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Unrecognized tax benefits

PepsiCo Unrecognized tax benefits increased by 4.0% to $2.38B in Q4 2025 compared to the prior quarter. Year-over-year, this metric grew by 4.0%, from $2.28B to $2.38B. Over 5 years (FY 2020 to FY 2025), Unrecognized tax benefits shows an upward trend with a 7.9% CAGR. This increase may warrant attention — for this metric, lower values are generally preferred.

Analysis

StatementBalance Sheet Statement
SectionOther
CategoryRisk
SignalLower is better
VolatilityModerate
First reportedQ4 2013
Last reportedQ4 2025Feb 3, 2026

How to read this metric

A high balance indicates significant tax positions that could be challenged, representing potential future tax liabilities.

Detailed definition

This represents the aggregate amount of tax benefits that have not been recognized in the financial statements because t...

Peer comparison

Standard disclosure for large multinational firms; reflects the complexity of global tax compliance.

Metric ID: other_unrecognized_tax_benefits

Historical Data

5 periods
 Q4 '21Q4 '22Q4 '23Q4 '24Q4 '25
Value$1.9B$1.87B$2.09B$2.28B$2.38B
QoQ Change-1.7%+12.1%+9.1%+4.0%
YoY Change-1.7%+12.1%+9.1%+4.0%
Range$1.87B$2.38B
CAGR+25.1%
Avg YoY Growth+5.9%
Median YoY Growth+6.6%
Current Streak3 quarters growth

Frequently Asked Questions

What is PepsiCo's unrecognized tax benefits?
PepsiCo (PEP) reported unrecognized tax benefits of $2.38B in Q4 2025.
How has PepsiCo's unrecognized tax benefits changed year-over-year?
PepsiCo's unrecognized tax benefits increased by 4.0% year-over-year, from $2.28B to $2.38B.
What is the long-term trend for PepsiCo's unrecognized tax benefits?
Over 5 years (2020 to 2025), PepsiCo's unrecognized tax benefits has grown at a 7.9% compound annual growth rate (CAGR), from $1.62B to $2.38B.
What does unrecognized tax benefits mean?
Tax savings that the company has claimed but are not yet certain to be accepted by tax authorities.