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How PepsiCo (PEP) makes money
PepsiCo (PEP) made $25.3B of revenue in the third quarter 2026 (Q3 2026), +6% from a year earlier. Of every dollar of revenue, 54¢ was left as gross profit, 17¢ was left as operating profit, 12¢ was left as net earnings.
Drawing the Sankey…
Where each dollar of revenue goes
| Line | Q3 2026 | % of revenue |
|---|---|---|
| Revenue | $25.3B | 100.0% |
| Cost of revenue | $11.5B | 45.6% |
| Gross profit | $13.8B | 54.4% |
| Operating expenses | $9.5B | 37.6% |
| Operating profit | $4.3B | 16.9% |
| Income tax | $834M | 3.3% |
| Net earnings | $3.1B | 12.1% |
| Operating cash flow | $5.6B | 22.1% |
| Free cash flow | $4.7B | 18.5% |
Revenue, quarter by quarter
| Quarter | Revenue | Y/Y |
|---|---|---|
| Q3 2026 | $25.3B | +6% |
| Q2 2026 | $24.2B | +6% |
| Q1 2026 | $19.4B | +8% |
| Q4 2025 | $29.3B | +6% |
| Q3 2025 | $23.9B | +3% |
| Q2 2025 | $22.7B | +1% |
| Q4 2024 | $27.8B | -0.2% |
From PepsiCo's 10-Q filed Oct 8, 2026 (on EDGAR).
Questions
How does PepsiCo make money?
PepsiCo (PEP) made $25.3B of revenue in the third quarter 2026 (Q3 2026), +6% from a year earlier. Of every dollar of revenue, 54¢ was left as gross profit, 17¢ was left as operating profit, 12¢ was left as net earnings.
What is PepsiCo's profit margin?
Net earnings were $3.1B, 12.1% of revenue, in the third quarter 2026; the operating margin was 16.9%.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.