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PepsiCo PEP Gross margin

Gross margin at other companies

Coca-Cola logo
Coca-ColaKO
61.7%+0.7pp
General Mills logo
General MillsGIS
33%-2.3pp
Hershey logo
HersheyHSY
35%-7.4pp
Monster Beverage logo
Monster BeverageMNST
55.5%+0.8pp
Mondelez International logo
Mondelez InternationalMDLZ
28.8%-4.0pp
Keurig Dr Pepper logo
Keurig Dr PepperKDP
53.8%-1.5pp

Other financials

Income statement

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Revenue$19.4B+8.5%
Gross profit$10.7B+7.4%
Operating income$3.2B+24.4%
Net income$2.3B+26.9%
EPS (diluted)$1.70+27.8%

Balance sheet

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Cash & equivalents$10.6B+26.8%
Total debt$52.7B+8.7%
Total equity$21.4B+16.3%
Total assets$110.65B+8.8%

Cash flow

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Operating cash flow$41.0M+104%
CapEx$447.0M-25.9%
Free cash flow-$406.0M+74.2%

Valuation

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Market cap$193.52B+3.2%
Enterprise value$235.7B+3.5%
P/E22.2×+2.2×
P/S0.0×

Profitability

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Operating margin12.7%-1.2pp
Net margin9.1%-1.1pp

Returns & leverage

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Return on equity43.9%-6.1pp
Debt / equity2.5×-0.2×
Current ratio0.9×+0.1×

Where this comes from

Calculated from PepsiCo’s reported figures.

Based on trailing twelve months.

The official record: PepsiCo’s 10-Q, filed April 16, 2026, on SEC EDGAR. View the filing →

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Questions, answered.

What is PepsiCo's gross margin?
PepsiCo (PEP) reported gross margin of 54.1% in Q1 2026.
How has PepsiCo's gross margin changed year-over-year?
PepsiCo's gross margin decreased by 1.3% year-over-year, from 54.7% to 54.1%.
What is the long-term trend for PepsiCo's gross margin?
Over 4 years (2021 to 2025), PepsiCo's gross margin has grown at a 0.1% compound annual growth rate (CAGR), from 216.1% to 217.3%.
What does gross margin mean?
How much of every sales dollar is left after the direct cost of what was sold.
How do you interpret gross margin?
Higher and stable gross margins indicate pricing power and a durable cost structure. A declining trend signals input-cost pressure, pricing competition, or a shift toward lower-margin products.
How does gross margin compare across companies?
Highly comparable within an industry, less so across industries — software runs 70%+ while distributors run in single digits. Track the trend more than the absolute level across sectors.