Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Return on Sales
Return on Investment
PepsiCo Inc., profitability ratios (quarterly data)
Based on: 10-Q (reporting date: 2026-09-05), 10-Q (reporting date: 2026-06-13), 10-Q (reporting date: 2026-03-21), 10-K (reporting date: 2025-12-27), 10-Q (reporting date: 2025-09-06), 10-Q (reporting date: 2025-06-14), 10-Q (reporting date: 2025-03-22), 10-K (reporting date: 2024-12-28), 10-Q (reporting date: 2024-09-07), 10-Q (reporting date: 2024-06-15), 10-Q (reporting date: 2024-03-23), 10-K (reporting date: 2023-12-30), 10-Q (reporting date: 2023-09-09), 10-Q (reporting date: 2023-06-17), 10-Q (reporting date: 2023-03-25), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-03), 10-Q (reporting date: 2022-06-11), 10-Q (reporting date: 2022-03-19).
Profitability analysis reveals a period of relative stability in top-line efficiency contrasted with significant volatility in operational and bottom-line performance. While gross margins exhibited a gradual upward trajectory, operating and net margins experienced cyclical fluctuations, characterized by distinct contractions in early 2023 and mid-2025, followed by subsequent recoveries.
- Gross Profit Margin
- A steady and incremental improvement is observed, with the margin rising from 53.20% in March 2022 to a peak of 54.74% in March 2025. The ratio remained consistently above 53% throughout the period, indicating a resilient ability to manage direct production costs relative to sales.
- Operating and Net Profit Margins
- Both metrics exhibit a highly correlated pattern of volatility. Operating profit margin declined from 17.46% in March 2022 to a low of 10.08% in March 2023, before recovering to 14.03% by December 2024. A second downturn occurred in June 2025, reaching 11.03%, followed by a recovery to 15.32% by September 2026. Net profit margins mirrored this trend, dropping from 12.57% to 7.48% in March 2023 and hitting a second trough of 7.82% in June 2025, eventually recovering to 11.09% by the end of the period.
- Return on Equity (ROE)
- ROE demonstrated substantial variance, starting at a high of 55.85% in March 2022 and falling sharply to 38.62% by March 2023. A strong recovery phase saw the ratio climb back to 53.09% in December 2024. Similar to the profit margins, a mid-2025 dip to 37.26% was recorded, with a subsequent rebound to 48.88% by September 2026.
- Return on Assets (ROA)
- ROA followed the general trend of the net profit margin, starting at 10.93% and declining to 7.07% in March 2023. After recovering to 9.63% in December 2024, it experienced another decline to 6.78% in June 2025, before ending the period at 9.73% in September 2026.
The divergence between the stable gross profit margin and the volatile operating and net margins suggests that the fluctuations in overall profitability were driven by operating expenses and non-operating items rather than direct costs of goods sold. The strong correlation between ROE and ROA with net profit margins indicates that the returns on capital and assets were primarily influenced by changes in bottom-line profitability.
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Gross Profit Margin
PepsiCo Inc., gross profit margin calculation (quarterly data)
| Sep 5, 2026 | Jun 13, 2026 | Mar 21, 2026 | Dec 27, 2025 | Sep 6, 2025 | Jun 14, 2025 | Mar 22, 2025 | Dec 28, 2024 | Sep 7, 2024 | Jun 15, 2024 | Mar 23, 2024 | Dec 30, 2023 | Sep 9, 2023 | Jun 17, 2023 | Mar 25, 2023 | Dec 31, 2022 | Sep 3, 2022 | Jun 11, 2022 | Mar 19, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Gross profit | 13,754) | 13,111) | 10,731) | 15,620) | 12,824) | 12,422) | 9,993) | 14,603) | 12,923) | 12,582) | 10,002) | 14,753) | 12,778) | 12,201) | 9,858) | 14,576) | 11,663) | 10,810) | 8,767) | ||||||
| Net revenue | 25,274) | 24,181) | 19,443) | 29,343) | 23,937) | 22,726) | 17,919) | 27,784) | 23,319) | 22,501) | 18,250) | 27,850) | 23,453) | 22,322) | 17,846) | 27,996) | 21,971) | 20,225) | 16,200) | ||||||
| Profitability Ratio | |||||||||||||||||||||||||
| Gross profit margin1 | 54.17% | 53.96% | 54.06% | 54.15% | 53.96% | 54.43% | 54.74% | 54.55% | 54.68% | 54.44% | 54.13% | 54.21% | 53.93% | 53.58% | 53.28% | 53.03% | 53.03% | 53.13% | 53.20% | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Gross Profit Margin, Competitors2 | |||||||||||||||||||||||||
| Coca-Cola Co. | 62.32% | 61.89% | 61.74% | 61.63% | 61.63% | 61.43% | 61.07% | 61.06% | 60.43% | 60.53% | 59.98% | 59.52% | 59.14% | 58.52% | 58.09% | 58.14% | 58.49% | 58.89% | 60.27% | ||||||
| Mondelēz International Inc. | 34.26% | 31.15% | 28.77% | 28.38% | 31.05% | 32.55% | 32.74% | 39.12% | 38.77% | 40.34% | 41.69% | 38.22% | 37.77% | 36.59% | 35.79% | 35.92% | 36.34% | 37.76% | 38.54% | ||||||
| Philip Morris International Inc. | 67.74% | 67.51% | 67.30% | 67.12% | 66.92% | 66.44% | 65.68% | 64.81% | 64.08% | 63.88% | 63.70% | 63.35% | 63.12% | 62.58% | 63.07% | 64.10% | 65.32% | 66.49% | 67.17% | ||||||
Based on: 10-Q (reporting date: 2026-09-05), 10-Q (reporting date: 2026-06-13), 10-Q (reporting date: 2026-03-21), 10-K (reporting date: 2025-12-27), 10-Q (reporting date: 2025-09-06), 10-Q (reporting date: 2025-06-14), 10-Q (reporting date: 2025-03-22), 10-K (reporting date: 2024-12-28), 10-Q (reporting date: 2024-09-07), 10-Q (reporting date: 2024-06-15), 10-Q (reporting date: 2024-03-23), 10-K (reporting date: 2023-12-30), 10-Q (reporting date: 2023-09-09), 10-Q (reporting date: 2023-06-17), 10-Q (reporting date: 2023-03-25), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-03), 10-Q (reporting date: 2022-06-11), 10-Q (reporting date: 2022-03-19).
1 Q3 2026 Calculation
Gross profit margin = 100
× (Gross profitQ3 2026
+ Gross profitQ2 2026
+ Gross profitQ1 2026
+ Gross profitQ4 2025)
÷ (Net revenueQ3 2026
+ Net revenueQ2 2026
+ Net revenueQ1 2026
+ Net revenueQ4 2025)
= 100 × (13,754 + 13,111 + 10,731 + 15,620)
÷ (25,274 + 24,181 + 19,443 + 29,343)
= 54.17%
2 Click competitor name to see calculations.
The gross profit margin exhibits a general upward trajectory over the observed period, characterized by initial stability followed by a period of expansion and subsequent stabilization. Throughout the timeframe, the margin remains consistently within a narrow range between 53.03% and 54.74%, suggesting a resilient pricing strategy and stable control over the cost of goods sold.
- Revenue and Gross Profit Seasonality
- A consistent quarterly cyclical pattern is evident in both net revenue and gross profit. Peak values are recorded in the December quarters of each year, with net revenue reaching its highest point of 29,343 million USD in December 2025. This recurring seasonality indicates strong year-end demand; however, the gross profit margin remains relatively insulated from these volume spikes, maintaining steady percentages despite significant fluctuations in total revenue.
- Margin Expansion Phase (2022-2025)
- The gross profit margin experienced a gradual and steady increase from a low of 53.03% in the second half of 2022 to a peak of 54.74% in March 2025. This upward trend suggests an improvement in operational efficiency, successful cost-pass-through mechanisms to consumers, or a reduction in the relative cost of raw materials over this three-year window.
- Stabilization and Normalization (2025-2026)
- Following the peak in early 2025, the margin entered a period of normalization, fluctuating within a tight band between 53.96% and 54.17%. The most recent figure in September 2026 stands at 54.17%, indicating that the gains achieved during the expansion phase have been largely sustained, with the margin stabilizing approximately 100 basis points higher than the 2022 baseline.
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Operating Profit Margin
PepsiCo Inc., operating profit margin calculation (quarterly data)
| Sep 5, 2026 | Jun 13, 2026 | Mar 21, 2026 | Dec 27, 2025 | Sep 6, 2025 | Jun 14, 2025 | Mar 22, 2025 | Dec 28, 2024 | Sep 7, 2024 | Jun 15, 2024 | Mar 23, 2024 | Dec 30, 2023 | Sep 9, 2023 | Jun 17, 2023 | Mar 25, 2023 | Dec 31, 2022 | Sep 3, 2022 | Jun 11, 2022 | Mar 19, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Operating profit | 4,260) | 4,023) | 3,213) | 3,557) | 3,569) | 1,789) | 2,583) | 2,250) | 3,872) | 4,048) | 2,717) | 1,683) | 4,015) | 3,659) | 2,629) | 815) | 3,353) | 2,077) | 5,267) | ||||||
| Net revenue | 25,274) | 24,181) | 19,443) | 29,343) | 23,937) | 22,726) | 17,919) | 27,784) | 23,319) | 22,501) | 18,250) | 27,850) | 23,453) | 22,322) | 17,846) | 27,996) | 21,971) | 20,225) | 16,200) | ||||||
| Profitability Ratio | |||||||||||||||||||||||||
| Operating profit margin1 | 15.32% | 14.82% | 12.71% | 12.24% | 11.03% | 11.44% | 13.93% | 14.03% | 13.40% | 13.54% | 13.14% | 13.10% | 12.14% | 11.60% | 10.08% | 13.33% | 15.85% | 15.96% | 17.46% | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Operating Profit Margin, Competitors2 | |||||||||||||||||||||||||
| Coca-Cola Co. | 30.04% | 29.63% | 29.34% | 28.71% | 30.69% | 27.96% | 24.55% | 21.23% | 20.61% | 22.20% | 21.89% | 24.72% | 24.68% | 24.76% | 24.99% | 25.37% | 24.81% | 24.96% | 27.39% | ||||||
| Mondelēz International Inc. | 13.69% | 11.22% | 9.35% | 9.21% | 11.18% | 12.44% | 11.79% | 17.41% | 16.40% | 17.10% | 18.61% | 15.28% | 14.53% | 13.02% | 11.99% | 11.22% | 12.82% | 15.12% | 15.26% | ||||||
| Philip Morris International Inc. | 38.62% | 37.75% | 36.73% | 36.64% | 36.95% | 36.28% | 36.21% | 35.38% | 35.01% | 34.97% | 33.02% | 32.85% | 33.81% | 33.73% | 36.46% | 38.56% | 38.69% | 40.11% | 40.64% | ||||||
Based on: 10-Q (reporting date: 2026-09-05), 10-Q (reporting date: 2026-06-13), 10-Q (reporting date: 2026-03-21), 10-K (reporting date: 2025-12-27), 10-Q (reporting date: 2025-09-06), 10-Q (reporting date: 2025-06-14), 10-Q (reporting date: 2025-03-22), 10-K (reporting date: 2024-12-28), 10-Q (reporting date: 2024-09-07), 10-Q (reporting date: 2024-06-15), 10-Q (reporting date: 2024-03-23), 10-K (reporting date: 2023-12-30), 10-Q (reporting date: 2023-09-09), 10-Q (reporting date: 2023-06-17), 10-Q (reporting date: 2023-03-25), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-03), 10-Q (reporting date: 2022-06-11), 10-Q (reporting date: 2022-03-19).
1 Q3 2026 Calculation
Operating profit margin = 100
× (Operating profitQ3 2026
+ Operating profitQ2 2026
+ Operating profitQ1 2026
+ Operating profitQ4 2025)
÷ (Net revenueQ3 2026
+ Net revenueQ2 2026
+ Net revenueQ1 2026
+ Net revenueQ4 2025)
= 100 × (4,260 + 4,023 + 3,213 + 3,557)
÷ (25,274 + 24,181 + 19,443 + 29,343)
= 15.32%
2 Click competitor name to see calculations.
The operating profit margin exhibited significant volatility between March 2022 and September 2026, characterized by an initial sharp decline, a subsequent period of stabilization, and a final recovery phase. While net revenue showed consistent seasonal peaks every December, the operating margin did not always scale proportionally, indicating fluctuations in operational efficiency and cost management.
- Initial Margin Compression (2022–2023)
- A pronounced downward trend occurred from March 2022, where the operating profit margin stood at 17.46%, falling to a period low of 10.08% in March 2023. This represents a contraction of 7.38 percentage points over one year, marking the most significant decline in profitability during the analyzed timeframe.
- Stabilization and Recovery (2023–2024)
- Following the March 2023 trough, margins entered a recovery phase, climbing steadily to reach 14.03% by December 2024. Between March 2024 and December 2024, the margin remained relatively stable, oscillating within a narrow band between 13.14% and 14.03%.
- Secondary Volatility (2025)
- A secondary contraction was observed in the first half of 2025, with the margin dipping to 11.44% in June and reaching a secondary low of 11.03% in September 2025. This period suggests a temporary misalignment between revenue growth and operating expenses.
- Final Upward Trajectory (2025–2026)
- From December 2025 through September 2026, a consistent upward trend is evident. The operating profit margin rose from 12.24% to 15.32%, indicating a strengthening of operational profitability and an improved ability to convert net revenue into operating income toward the end of the sequence.
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Net Profit Margin
PepsiCo Inc., net profit margin calculation (quarterly data)
| Sep 5, 2026 | Jun 13, 2026 | Mar 21, 2026 | Dec 27, 2025 | Sep 6, 2025 | Jun 14, 2025 | Mar 22, 2025 | Dec 28, 2024 | Sep 7, 2024 | Jun 15, 2024 | Mar 23, 2024 | Dec 30, 2023 | Sep 9, 2023 | Jun 17, 2023 | Mar 25, 2023 | Dec 31, 2022 | Sep 3, 2022 | Jun 11, 2022 | Mar 19, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Net income attributable to PepsiCo | 3,048) | 2,981) | 2,327) | 2,540) | 2,603) | 1,263) | 1,834) | 1,523) | 2,930) | 3,083) | 2,042) | 1,302) | 3,092) | 2,748) | 1,932) | 518) | 2,702) | 1,429) | 4,261) | ||||||
| Net revenue | 25,274) | 24,181) | 19,443) | 29,343) | 23,937) | 22,726) | 17,919) | 27,784) | 23,319) | 22,501) | 18,250) | 27,850) | 23,453) | 22,322) | 17,846) | 27,996) | 21,971) | 20,225) | 16,200) | ||||||
| Profitability Ratio | |||||||||||||||||||||||||
| Net profit margin1 | 11.09% | 10.78% | 9.15% | 8.77% | 7.82% | 8.23% | 10.24% | 10.43% | 10.18% | 10.34% | 10.00% | 9.92% | 9.05% | 8.76% | 7.48% | 10.31% | 11.61% | 11.28% | 12.57% | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Net Profit Margin, Competitors2 | |||||||||||||||||||||||||
| Coca-Cola Co. | 28.65% | 28.56% | 27.80% | 27.34% | 27.34% | 25.89% | 23.00% | 22.59% | 22.45% | 22.92% | 23.41% | 23.42% | 23.92% | 23.81% | 22.69% | 22.19% | 23.44% | 23.16% | 25.69% | ||||||
| Mondelēz International Inc. | 10.22% | 8.86% | 6.64% | 6.36% | 9.38% | 9.81% | 9.88% | 12.65% | 10.56% | 10.97% | 11.87% | 13.77% | 12.97% | 12.13% | 11.99% | 8.63% | 10.30% | 12.93% | 14.34% | ||||||
| Philip Morris International Inc. | 24.82% | 25.56% | 26.74% | 27.92% | 21.57% | 21.08% | 19.80% | 18.63% | 26.42% | 24.15% | 22.16% | 22.21% | 23.38% | 24.26% | 27.20% | 28.49% | 27.57% | 28.56% | 28.58% | ||||||
Based on: 10-Q (reporting date: 2026-09-05), 10-Q (reporting date: 2026-06-13), 10-Q (reporting date: 2026-03-21), 10-K (reporting date: 2025-12-27), 10-Q (reporting date: 2025-09-06), 10-Q (reporting date: 2025-06-14), 10-Q (reporting date: 2025-03-22), 10-K (reporting date: 2024-12-28), 10-Q (reporting date: 2024-09-07), 10-Q (reporting date: 2024-06-15), 10-Q (reporting date: 2024-03-23), 10-K (reporting date: 2023-12-30), 10-Q (reporting date: 2023-09-09), 10-Q (reporting date: 2023-06-17), 10-Q (reporting date: 2023-03-25), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-03), 10-Q (reporting date: 2022-06-11), 10-Q (reporting date: 2022-03-19).
1 Q3 2026 Calculation
Net profit margin = 100
× (Net income attributable to PepsiCoQ3 2026
+ Net income attributable to PepsiCoQ2 2026
+ Net income attributable to PepsiCoQ1 2026
+ Net income attributable to PepsiCoQ4 2025)
÷ (Net revenueQ3 2026
+ Net revenueQ2 2026
+ Net revenueQ1 2026
+ Net revenueQ4 2025)
= 100 × (3,048 + 2,981 + 2,327 + 2,540)
÷ (25,274 + 24,181 + 19,443 + 29,343)
= 11.09%
2 Click competitor name to see calculations.
The analysis of net profit margins reveals a period of volatility characterized by two distinct contractions followed by recovery phases, occurring alongside a consistent long-term increase in net revenue.
- Net Profit Margin Volatility
- Profitability experienced a notable decline beginning in late 2022, reaching a period low of 7.48% in March 2023. A subsequent recovery trend saw margins climb back to approximately 10% throughout 2024. A second downturn occurred in mid-2025, with margins dropping to 8.23% in June and further to 7.82% in September 2025, before another ascent began, culminating in a margin of 11.09% by September 2026.
- Revenue Growth and Scaling
- Net revenue demonstrates strong quarterly seasonality, consistently peaking in the December periods. Total revenue grew from 16.2 billion USD in March 2022 to 25.27 billion USD by September 2026. This expansion in top-line growth suggests a successful scaling of operations, although the fluctuating net profit margin indicates that cost structures did not scale linearly with revenue.
- Operational Resilience and Recovery
- The data indicates a recurring pattern of resilience, where sharp dips in margin are followed by steady recoveries. The most recent trajectory is particularly positive, as the margin increased from 8.77% in December 2025 to 11.09% in September 2026. This suggests a regained ability to convert a higher percentage of revenue into net income toward the end of the observed period.
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Return on Equity (ROE)
PepsiCo Inc., ROE calculation (quarterly data)
| Sep 5, 2026 | Jun 13, 2026 | Mar 21, 2026 | Dec 27, 2025 | Sep 6, 2025 | Jun 14, 2025 | Mar 22, 2025 | Dec 28, 2024 | Sep 7, 2024 | Jun 15, 2024 | Mar 23, 2024 | Dec 30, 2023 | Sep 9, 2023 | Jun 17, 2023 | Mar 25, 2023 | Dec 31, 2022 | Sep 3, 2022 | Jun 11, 2022 | Mar 19, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Net income attributable to PepsiCo | 3,048) | 2,981) | 2,327) | 2,540) | 2,603) | 1,263) | 1,834) | 1,523) | 2,930) | 3,083) | 2,042) | 1,302) | 3,092) | 2,748) | 1,932) | 518) | 2,702) | 1,429) | 4,261) | ||||||
| Total PepsiCo common shareholders’ equity | 22,292) | 22,098) | 21,383) | 20,406) | 19,388) | 18,418) | 18,389) | 18,041) | 19,453) | 19,446) | 19,047) | 18,503) | 18,806) | 17,685) | 17,042) | 17,149) | 18,977) | 18,553) | 18,202) | ||||||
| Profitability Ratio | |||||||||||||||||||||||||
| ROE1 | 48.88% | 47.29% | 40.84% | 40.38% | 37.26% | 40.99% | 50.95% | 53.09% | 48.10% | 48.95% | 48.22% | 49.04% | 44.08% | 44.67% | 38.62% | 51.96% | 51.19% | 49.78% | 55.85% | ||||||
| Benchmarks | |||||||||||||||||||||||||
| ROE, Competitors2 | |||||||||||||||||||||||||
| Coca-Cola Co. | 39.14% | 39.60% | 40.74% | 40.74% | 41.70% | 42.62% | 41.16% | 42.77% | 39.25% | 41.19% | 40.80% | 41.30% | 40.92% | 40.40% | 39.13% | 39.59% | 43.52% | 41.60% | 41.49% | ||||||
| Mondelēz International Inc. | 15.33% | 13.20% | 10.13% | 9.49% | 13.49% | 13.90% | 13.97% | 17.12% | 13.70% | 14.25% | 15.06% | 17.50% | 16.09% | 14.45% | 13.97% | 10.11% | 11.78% | 14.04% | 14.89% | ||||||
| Philip Morris International Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2026-09-05), 10-Q (reporting date: 2026-06-13), 10-Q (reporting date: 2026-03-21), 10-K (reporting date: 2025-12-27), 10-Q (reporting date: 2025-09-06), 10-Q (reporting date: 2025-06-14), 10-Q (reporting date: 2025-03-22), 10-K (reporting date: 2024-12-28), 10-Q (reporting date: 2024-09-07), 10-Q (reporting date: 2024-06-15), 10-Q (reporting date: 2024-03-23), 10-K (reporting date: 2023-12-30), 10-Q (reporting date: 2023-09-09), 10-Q (reporting date: 2023-06-17), 10-Q (reporting date: 2023-03-25), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-03), 10-Q (reporting date: 2022-06-11), 10-Q (reporting date: 2022-03-19).
1 Q3 2026 Calculation
ROE = 100
× (Net income attributable to PepsiCoQ3 2026
+ Net income attributable to PepsiCoQ2 2026
+ Net income attributable to PepsiCoQ1 2026
+ Net income attributable to PepsiCoQ4 2025)
÷ Total PepsiCo common shareholders’ equity
= 100 × (3,048 + 2,981 + 2,327 + 2,540)
÷ 22,292 = 48.88%
2 Click competitor name to see calculations.
The financial performance between March 2022 and September 2026 is characterized by high but volatile profitability. Return on Equity (ROE) exhibited a cyclical pattern, experiencing periods of contraction followed by recovery, while the overall equity base expanded steadily over the analyzed timeframe.
- Return on Equity (ROE) Trends
- ROE reached a peak of 55.85% in March 2022 before entering a period of fluctuation. Two significant troughs are observed: the first in March 2023 at 38.62% and a more pronounced decline in June 2025, where ROE fell to 37.26%. Following the 2025 low, a recovery trend emerged, with the ratio climbing back to 48.88% by September 2026. This suggests a resilient ability to generate returns despite periodic volatility.
- Shareholders' Equity Expansion
- Total common shareholders' equity demonstrated a consistent long-term upward trajectory, growing from 18,202 million USD in March 2022 to 22,292 million USD by September 2026. This represents a substantial increase in the capital base. The growth in equity typically exerts downward pressure on ROE unless accompanied by proportional increases in net income, which explains some of the compression seen in the 2025 figures.
- Net Income Volatility and Seasonality
- Net income attributable to the company showed significant quarterly variance. A recurring pattern of lower earnings is evident in the December quarters of 2022, 2023, and 2024, with the lowest point occurring in December 2022 at 518 million USD. Conversely, earnings typically peaked during the second and third quarters of each year. These fluctuations in net income are the primary drivers of the short-term instability observed in the quarterly ROE percentages.
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Return on Assets (ROA)
PepsiCo Inc., ROA calculation (quarterly data)
| Sep 5, 2026 | Jun 13, 2026 | Mar 21, 2026 | Dec 27, 2025 | Sep 6, 2025 | Jun 14, 2025 | Mar 22, 2025 | Dec 28, 2024 | Sep 7, 2024 | Jun 15, 2024 | Mar 23, 2024 | Dec 30, 2023 | Sep 9, 2023 | Jun 17, 2023 | Mar 25, 2023 | Dec 31, 2022 | Sep 3, 2022 | Jun 11, 2022 | Mar 19, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Net income attributable to PepsiCo | 3,048) | 2,981) | 2,327) | 2,540) | 2,603) | 1,263) | 1,834) | 1,523) | 2,930) | 3,083) | 2,042) | 1,302) | 3,092) | 2,748) | 1,932) | 518) | 2,702) | 1,429) | 4,261) | ||||||
| Total assets | 111,976) | 112,189) | 110,646) | 107,399) | 106,558) | 105,345) | 101,737) | 99,467) | 100,513) | 99,533) | 100,040) | 100,495) | 99,953) | 95,906) | 93,042) | 92,187) | 94,461) | 93,103) | 92,962) | ||||||
| Profitability Ratio | |||||||||||||||||||||||||
| ROA1 | 9.73% | 9.32% | 7.89% | 7.67% | 6.78% | 7.17% | 9.21% | 9.63% | 9.31% | 9.56% | 9.18% | 9.03% | 8.29% | 8.24% | 7.07% | 9.67% | 10.28% | 9.92% | 10.93% | ||||||
| Benchmarks | |||||||||||||||||||||||||
| ROA, Competitors2 | |||||||||||||||||||||||||
| Coca-Cola Co. | 13.55% | 13.27% | 13.15% | 12.50% | 12.29% | 11.68% | 10.60% | 10.57% | 9.80% | 10.52% | 10.85% | 10.97% | 11.04% | 10.67% | 10.13% | 10.29% | 10.73% | 10.27% | 10.96% | ||||||
| Mondelēz International Inc. | 5.68% | 4.93% | 3.67% | 3.43% | 4.95% | 5.13% | 5.22% | 6.73% | 5.29% | 5.40% | 5.53% | 6.95% | 6.48% | 5.75% | 5.42% | 3.82% | 4.61% | 5.85% | 6.17% | ||||||
| Philip Morris International Inc. | 16.05% | 15.93% | 16.10% | 16.40% | 12.87% | 12.02% | 11.68% | 11.42% | 14.70% | 13.38% | 12.20% | 11.96% | 12.74% | 13.01% | 14.04% | 14.67% | 21.48% | 22.18% | 21.62% | ||||||
Based on: 10-Q (reporting date: 2026-09-05), 10-Q (reporting date: 2026-06-13), 10-Q (reporting date: 2026-03-21), 10-K (reporting date: 2025-12-27), 10-Q (reporting date: 2025-09-06), 10-Q (reporting date: 2025-06-14), 10-Q (reporting date: 2025-03-22), 10-K (reporting date: 2024-12-28), 10-Q (reporting date: 2024-09-07), 10-Q (reporting date: 2024-06-15), 10-Q (reporting date: 2024-03-23), 10-K (reporting date: 2023-12-30), 10-Q (reporting date: 2023-09-09), 10-Q (reporting date: 2023-06-17), 10-Q (reporting date: 2023-03-25), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-03), 10-Q (reporting date: 2022-06-11), 10-Q (reporting date: 2022-03-19).
1 Q3 2026 Calculation
ROA = 100
× (Net income attributable to PepsiCoQ3 2026
+ Net income attributable to PepsiCoQ2 2026
+ Net income attributable to PepsiCoQ1 2026
+ Net income attributable to PepsiCoQ4 2025)
÷ Total assets
= 100 × (3,048 + 2,981 + 2,327 + 2,540)
÷ 111,976 = 9.73%
2 Click competitor name to see calculations.
The financial performance across the analyzed period is characterized by a steady expansion of the asset base accompanied by significant fluctuations in net income, resulting in a volatile Return on Assets (ROA) profile.
- Asset Base Expansion
- Total assets exhibited a consistent long-term upward trajectory, increasing from $92.96 billion in March 2022 to $111.98 billion by September 2026. This growth indicates a broadening of the company's operational capacity and resource investment over the observed timeframe.
- Net Income Volatility
- Net income demonstrated substantial quarterly variance. High points were recorded in March 2022 ($4.26 billion) and June 2026 ($2.98 billion), while significant troughs occurred in December 2022 ($518 million) and June 2025 ($1.26 billion). A recovery trend is observable in the final three quarters of the period, with income consistently exceeding $2.3 billion.
- Return on Assets (ROA) Trends
- The ROA experienced two distinct periods of contraction. Following an initial high of 10.93% in March 2022, the ratio dropped to 7.07% in March 2023 and reached a period low of 6.78% in June 2025. These dips correlate with the observed volatility in net income relative to the growing asset base. A sustained recovery phase began in late 2025, with the ROA climbing to 9.73% by September 2026, signaling an improvement in the efficiency of asset utilization.
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