Coca-Cola (KO) and PepsiCo (PEP) both show revenue growth over the FY2022–FY2025 period, but their profitability trajectories diverge sharply 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 from $25.0B [KO:Q12] to $29.5B [KO:Q15], implying a gross margin of roughly 61.6% in FY2025—meaningfully higher than PEP's $50.9B gross profit [PEP:Q15] on $93.9B in revenue, or about 54.1%, reflecting PEP's heavier exposure to lower-margin food and beverage manufacturing. The most striking divergence is at the bottom line in FY2025: KO's net income surged to $13.1B [KO:Q7] (a net margin of ~27.3%), while PEP's net income declined to approximately $8.2B [PEP:Q7] (a net margin of roughly 8.8%), down from around $9.6B in FY2024 [PEP:Q6]—though it should be noted that the PEP citation anchors for these figures are not fully enumerated in the available citations block, even as the underlying numbers are confirmed by direct XBRL retrieval. Operating income tells a similar story—KO's operating income jumped to $13.8B in FY2025 [KO:Q11] after a dip to $10.0B in FY2024 [KO:Q10], whereas PEP's operating income declined to $11.5B in FY2025 [PEP:Q11] from a peak of $12.9B in FY2024 [PEP:Q10]. Overall, KO demonstrates superior margin quality and a strong FY2025 earnings rebound, while PEP faces margin compression despite its larger revenue base.
KO: Coca-Cola delivered a strong profitability rebound in FY2025, with net income reaching $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%—the highest in the four-year window shown. Its gross margin of roughly 61.6% [KO:Q15] reflects the premium pricing power of its concentrate-heavy business model, and the FY2025 results represent a meaningful recovery from the operating income dip seen in FY2024 [KO:Q10].
PEP: PepsiCo's profitability came under pressure in FY2025, with net income declining to approximately $8.2B [PEP:Q7] from around $9.6B in FY2024 [PEP:Q6], and operating income falling to $11.5B [PEP:Q11] from a peak of $12.9B [PEP:Q10], even as revenues grew modestly to $93.9B [PEP:Q3]. While PEP's absolute gross profit of $50.9B [PEP:Q15] dwarfs KO's in dollar terms, its gross and net margins trail KO's considerably, reflecting the cost pressures inherent in its diversified snack and beverage portfolio. (Note: PEP net income citation tags are not fully enumerated in the available citations block; figures are confirmed via direct XBRL retrieval but independent sourcing-chain verification is limited.)
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