PepsiCo, Inc. stock research
FY2026 Q2
PepsiCo (PEP) Gross Margin & Quarterly History
Explore PepsiCo, Inc. (PEP) gross margin from 2023 through the latest reported quarter, using SEC-sourced revenue, gross profit, and direct costs.
Gross margin takeaway
Quarter ended Jun 13, 2026 · FY2026 Q2
Revenue increased from both the prior quarter and the same quarter a year ago, while cost of revenue also rose, resulting in a higher gross profit. The gross margin slightly weakened compared to both periods.
- Revenue grew at a faster rate than cost of revenue relative to the prior quarter, supporting gross profit expansion, though the margin narrowed. Compared to the year-ago quarter, revenue growth outpaced cost of revenue growth, yet the margin also contracted slightly.
- Compared to the immediately preceding quarter, revenue and gross profit are higher, but gross margin is lower. Compared to the same quarter one year earlier, all three metrics—revenue, gross profit, and cost of revenue—are higher, while gross margin is lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
54.2%
Gross profit
$13.1B
Revenue
$24.2B
Cost of revenue
$11.1B
Quarter-over-quarter change
-1.0 pts
Year-over-year change
-0.4 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jun 14, 2025 | $22.7B | $12.4B | $10.3B | 54.7% |
| Sep 6, 2025 | $23.9B | $12.8B | $11.1B | 53.6% |
| Mar 21, 2026 | $19.4B | $10.7B | $8.7B | 55.2% |
| Jun 13, 2026 | $24.2B | $13.1B | $11.1B | 54.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 21, 2026
-1.0 pts
Year-over-year change
Jun 14, 2025
-0.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Revenue grew at a faster rate than cost of revenue relative to the prior quarter, supporting gross profit expansion, though the margin narrowed. Compared to the year-ago quarter, revenue growth outpaced cost of revenue growth, yet the margin also contracted slightly.
Compared to the immediately preceding quarter, revenue and gross profit are higher, but gross margin is lower. Compared to the same quarter one year earlier, all three metrics—revenue, gross profit, and cost of revenue—are higher, while gross margin is lower.
Monitor the trend in gross margin against the sequentially declining pattern observed in the current quarter.
Peer context
Latest available gross margins for related public companies.
| Company | Gross margin |
|---|---|
| PepsiCo, Inc. (PEP) | 54.2% |