PepsiCo (PEP) stock
Consumer Staples · Soft Drinks & Non-alcoholic Beverages
PepsiCo (PEP) is a Soft Drinks & Non-alcoholic Beverages company in the Consumer Staples sector, headquartered in Purchase, New York. As of October 23, 2026, PEP closed at $135.77, a market capitalization of $185.02 billion, the 63rd largest company in the S&P 500. Over the last twelve months it generated $98.24 billion in revenue (+6% year over year) and $10.47 billion in free cash flow. The stock trades at 17.1x trailing earnings and 15.7x forward earnings.
- 1-year total return: -6.8% (dividends reinvested)
- 5-year return: -0.0% a year
- 52-week range: $123.47 – $171.48
- Gross margin 54.3%, operating margin 16.9%
- Dividend yield: 4.36%, 53 straight years of increases
- FI Handbook report card: B- across 10 metrics
- 6th largest of 34 Consumer Staples stocks in the S&P 500
PEP price chart
1Y price change: -10.4% (price only; total returns below include dividends)
| Total return | 1M | YTD | 1Y | 3Y | 5Y | 10Y | MAX |
|---|---|---|---|---|---|---|---|
| PEP | +4.3% | -2.5% | -6.8% | -1.9% | -0.0% | +5.8% | +11.5% |
Dividends reinvested. 3Y and longer are annualized; MAX is annualized since 1972.
PEP key statistics
- Market cap
- $185.0B
- #63 in S&P 500
- P/E (TTM)
- 17.1x
- Forward P/E
- 15.7x
- EPS (TTM)
- $7.95
- Revenue (TTM)
- $98.2B
- +6%
- Free cash flow
- $10.5B
- Gross margin
- 54.3%
- Operating margin
- 16.9%
- Return on equity
- 52.2%
- Dividend yield
- 4.36%
- 52-week range
- $123.47 – $171.48
- Beta
- 0.36
- Price / sales
- 1.9x
- EV / EBITDA
- 11.8x
- Debt / equity
- 2.31x
- Employees
- 306,000
PEP report card
B-Ten fundamentals graded A to F against fixed thresholds. Not a buy or sell rating.
- Revenue growth5.6%C
- Gross margin54.3%B
- Operating margin16.9%C
- FCF margin10.7%C
- Return on equity52.2%A
- Net debt / EBITDA2.1xD
- Forward P/E15.7xB
- PEG ratio1.4xB
- Shareholder yield4.9%B
- Share count change / yr-0.3%C
Pepsico financials
Revenue went from $62.8B in fiscal 2016 to $93.9B in fiscal 2025, growing 4.6% a year.
| Fiscal year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $62.8B | $63.5B | $64.7B | $67.2B | $70.4B | $79.5B | $86.4B | $91.5B | $91.9B | $93.9B |
| Gross profit | $34.6B | $34.7B | $35.3B | $37.0B | $38.6B | $42.4B | $45.8B | $49.6B | $50.1B | $50.9B |
| Operating income | $9.8B | $10.3B | $10.1B | $10.3B | $10.1B | $11.2B | $11.5B | $12.0B | $12.9B | $11.5B |
| Net income | $6.3B | $4.9B | $12.5B | $7.3B | $7.1B | $7.6B | $8.9B | $9.1B | $9.6B | $8.2B |
| EPS (diluted) | $4.36 | $3.38 | $8.78 | $5.20 | $5.12 | $5.49 | $6.42 | $6.56 | $6.95 | $6.00 |
| Free cash flow | $7.6B | $7.1B | $6.1B | $5.4B | $6.4B | $7.0B | $5.6B | $7.9B | $7.2B | $7.7B |
| Buybacks | $3.0B | $2.0B | $2.0B | $3.0B | $2.0B | $106.0M | $1.5B | $1.0B | $1.0B | $1.0B |
| Dividends paid | $4.2B | $4.5B | $4.9B | $5.3B | $5.5B | $5.8B | $6.2B | $6.7B | $7.2B | $7.6B |
| Diluted shares | 1.5B | 1.4B | 1.4B | 1.4B | 1.4B | 1.4B | 1.4B | 1.4B | 1.4B | 1.4B |
Source: SEC filings (10-K XBRL). EPS and share counts are split-adjusted.
What's priced into PEP?
A reverse DCF asks what growth the current price requires. With an enterprise value of $225.7B and $10.5B of trailing free cash flow, Pepsico needs to grow free cash flow about 12.4% a year for ten years (fading to 3.0% terminal growth) to earn a 10% annual return. For context, free cash flow grew 3.8% a year over the last five years.
P/E ratio history
Current 22.6x vs. median 22.4x (10th–90th percentile 16.3x–30.6x).
A model, not a forecast or advice. Small changes in assumptions move the answer a lot.
PEP dividend
- Dividend yield
- 4.36%
- Annual dividend
- $5.92
- Years of increases
- 53
- 5-yr dividend growth
- 6.9%
- per year
- Payout ratio
- 73%
- Payments per year
- 4
Regular dividends per share by calendar year; special dividends excluded. Current year omitted until complete.
PEP earnings
Next report: February 2, 2027. Pepsico has beaten EPS estimates 1 quarters in a row. Last quarter's revenue was $25.3B (+6% year over year).
| Report date | EPS estimate | EPS actual | Surprise |
|---|---|---|---|
| Oct 8, 2026 | $2.30 | $2.34 | +1.9% |
| Jul 9, 2026 | $2.21 | $2.20 | -0.4% |
| Apr 16, 2026 | $1.55 | $1.61 | +3.8% |
| Feb 3, 2026 | $2.24 | $2.26 | +1.0% |
| Oct 9, 2025 | $2.26 | $2.29 | +1.3% |
| Jul 17, 2025 | $2.03 | $2.12 | +4.5% |
| Apr 24, 2025 | $1.49 | $1.48 | -0.8% |
| Feb 4, 2025 | $1.94 | $1.96 | +0.9% |
Stocks like PEP
| Name | Today | 1Y | Mkt cap | P/E | |
|---|---|---|---|---|---|
 KO Coca-Cola | -2.76% | +36% | $398.9B | 27.8x | Compare |
 MNST Monster Beverage | -2.35% | +32% | $90.5B | 42.8x | Compare |
 KDP Keurig Dr Pepper | -1.45% | +30% | $47.2B | 35.0x | Compare |
 WMT Walmart | -1.02% | +13% | $954.1B | 43.4x | Compare |
 COST Costco Wholesale | -1.46% | +7% | $444.6B | 48.3x | Compare |
 PG Procter & Gamble | -2.76% | +10% | $373.2B | 24.3x | Compare |
 PM Philip Morris International | -1.13% | +31% | $310.9B | 29.1x | Compare |
 MO Altria | -2.31% | +23% | $124.1B | 15.6x | Compare |
PEP news
- Want Income for Life? PepsiCo Yields 4.3% and Has the Kind of Competitive Moat That Makes the Income Durable. · Oct 24, 2026
- Pepsi Tastes a Victory · Oct 23, 2026
- PepsiCo Kept Taco Bell Through 2036. Here’s the Supply Chain Update It Still Owes Investors in Late 2026 · Oct 23, 2026
- PepsiCo (PEP) Renews Taco Bell Deal, Is The Stock A Bargain? · Oct 23, 2026
- Up 35%, How Long Can Coca-Cola Continue Crushing the S&P 500? · Oct 25, 2026
PEP stock FAQ
What is PEP's market cap?
PepsiCo's market capitalization is $185.02 billion as of October 23, 2026, ranking 63rd in the S&P 500.
What is PEP's P/E ratio?
PEP trades at a trailing price-to-earnings ratio of 17.1x and a forward P/E of 15.7x. Its median P/E over the period we track is 22.4x.
Does PEP pay a dividend?
Yes. PepsiCo pays $5.92 per share a year, a 4.36% yield. It has raised its dividend 53 years in a row. Dividends grew 6.9% a year over the last five years.
How much has PEP stock returned?
Including reinvested dividends, PEP returned -6.8% over one year, -0.0% a year over five years, +5.8% a year over ten years through October 23, 2026.
Is PEP stock overvalued?
At today's price, a reverse discounted cash flow model (10% discount rate, 3% terminal growth) implies PepsiCo must grow free cash flow about 12% a year for the next decade. Its free cash flow grew 4% a year over the last five years. Whether that is achievable decides if the stock is cheap or expensive. This is a model, not advice.
When does PEP report earnings?
PepsiCo is expected to report earnings on February 2, 2027. It has beaten EPS estimates 1 quarters in a row.
How many employees does PepsiCo have?
PepsiCo has about 306,000 full-time employees, or $321,049 of revenue per employee.
Sources: SEC EDGAR filings, Yahoo Finance market data (delayed), FI Handbook calculations. Last close October 23, 2026. Methodology