What is PepsiCo's deferred tax assets, valuation allowance?

PepsiCo (PEP) reported deferred tax assets, valuation allowance of $6.12B in Q4 2025.

How has PepsiCo's deferred tax assets, valuation allowance changed year-over-year?

PepsiCo's deferred tax assets, valuation allowance decreased by 1.1% year-over-year, from $6.19B to $6.12B.

What is the long-term trend for PepsiCo's deferred tax assets, valuation allowance?

Over 5 years (2020 to 2025), PepsiCo's deferred tax assets, valuation allowance has grown at a 5.5% compound annual growth rate (CAGR), from $4.69B to $6.12B.

What does deferred tax assets, valuation allowance mean?

The portion of deferred tax assets that the company expects it will not be able to use.

Other

Deferred Tax Assets, Valuation Allowance

PepsiCo Deferred Tax Assets, Valuation Allowance decreased by 1.1% to $6.12B in Q4 2025 compared to the prior quarter. Year-over-year, this metric declined by 1.1%, from $6.19B to $6.12B. Over 5 years (FY 2020 to FY 2025), Deferred Tax Assets, Valuation Allowance shows an upward trend with a 5.5% CAGR. This is a positive signal — lower values indicate better performance for this metric.

Analysis

StatementBalance Sheet Statement

SectionOther

CategoryRisk

SignalLower is better

VolatilityModerate

First reportedQ4 2012

Last reportedQ4 2025Feb 3, 2026

How to read this metric

An increase in the allowance suggests management's reduced confidence in future profitability or tax capacity.

Detailed definition

This is a contra-asset account that reduces the gross deferred tax assets to the amount that is 'more likely than not' t...

Peer comparison

Peers with stable, high profitability typically maintain low valuation allowances.

Metric ID: other_deferred_tax_assets_valuation_allowance

Historical Data

5 periods

	Q4 '21	Q4 '22	Q4 '23	Q4 '24	Q4 '25
Value	$4.63B	$5.01B	$6.48B	$6.19B	$6.12B
QoQ Change	—	+8.3%	+29.2%	-4.5%	-1.1%
YoY Change	—	+8.3%	+29.2%	-4.5%	-1.1%

Range$4.63B – $6.48B

CAGR+32.2%

Avg YoY Growth+8.0%

Median YoY Growth+3.6%

Current Streak2 quarters decline

Deferred Tax Assets, Valuation Allowance at Other Companies

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Frequently Asked Questions

What is PepsiCo's deferred tax assets, valuation allowance?: PepsiCo (PEP) reported deferred tax assets, valuation allowance of $6.12B in Q4 2025.
How has PepsiCo's deferred tax assets, valuation allowance changed year-over-year?: PepsiCo's deferred tax assets, valuation allowance decreased by 1.1% year-over-year, from $6.19B to $6.12B.
What is the long-term trend for PepsiCo's deferred tax assets, valuation allowance?: Over 5 years (2020 to 2025), PepsiCo's deferred tax assets, valuation allowance has grown at a 5.5% compound annual growth rate (CAGR), from $4.69B to $6.12B.
What does deferred tax assets, valuation allowance mean?: The portion of deferred tax assets that the company expects it will not be able to use.