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Compare Coca-Cola and PepsiCo on profitability and growth.

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Report

Growth

Both KO and PEP have posted steady top-line growth over the FY2022–FY2025 period, though at different scales and rates. KO grew revenues from $43.0B in FY2022 [KO:Q0] to $47.9B in FY2025 [KO:Q3], representing cumulative growth of roughly 11.5% over three years, with each year adding incrementally: $45.8B in FY2023 [KO:Q1], $47.1B in FY2024 [KO:Q2], and $47.9B in FY2025 [KO:Q3]. PEP, operating at roughly twice KO's revenue base, grew from $86.4B in FY2022 [PEP:Q0] to $93.9B in FY2025 [PEP:Q3], a cumulative gain of about 8.7%, with the bulk of that growth front-loaded in FY2023 ($91.5B [PEP:Q1]) and only modest incremental gains in FY2024 ($91.9B [PEP:Q2]) and FY2025 ($93.9B [PEP:Q3]). In percentage terms, KO has demonstrated slightly stronger compounding momentum across this window, while PEP's growth has decelerated noticeably after FY2023.

KO: Coca-Cola has delivered consistent annual revenue growth, rising from $43.0B in FY2022 [KO:Q0] to $47.9B in FY2025 [KO:Q3], a cumulative increase of approximately 11.5% with no year showing a decline. Growth has been relatively steady year-over-year, suggesting durable pricing power and volume resilience across its beverage portfolio.

PEP: PepsiCo's revenue trajectory shows strong initial growth—jumping from $86.4B in FY2022 [PEP:Q0] to $91.5B in FY2023 [PEP:Q1]—but has since plateaued, with FY2024 revenues of $91.9B [PEP:Q2] nearly flat versus FY2023 before a modest recovery to $93.9B in FY2025 [PEP:Q3]. This deceleration suggests PEP may be facing greater headwinds from volume softness or pricing normalization in its diversified food and beverage segments.


Profitability

Coca-Cola (KO) and PepsiCo (PEP) both show revenue growth over the FY2022–FY2025 period, but their profitability profiles diverge meaningfully, particularly in the most recent year. KO grew revenues from $43.0B in FY2022 [KO:Q0] to $47.9B in FY2025 [KO:Q3], while PEP operates at a much larger scale, expanding from $86.4B [PEP:Q0] to $93.9B [PEP:Q3]. On gross margin, KO's gross profit rose to approximately $29.5B [KO:Q15], implying a gross margin of roughly 61.6% in FY2025—meaningfully higher than PEP's gross profit of approximately $50.9B [PEP:Q15] on $93.9B in revenue, or about 54.1%, reflecting PEP's heavier exposure to lower-margin food and beverage manufacturing.

At the bottom line, KO's net income reached $13.1B [KO:Q7] in FY2025 (a net margin of ~27.3%), while PEP's net income declined to $8.2B [PEP:Q7] from $9.6B in FY2024 [PEP:Q6] (a net margin of ~8.8%). It is worth noting that both of these year-over-year swings may be influenced by non-recurring items—KO's operating income rose sharply to $13.8B [KO:Q11] from $10.0B in FY2024 [KO:Q10], a magnitude of increase that is atypical for a mature beverage company and may partly reflect one-time gains rather than purely organic operational improvement. Similarly, PEP's earnings decline may be driven in part by non-recurring charges such as impairments or restructuring costs, rather than solely by underlying margin deterioration—a distinction that materially affects how the FY2025 results should be interpreted. Overall, KO demonstrates superior margin quality across gross, operating, and net measures, while PEP faces profitability headwinds despite its larger revenue base.

KO: Coca-Cola posted strong FY2025 profitability metrics, with net income of $13.1B [KO:Q7] and operating income of $13.8B [KO:Q11] on revenues of $47.9B [KO:Q3], translating to a net margin of approximately 27.3%. Its gross margin of roughly 61.6% [KO:Q15] reflects the premium pricing power of its concentrate-heavy business model. The scale of the FY2025 operating income improvement relative to FY2024 [KO:Q10] is notable, though investors should consider whether non-recurring items contributed to the magnitude of the rebound.

PEP: PepsiCo's profitability came under pressure in FY2025, with net income declining to $8.2B [PEP:Q7] from $9.6B in FY2024 [PEP:Q6], and operating income falling to $11.5B [PEP:Q11] from $12.9B [PEP:Q10], even as revenues grew modestly to $93.9B [PEP:Q3]. While PEP's absolute gross profit of approximately $50.9B [PEP:Q15] exceeds KO's in dollar terms, its gross and net margins trail KO's considerably. The earnings decline may reflect a combination of structural cost pressures in its diversified snack and beverage portfolio and potentially non-recurring charges; distinguishing between these factors is important for assessing PEP's underlying earnings trajectory.


Cross-Axis Takeaway

Critic flags (3)

weakly_supportedprofitability
KO's operating income jumped to $13.8B in FY2025 after a dip to $10.0B in FY2024, described as a 'strong FY2025 earnings rebound'
The dollar figures are correct ($13.762B and $9.992B confirmed), but a ~38% YoY surge in operating income is atypical for a mature beverage company and likely includes non-recurring items. The analyst presents this as straightforward operational improvement without flagging the risk of one-time gains inflating the FY2025 result.
weakly_supportedprofitability
PEP's net income fell to $8.2B in FY2025, described as a 'sharp reversal' from $9.6B in FY2024
The figures are correct ($8.240B vs $9.578B confirmed), but the narrative attributes this to margin compression without noting that the decline may be driven by non-recurring charges (e.g., impairments, restructuring) rather than underlying operational deterioration. This distinction materially affects the interpretation.
unsupportedprofitability
Citations cover all major profitability metrics discussed
The citation list references only us-gaap:Revenues and us-gaap:NetIncomeLoss for KO, and omits all citations for: KO GrossProfit, KO OperatingIncomeLoss, PEP GrossProfit, PEP OperatingIncomeLoss, and PEP NetIncomeLoss — all of which are central quantitative claims in the axis narrative.

Cross-axis notes

Both axes rely on the same revenue figures (KO and PEP FY2022–FY2025), which are internally consistent — no contradictions between growth and profitability revenue citations.
The growth axis correctly notes PEP's post-FY2023 deceleration; the profitability axis reinforces this with declining operating and net income in FY2025, providing coherent cross-axis support.
Neither axis addresses the composition of KO's FY2025 earnings spike (operating income up ~38% YoY from $9.99B to $13.76B) — an unusually large jump that warrants scrutiny for non-recurring items and is a shared blind spot across both axes.
PEP's operating income in FY2022 ($11.512B) and FY2025 ($11.498B) are nearly identical, meaning PEP's operating profitability has gone nowhere over three years despite ~8.7% revenue growth — a cross-axis insight neither the growth nor profitability axis surfaces explicitly.
KO's gross margin trend (FY2022: 58.1%, FY2025: 61.6%) shows meaningful expansion over the period, while PEP's gross margin is relatively flat (FY2022: 53.0%, FY2025: 54.2%) — the profitability axis notes the FY2025 snapshot but neither axis discusses the multi-year margin trajectory.

Citations (40)

quant KO FY2022
us-gaap:Revenues = $43.00B
quant KO FY2023
us-gaap:Revenues = $45.75B
quant KO FY2024
us-gaap:Revenues = $47.06B
quant KO FY2025
us-gaap:Revenues = $47.94B
quant PEP FY2022
us-gaap:Revenues = $86.39B
quant PEP FY2023
us-gaap:Revenues = $91.47B
quant PEP FY2024
us-gaap:Revenues = $91.85B
quant PEP FY2025
us-gaap:Revenues = $93.92B
quant KO FY2022
us-gaap:Revenues = $43.00B
quant KO FY2023
us-gaap:Revenues = $45.75B
quant KO FY2024
us-gaap:Revenues = $47.06B
quant KO FY2025
us-gaap:Revenues = $47.94B
quant KO FY2022
us-gaap:NetIncomeLoss = $9.54B
quant KO FY2023
us-gaap:NetIncomeLoss = $10.71B
quant KO FY2024
us-gaap:NetIncomeLoss = $10.63B
quant KO FY2025
us-gaap:NetIncomeLoss = $13.11B
quant KO FY2022
us-gaap:OperatingIncomeLoss = $10.91B
quant KO FY2023
us-gaap:OperatingIncomeLoss = $11.31B
quant KO FY2024
us-gaap:OperatingIncomeLoss = $9.99B
quant KO FY2025
us-gaap:OperatingIncomeLoss = $13.76B
quant KO FY2022
us-gaap:GrossProfit = $25.00B
quant KO FY2023
us-gaap:GrossProfit = $27.23B
quant KO FY2024
us-gaap:GrossProfit = $28.74B
quant KO FY2025
us-gaap:GrossProfit = $29.54B
quant PEP FY2022
us-gaap:Revenues = $86.39B
quant PEP FY2023
us-gaap:Revenues = $91.47B
quant PEP FY2024
us-gaap:Revenues = $91.85B
quant PEP FY2025
us-gaap:Revenues = $93.92B
quant PEP FY2022
us-gaap:NetIncomeLoss = $8.91B
quant PEP FY2023
us-gaap:NetIncomeLoss = $9.07B
quant PEP FY2024
us-gaap:NetIncomeLoss = $9.58B
quant PEP FY2025
us-gaap:NetIncomeLoss = $8.24B
quant PEP FY2022
us-gaap:OperatingIncomeLoss = $11.51B
quant PEP FY2023
us-gaap:OperatingIncomeLoss = $11.99B
quant PEP FY2024
us-gaap:OperatingIncomeLoss = $12.89B
quant PEP FY2025
us-gaap:OperatingIncomeLoss = $11.50B
quant PEP FY2022
us-gaap:GrossProfit = $45.82B
quant PEP FY2023
us-gaap:GrossProfit = $49.59B
quant PEP FY2024
us-gaap:GrossProfit = $50.11B
quant PEP FY2025
us-gaap:GrossProfit = $50.86B