10-KPeriod: FY2025

PEPSICO INC Annual Report, Year Ended Dec 27, 2025

Filed February 3, 2026For Securities:PEP

Summary

PepsiCo, Inc. (PEP) has released its 2025 Annual Report (10-K), detailing a year marked by efforts to navigate macroeconomic challenges including inflation, supply chain disruptions, and evolving consumer preferences. The company demonstrated resilience, with reported net revenue increasing by 2% to $93.9 billion. However, operating profit saw a decline of 11% to $11.5 billion, primarily attributed to increased operating costs, specific impairment charges, and the impact of higher commodity costs, partially offset by productivity savings and effective net pricing. Strategic initiatives remain a focus, including efforts to reignite North American business performance through integration and brand investment, and expanding international market presence. The company continues to advance its pep+ transformation, emphasizing portfolio reshaping towards healthier options, sustainable packaging, and digital integration. Despite a challenging environment, PepsiCo is committed to returning value to shareholders through a 4% increase in its annualized dividend and a new $10 billion share repurchase program, signaling confidence in its long-term strategy.

Financial Highlights

53 data points
Beta

Revenue

$93.92B

54.1% Gross Margin

Net Income

$8.24B

8.8% Net Margin

EPS (Diluted)

$6.00

Total Assets

$107.40B

Cash & Equivalents

$9.16B

Free Cash Flow

$12.09B

Financial Statements
Beta
Revenue$93.92B
Cost of Revenue$43.07B
Gross Profit$50.86B
R&D Expenses$839.00M
SG&A Expenses$37.37B
Operating Income$11.50B
Interest Expense$1.12B
Net Income$8.24B
EPS (Basic)$6.02
EPS (Diluted)$6.00
Shares Outstanding (Basic)1.37B
Shares Outstanding (Diluted)1.37B

Key Highlights

  • 1Net revenue grew 2% to $93.9 billion in 2025, indicating continued top-line strength.
  • 2Operating profit decreased 11% to $11.5 billion, impacted by higher costs and specific charges.
  • 3The company completed significant acquisitions, including poppi and Siete, to bolster its portfolio.
  • 4PepsiCo announced a 4% increase in its annualized dividend and a new $10 billion share repurchase program.
  • 5Continued investment in productivity initiatives and digital transformation, including AI, to enhance efficiency and consumer insights.
  • 6Navigated challenges such as inflation, supply chain disruptions, and evolving consumer demand, while maintaining a focus on the pep+ sustainability agenda.
  • 7Sales to Walmart represented 14% of consolidated net revenue, highlighting the importance of key retail partners.

Frequently Asked Questions

Operating profit decreased by 11% primarily due to increased operating costs, significant impairment charges related to the Rockstar brand, a decline in organic volume, and the impact of higher commodity costs. These were partially offset by productivity savings and effective net pricing.

PepsiCo expects to return approximately $8.9 billion to shareholders in 2026, comprising dividends of approximately $7.9 billion (reflecting a 4% increase in the annualized dividend to $5.92 per share) and share repurchases of approximately $1.0 billion under a new $10 billion repurchase program.

In 2025, PepsiCo completed the acquisition of poppi, a prebiotic soda business, for $1.95 billion plus contingent consideration, and Siete, a Mexican-American foods business, for $1.2 billion in cash. These acquisitions are expected to strengthen its portfolio.

Key risk factors include potential reductions in future demand due to changing consumer preferences and affordability, damage to brand reputation, product recalls, inability to compete effectively, workforce management challenges, water scarcity, disruptions to supply chains and manufacturing operations, cyber incidents, geopolitical instability, and the impact of taxes and regulations on products.