | $15.5B | $2.1B | 13.3% | +18.0% | Source |
| FY2017 | $13.1B | $1.8B | 13.7% | +20.8% | Source |
| FY2016 | $10.8B | $1.4B | 12.9% | — | Source |
PepsiCo
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | $93.9B | $8.2B | 8.8% | +2.3% | Source |
| FY2024 | $91.9B | $9.6B | 10.4% | +0.4% | Source |
| FY2023 | $91.5B | $9.1B | 9.9% | +5.9% | Source |
| FY2022 | $86.4B | $8.9B | 10.3% | +8.7% | Source |
| FY2021 | $79.5B | $7.6B | 9.6% | +12.9% | Source |
| FY2020 | $70.4B | $7.1B | 10.1% | +4.8% | Source |
| FY2019 | $67.2B | $7.3B | 10.9% | +3.9% | Source |
| FY2018 | $64.7B | $12.5B | 19.4% | +1.8% | Source |
| FY2017 | $63.5B | $4.9B | 7.6% | +1.2% | Source |
| FY2016 | $62.8B | $6.3B | 10.1% | — | Source |
Where the revenue comes from
PayPal
- Transaction RevenueDominant
Merchant fees and payment-related revenue from branded and unbranded volume.
- Value-Added ServicesMaterial
Interest, credit products, fraud tools, merchant services, and other payments-adjacent products.
- Venmo and Consumer Financial ServicesGrowing
Consumer payment and commerce monetization around Venmo and wallet products.
PepsiCo
- PepsiCo Foods North America (Frito-Lay and Quaker)~30%
Savory snacks, oats, bars and dips sold to US and Canadian retailers and foodservice; about $27.7 billion combined in 2024.
- PepsiCo Beverages North America~30%
Finished drinks, fountain syrup and concentrate, including Pepsi, Mountain Dew, Gatorade and partner brands; about $27.8 billion in 2024.
- International (Latin America, Europe, AMESA, Asia Pacific)~40%
Locally made snacks such as Sabritas, Walkers and Kurkure plus beverage concentrate sold to franchise bottlers and company-run beverage operations.
Business model and strategy
PayPal
How it makes money
PayPal makes most of its money from transaction revenue: fees merchants pay when customers check out with the PayPal or Venmo button (branded checkout), fees on unbranded card processing through Braintree, and consumer fees such as instant transfers, cross-border and currency conversion charges. Branded checkout carries the highest margin because PayPal controls the customer relationship;
Growth strategy
Under Enrique Lores, PayPal's 2026 plan has three parts. First, restore growth in branded checkout, which rose only about 2% in Q2 2026, by improving conversion, Fastlane guest checkout and agentic or AI-assisted commerce. Second, make Venmo and Braintree pull more weight: Venmo is being pushed into merchant payments and debit cards, while Braintree is priced for profit rather than volume.
Competitive advantage
PayPal's edge is a two-sided network: about 439 million active accounts at the end of 2025 on one side and millions of merchants on the other. Shoppers who already store cards and bank accounts in PayPal can pay without typing details, and merchants add the button because it can lift conversion with those shoppers. Processors such as Stripe and Adyen serve merchants but do not own a consumer wallet of that size.
PepsiCo
How it makes money
PepsiCo makes money by manufacturing and selling branded snacks, packaged foods and beverages to retailers, foodservice operators and independent bottlers. It reports through regional segments: PepsiCo Foods North America (Frito-Lay and Quaker, combined in 2025), PepsiCo Beverages North America (PBNA), Latin America, Europe, Africa/Middle East/South Asia (AMESA) and Asia Pacific.
Growth strategy
PepsiCo's current growth strategy has four parts: affordability (price cuts of up to 15% on Lay's, Tostitos, Doritos and Cheetos in February 2026), portfolio shift toward better-for-you and functional brands through acquisitions such as Siete (2025), poppi ($1.95 billion, closed May 2025) and Sabra, cost reduction (three US plant closures, SKU rationalization and a review of North American supply chain and go-to-mark…
Competitive advantage
PepsiCo's advantage is scale in savory snacks combined with a large beverage business and a direct-store-delivery network. Frito-Lay brands such as Lay's, Doritos and Cheetos lead the US salty snack aisle, and DSD lets PepsiCo control merchandising and restocking in grocery, mass and convenience stores.
Questions about PayPal vs PepsiCo
Which company has higher revenue — PayPal Holdings, Inc. or PepsiCo, Inc.?
PayPal Holdings, Inc. reported $33.2B (FY2025), while PepsiCo, Inc. reported $93.9B (FY2025). By last reported revenue, PepsiCo, Inc. is the larger business, with PayPal Holdings, Inc. reporting a smaller revenue base.
What is the market cap of PayPal Holdings, Inc. vs PepsiCo, Inc.?
PayPal Holdings, Inc.'s market capitalisation stands at $47.0B, while PepsiCo, Inc.'s is $175.0B. PepsiCo, Inc. carries the higher market valuation, reflecting investors' expectations of its future earnings power relative to PayPal Holdings, Inc..
Which is more financially efficient — PayPal Holdings, Inc. or PepsiCo, Inc.?
PayPal Holdings, Inc. generates $1.39M / employee in revenue per employee, while PepsiCo, Inc. generates $307k / employee. PayPal Holdings, Inc. shows higher revenue efficiency per headcount, though this reflects business model differences — capital-light software companies routinely outperform labour-intensive manufacturers on this metric.
How do PayPal Holdings, Inc. and PepsiCo, Inc. make money?
PayPal Holdings, Inc. and PepsiCo, Inc. generate revenue in fundamentally different ways. PayPal Holdings, Inc.: PayPal makes most of its money from transaction revenue: fees merchants pay when customers check out with the PayPal or Venmo button (branded checkout), fees on unbranded card processing through Braintree, and consumer fees such as instant transfers, cross-border and currency conversion charges. PepsiCo, Inc.: PepsiCo makes money by manufacturing and selling branded snacks, packaged foods and beverages to retailers, foodservice operators and independent bottlers.
Which company is valued higher relative to revenue — PayPal Holdings, Inc. or PepsiCo, Inc.?
On a price-to-sales (P/S) basis, PayPal Holdings, Inc. trades at 1.4x P/S and PepsiCo, Inc. at 1.9x P/S. PepsiCo, Inc. commands a higher revenue multiple, typically indicating that investors expect faster growth or higher future margins compared to PayPal Holdings, Inc.. A higher multiple is not inherently better — it may also signal that the stock is priced for perfection.
Is PayPal Holdings, Inc. bigger than PepsiCo, Inc.?
By last reported revenue, PepsiCo, Inc. ($93.9B (FY2025)) is the larger company compared to PayPal Holdings, Inc. ($33.2B (FY2025)). Revenue scale is one dimension of size — market capitalisation, employee count, and geographic reach are also relevant depending on the context.
Figures come from each company's filings and the sources linked beside them. Amounts reported in another currency are shown in US dollars at an approximate rate and marked with ~. Back to the PayPal vs PepsiCo overview