How does PepsiCo (PEP) make money?

PepsiCo (PEP) generates revenue primarily from PepsiCo Beverages North America, which accounted for 30.1% of total revenue in TTM through Q2 2026. The company reported $96.9B in revenue and converted 10.8% of it into net profit, equivalent to roughly $10.5B in net income — what's left after the cost of revenue, operating expenses, interest, and income taxes.

What is the gross profit margin of PepsiCo (PEP)?

PepsiCo (PEP) reported a gross profit margin of 54% in TTM through Q2 2026, equivalent to $52.3B in gross profit on $96.9B in revenue. Gross margin measures how much of each dollar of revenue remains after the direct cost of producing or delivering the product — a higher figure typically signals pricing power, scale, or a less capital-intensive business model.

What is the operating profit margin of PepsiCo (PEP)?

PepsiCo (PEP) reported an operating profit margin of 15% in TTM through Q2 2026, equivalent to $14.5B in operating income. Operating margin captures profitability after research & development, sales & marketing, and general & administrative expenses — but before interest, taxes, and one-off items — and is the cleanest single read on the underlying business's efficiency.

What is the net profit margin of PepsiCo (PEP)?

PepsiCo (PEP) reported a net profit margin of 10.8% in TTM through Q2 2026, equivalent to $10.5B in net income. Net margin is the bottom-line share of revenue that survives every expense — operating costs, interest, and income taxes — and is the figure that flows directly into earnings per share.

Is PepsiCo (PEP) profitable?

Yes. PepsiCo (PEP) reported $10.5B in net income for TTM through Q2 2026, with a net profit margin of 10.8%. The company earned more from its operations than it paid out in costs, interest, and income taxes, leaving positive earnings on the bottom line.

How much does PepsiCo (PEP) spend on capital expenditures?

PepsiCo (PEP) spent $4.17B on capital expenditures (CapEx) during TTM through Q2 2026, roughly 4.3% of total revenue. CapEx represents long-lived investment in property, equipment, data centres, and other physical infrastructure, and is subtracted from operating cash flow to arrive at free cash flow.

How much free cash flow does PepsiCo (PEP) generate?

PepsiCo (PEP) generated $9.28B in free cash flow during TTM through Q2 2026, a free-cash-flow margin of 9.6%. Free cash flow is the cash left after capital expenditures and represents the discretionary pool the company can use to pay dividends, repurchase shares, repay debt, or fund acquisitions without raising external capital.

What is the effective tax rate of PepsiCo (PEP)?

PepsiCo (PEP) had an effective tax rate of 20.1% in TTM through Q2 2026. The effective rate is the actual share of pre-tax income paid as income taxes and can differ materially from the statutory rate due to foreign earnings mix, tax credits (such as R&D), share-based compensation deductions, and one-off discrete items.

What are the main business segments of PepsiCo (PEP)?

PepsiCo (PEP) reports revenue across 6 reportable product segments, led by PepsiCo Beverages North America at 30.1% of total revenue in TTM through Q2 2026. See the revenue-by-segment table on this page for the full breakdown and how each segment feeds into the income-statement waterfall above.

How PepsiCo Makes Money: 2026 Visual Revenue Map

PepsiCo (PEP) Income Statement Flow — TTM through Q2 2026

Calculated from the four most recent reported quarters, ending June 13, 2026 (reported July 9, 2026).

PepsiCo discloses geographic revenue only in annual filings. to view the full breakdown.

PepsiCo (PEP) Revenue by Product Segment — TTM through Q2 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported segments changed mid-year.

Revenue contribution by product segment for PepsiCo (PEP), TTM through Q2 2026.
Segment	Revenue (USD)	% of total
PepsiCo Beverages North America	$29.1B	30.1%
PepsiCo Foods North America	$27.6B	28.4%
Africa, Middle East and South Asia	$19B	19.6%
Latin America (Segment)	$11.1B	11.5%
International Beverage Franchise	$5.33B	5.5%
Asia Pacific, Australia and New Zealand, and China Region	$4.75B	4.9%
Total	$96.9B	100%

PepsiCo Beverages North America$29.1B
PepsiCo Foods North America$27.6B
Africa, Middle East and South Asia$19B
Latin America (Segment)$11.1B
International Beverage Franchise$5.33B
Asia Pacific, Australia and New Zealand, and China Region$4.75B
Total$96.9B

Revenue Breakdown — TTM through Q2 2026

In TTM through Q2 2026, PepsiCo (PEP) reports revenue across 6 reportable product segments; the largest segment was PepsiCo Beverages North America at 30.1%, followed by PepsiCo Foods North America (28.4%) and Africa, Middle East and South Asia (19.6%).

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