PepsiCoXSWX:PEP 90 Gross Margin % is 55.19% as of Mar. 2026, which is 1% above its 10-year median of 54.56. GuruFocus rates XSWX:PEP with a GF Score™ of 90/100 and a GF Value™ of CHF139.75. The stock has 2 warning signs investors should review. Among 115 Beverages - Non-Alcoholic companies, PepsiCo ranks better than 86.96% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. PepsiCo's Gross Profit for the
three
months ended in Mar. 2026 was CHF8,449 Mil. PepsiCo's Revenue for the
three
months ended in Mar. 2026 was CHF15,307 Mil. Therefore, PepsiCo's Gross Margin % for the quarter that ended in Mar. 2026 was 55.19%.
The historical rank and industry rank for PepsiCo's Gross Margin % or its related term are showing as below:
XSWX:PEP'
s Gross Margin % Range Over the Past 10 Years
Min: 53.03 Med: 54.56 Max: 55.13
Current: 54.06
During the past 13 years, the highestGross Margin % of PepsiCo was 55.13%. The lowest was 53.03%. And the median was 54.56%.
XSWX:PEP's Gross Margin % is ranked better than 86.96% of 115
companies
in the Beverages - Non-Alcoholic industry
Industry Median: 38.43
vs XSWX:PEP: 54.06
PepsiCo had a gross margin of 55.19% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for PepsiCo was 0.10% per year.
PepsiCo (XSWX:PEP) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
PepsiCo had a gross margin of 55.19% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
PepsiCo Gross Margin % Related Terms
PepsiCo Gross Margin % Historical Data
* Premium members only.
The historical data trend for PepsiCo's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
XSWX:PEP vs MNST, KO, KDP: Gross Margin % Comparison
For the Beverages - Non-Alcoholic subindustry, PepsiCo's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
PepsiCo Gross Margin % vs Beverages - Non-Alcoholic Industry
For the Beverages - Non-Alcoholic industry and Consumer Defensive sector, PepsiCo's Gross Margin % distribution charts can be found below:
* The bar in red indicates where PepsiCo's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
PepsiCo (XSWX:PEP) has a Gross Margin % of 55.19% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on PepsiCo and its competitors. This is near median its historical median of 54.56. Over the past decade, PepsiCo's Gross Margin % has ranged from 53.03 to 55.13. According to the industry distribution chart, PepsiCo ranks #15 out of 115 companies in the Beverages - Non-Alcoholic industry, placing it in the top 13%.
Is PepsiCo's Gross Margin % too high?
PepsiCo's current Gross Margin % of 55.19% is near median its 10-year median of 54.56. Over the past 10 years, this metric has ranged from a low of 53.03 to a high of 55.13. The Beverages - Non-Alcoholic industry median Gross Margin % is 38.43. PepsiCo's value of 55.19% is 43.6% above this industry median. Based on the distribution chart, PepsiCo ranks #15 out of 115 companies in the Beverages - Non-Alcoholic industry, which is in the top quartile — a strong position relative to peers. Overall, PepsiCo has a GF Score™ of 90/100, reflecting its overall financial health beyond just this single metric.
How does PepsiCo's Gross Margin % compare to MNST and KO?
According to the Beverages - Non-Alcoholic industry distribution chart, PepsiCo ranks #15 out of 115 companies for Gross Margin %. This places PepsiCo in the top 13% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 38.43. PepsiCo's value of 55.19% is 43.6% above this benchmark. Historically, PepsiCo's own Gross Margin % has ranged from 53.03 to 55.13 over the past decade. While the company's 10-year median is 54.56 vs. the industry median of 38.43, PepsiCo has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Beverages - Non-Alcoholic company?
The median Gross Margin % among Beverages - Non-Alcoholic companies is 38.43, based on 115 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. PepsiCo's current Gross Margin % of 55.19% is 43.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on PepsiCo and its competitors. For the Beverages - Non-Alcoholic industry, the median Gross Margin % is 38.43 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PepsiCo's current Gross Margin % is 55.19%, which is near median its own 10-year median of 54.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PepsiCo stock overvalued right now?
PepsiCo (XSWX:PEP) has a current Gross Margin % of 55.19%. The stock's GF Value™ is CHF139.75, compared to a current price of CHF115.00 — trading 17.7% below its estimated fair value. The current Gross Margin % is 55.19%, which is near median its 10-year median of 54.56 and 43.6% above the Beverages - Non-Alcoholic industry median of 38.43. PepsiCo's overall GF Score™ is 90/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For PepsiCo (XSWX:PEP), the current Gross Margin % is 55.19% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is PepsiCo (XSWX:PEP) Overvalued in 2026?
Based on GuruFocus' analysis, PepsiCo stock appears to be undervalued.
The current stock price of CHF115.00 is trading 17.7% below its estimated GF Value™ of CHF139.75.
Key valuation signals for XSWX:PEP:
Gross Margin %: 55.19% (near median its 10-year median of 54.56)
GF Value™: CHF139.75 vs. price of CHF115.00 (17.7% below fair value)
Industry Position: 43.6% above the Beverages - Non-Alcoholic median (#15 of 115)
No single metric tells the full story. See the XSWX:PEP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
PepsiCo is a global leader in snacks and beverages, owning well-known household brands including Pepsi, Mountain Dew, Gatorade, Lay's, Cheetos, and Doritos, among others. The company dominates the global savory snacks market and also ranks as the second-largest beverage provider in the world (behind Coca-Cola) with diversified exposure to carbonated soft drinks, or CSD, as well as water, sports, and energy drink offerings. Convenience foods account for approximately 58% of its total revenue, with beverages making up the rest. Pepsi owns the bulk of its manufacturing and distribution capacity in the US, but uses bottlers overseas for beverages. International markets made up 41% of total sales and 46% of operating profits before corporate expenses in 2025.
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