PepsiCoXTER:PEP +0.23%86 Net Margin % is 11.97% as of Mar. 2026, which is 19% above its 10-year median of 10.10. GuruFocus rates XTER:PEP with a GF Score™ of 86/100 and a GF Value™ of €151.19 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 115 Beverages - Non-Alcoholic companies, PepsiCo ranks better than 64.35% on this metric.
Net margin is calculated as Net Income divided by its Revenue. PepsiCo's Net Income for the
three
months ended in Mar. 2026 was €2,013 Mil. PepsiCo's Revenue for the
three
months ended in Mar. 2026 was €16,818 Mil. Therefore, PepsiCo's net margin for the quarter that ended in Mar. 2026 was 11.97%.
The historical rank and industry rank for PepsiCo's Net Margin % or its related term are showing as below:
XTER:PEP'
s Net Margin % Range Over the Past 10 Years
Min: 7.65 Med: 10.1 Max: 19.35
Current: 9.15
XTER:PEP's Net Margin % is ranked better than 64.35% of 115
companies
in the Beverages - Non-Alcoholic industry
Industry Median: 6.57
vs XTER:PEP: 9.15
PepsiCo (XTER:PEP) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
PepsiCo Net Margin % Related Terms
PepsiCo Net Margin % Historical Data
* Premium members only.
The historical data trend for PepsiCo's Net 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.
XTER:PEP vs MNST, KO, KDP: Net Margin % Comparison
For the Beverages - Non-Alcoholic subindustry, PepsiCo's Net Margin %, along with its competitors' market caps and Net 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 Net Margin % vs Beverages - Non-Alcoholic Industry
For the Beverages - Non-Alcoholic industry and Consumer Defensive sector, PepsiCo's Net Margin % distribution charts can be found below:
* The bar in red indicates where PepsiCo's Net 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.
PepsiCo (XTER:PEP) has a Net Margin % of 11.97% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on PepsiCo and its competitors. This is 19% above median its historical median of 10.10. Over the past decade, PepsiCo's Net Margin % has ranged from 7.65 to 19.35. According to the industry distribution chart, PepsiCo ranks #41 out of 115 companies in the Beverages - Non-Alcoholic industry, placing it in the top 35.7%.
Is PepsiCo's Net Margin % too high?
PepsiCo's current Net Margin % of 11.97% is 19% above median its 10-year median of 10.10. Over the past 10 years, this metric has ranged from a low of 7.65 to a high of 19.35. The Beverages - Non-Alcoholic industry median Net Margin % is 6.57. PepsiCo's value of 11.97% is 82.2% above this industry median. Based on the distribution chart, PepsiCo ranks #41 out of 115 companies in the Beverages - Non-Alcoholic industry, which is above the industry midpoint. Overall, PepsiCo has a GF Score™ of 86/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does PepsiCo's Net Margin % compare to MNST and KO?
According to the Beverages - Non-Alcoholic industry distribution chart, PepsiCo ranks #41 out of 115 companies for Net Margin %. This puts PepsiCo in the upper half of its industry. The industry median Net Margin % is 6.57. PepsiCo's value of 11.97% is 82.2% above this benchmark. Historically, PepsiCo's own Net Margin % has ranged from 7.65 to 19.35 over the past decade. While the company's 10-year median is 10.10 vs. the industry median of 6.57, 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 Net Margin % for a Beverages - Non-Alcoholic company?
The median Net Margin % among Beverages - Non-Alcoholic companies is 6.57, based on 115 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. PepsiCo's current Net Margin % of 11.97% is 82.2% 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on PepsiCo and its competitors. For the Beverages - Non-Alcoholic industry, the median Net Margin % is 6.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PepsiCo's current Net Margin % is 11.97%, which is 19% above median its own 10-year median of 10.10. 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?
Based on GuruFocus' analysis, PepsiCo (XTER:PEP) is currently considered Modestly Undervalued. The stock's GF Value™ is €151.19, compared to a current price of €124.24 — trading 17.8% below its estimated fair value. The current Net Margin % is 11.97%, which is 19% above median its 10-year median of 10.10 and 82.2% above the Beverages - Non-Alcoholic industry median of 6.57. PepsiCo's overall GF Score™ is 86/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For PepsiCo (XTER:PEP), the current Net Margin % is 11.97% 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 (XTER:PEP) Overvalued in 2026?
Based on GuruFocus' analysis, PepsiCo stock appears to be undervalued.
The current stock price of €124.24 is trading 17.8% below its estimated GF Value™ of €151.19.
GuruFocus considers PepsiCo to be Modestly Undervalued.
Key valuation signals for XTER:PEP:
Net Margin %: 11.97% (19% above median its 10-year median of 10.10)
GF Value™: €151.19 vs. price of €124.24 (17.8% below fair value)
Industry Position: 82.2% above the Beverages - Non-Alcoholic median (#41 of 115)
No single metric tells the full story. See the XTER: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.
86GF Score
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