Free cash flow
PepsiCo Free cash flow increased by 128.7% to $6.79B in Q4 2025 compared to the prior quarter. Year-over-year, this metric grew by 15.9%, from $5.86B to $6.79B. Over 4 years (FY 2021 to FY 2025), Free cash flow shows relatively stable performance with a 2.4% CAGR. This is a positive signal — higher values indicate stronger performance for this metric.
Analysis
How to read this metric
An increase suggests strong operational efficiency and the ability to self-fund future innovation or return capital to shareholders, while a decrease may indicate heavy capital expenditure cycles or declining operational profitability.
Detailed definition
Free cash flow represents the cash generated by a company after accounting for cash outflows to support operations and m...
Peer comparison
High-growth semiconductor and AI infrastructure peers typically prioritize reinvestment, so free cash flow margins are often compared against R&D intensity and capital expenditure requirements of industry rivals.
free_cash_flowHistorical Data
| Q2 '21 | Q3 '21 | Q4 '21 | Q1 '22 | Q2 '22 | Q3 '22 | Q4 '22 | Q1 '23 | Q2 '23 | Q3 '23 | Q4 '23 | Q1 '24 | Q2 '24 | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Value | $1.04B | $4.36B | $2.79B | -$696.00M | $382.00M | $3.75B | $2.17B | -$973.00M | $506.00M | $5.09B | $3.30B | -$1.66B | -$386.00M | $3.37B | $5.86B | -$1.58B | -$511.00M | $2.97B | $6.79B |
| QoQ Change | — | +321.1% | -36.0% | -125.0% | +154.9% | +881.7% | -42.2% | -144.9% | +152.0% | +906.5% | -35.2% | -150.2% | +76.7% | +973.1% | +73.9% | -126.9% | +67.6% | +681.0% | +128.7% |
| YoY Change | — | — | — | — | -63.1% | -14.0% | -22.2% | -39.8% | +32.5% | +35.8% | +52.1% | -70.1% | -176.3% | -33.8% | +77.7% | +4.8% | -32.4% | -11.9% | +15.9% |
Free cash flow at Other Companies
Frequently Asked Questions
- What is PepsiCo's free cash flow?
- PepsiCo (PEP) reported free cash flow of $6.79B in Q4 2025.
- How has PepsiCo's free cash flow changed year-over-year?
- PepsiCo's free cash flow increased by 15.9% year-over-year, from $5.86B to $6.79B.
- What is the long-term trend for PepsiCo's free cash flow?
- Over 4 years (2021 to 2025), PepsiCo's free cash flow has grown at a 2.4% compound annual growth rate (CAGR), from $6.99B to $7.67B.
- What does free cash flow mean?
- The cash a company has left over after paying for its operating expenses and capital investments.