Coca-Cola vs. PepsiCo: Pepsi's Revenue Dwarfs Coke's, but This Is the Number to Watch
Key Points
When reviewing the raw financial data, PepsiCo consistently registers higher absolute revenue than its primary competitor during every reported period, though Coca-Cola currently presents a smoother and more predictable upward trajectory on the top line without the recurring seasonal swings that characterize the alternative.
Over the course of the last eight comparable quarters, both companies maintained consistent year-over-year expansion, but PepsiCo exhibited notable quarter-over-quarter volatility by dropping and peaking in regular seasonal intervals, compared to the measured and gradual upward progression consistently observed at Coca-Cola.
Market watchers and prospective individual investors evaluating these historical charts should closely monitor whether the baseline numerical revenue gap between the two companies continues to hold steady at its current magnitude or begins to narrow noticeably in upcoming quarterly reporting periods.
Coca-Cola: Gradual and Steady Revenue Growth
Coca-Cola (NYSE:KO) earns its revenue by selling nonalcoholic soft drinks, concentrates, and syrups to independent bottling partners.
During the most recent period, it concluded an operational review to formally select new agency partners tasked with managing its data and marketing operations, and it partnered with hospitality resorts to provide branded consumer experiences. A law firm also announced a formal legal investigation into a reported data breach.
PepsiCo: Higher Revenue With Seasonal Fluctuations
PepsiCo (NASDAQ:PEP) earns its revenue by creating and supplying a global catalog of concentrated beverage syrups and packaged snack foods.
During the same time frame, it reached an 11-year operational agreement to formally extend its status as the exclusive beverage provider for Taco Bell, and it elected a new independent director to its board while simultaneously closing multiple regional manufacturing and warehouse facilities, resulting in localized workforce reductions.
Why Revenue Matters for Investors
Revenue here refers to the data provider's standardized income-statement revenue line item, and it helps independent investors measure total consumer demand before counting any underlying business expenses.
Coca-Cola vs. PepsiCo Revenue over the last 8 quarters. Note: for Q4 2025, the two companies' reporting periods differ in length by more than 14 days due to differing fiscal calendars, which can make the change between quarters look bigger or smaller than an apples-to-apples comparison would show.
Quarterly Revenue for Coca-Cola and PepsiCo
| Calendar quarter | Coca-Cola Revenue | PepsiCo Revenue |
|---|---|---|
| Q4 2024 | $11.5 billion (quarter ended Dec. 31, 2024) | $27.8 billion (quarter ended Dec. 31, 2024) |
| Q1 2025 | $11.1 billion (quarter ended March 28, 2025) | $17.9 billion (quarter ended March 22, 2025) |
| Q2 2025 | $12.5 billion (quarter ended June 27, 2025) | $22.7 billion (quarter ended June 14, 2025) |
| Q3 2025 | $12.5 billion (quarter ended Sept. 26, 2025) | $23.9 billion (quarter ended Sept. 6, 2025) |
| Q4 2025 | $11.8 billion (quarter ended Dec. 31, 2025) | $29.3 billion (quarter ended Dec. 27, 2025) |
| Q1 2026 | $12.5 billion (quarter ended April 3, 2026) | $19.4 billion (quarter ended March 21, 2026) |
| Q2 2026 | $13.4 billion (quarter ended July 3, 2026) | $24.2 billion (quarter ended June 13, 2026) |
| Q3 2026 | $13.4 billion (quarter ended Oct. 2, 2026) | $25.3 billion (quarter ended Sept. 5, 2026) |
Data source: Financial Modeling Prep. Note: for Q4 2025, the two companies' reporting periods differ in length by more than 14 days due to differing fiscal calendars, which can make the change between quarters look bigger or smaller than an apples-to-apples comparison would show. Data as of Nov. 2, 2026.
Foolish Take
Coca-Cola stock has returned more than 40% in 2026 as it continues to report strong business fundamentals. Renewed investor focus on consumer staples has also boosted the stock, though the same can't be said of PepsiCo, which is essentially flat year to date.
The graph above clearly illustrates Pepsi's larger absolute revenue, but that alone hasn't been enough to juice the stock this year. In its latest earnings release on Oct. 8, the company cut its 2026 core EPS outlook to 1% to 2% growth as North American beverage volumes fell modestly in the quarter. A week later, KFC confirmed it was switching from providing Pepsi to Coke products in its more than 3,700 U.S. restaurants by spring 2027. According to BofA, the account is worth about $500 million in annual sales. But beyond the roughly 3% hit to Pepsi's sales, it raises the possibility of other large accounts following suit. Earlier this year, Marriott announced it was replacing PepsiCo with Coca-Cola as its exclusive global beverage provider.
Those large accounts can move the revenue needle, but investors should also pay attention to operating margin, which measures the percentage of revenue that remains as profit after paying for the cost of goods sold (COGS) and regular operating expenses. Coca-Cola's operating margin was 33.4% in Q3, up from 32% last year. In contrast, PepsiCo's Q3 operating margin was 16.9%, an improvement over last year's 14.9%.
That difference is because Coca-Cola's business model is much more asset-light than PepsiCo's. It primarily makes and sells syrups and drink concentrates to independent bottling partners, avoiding the capital investment involved with things like building and managing factories and maintaining delivery fleets. That business model has served Coke well for years, and should allow the company to navigate macroeconomic pressures more easily.
Bank of America is an advertising partner of Motley Fool Money. Sarah Sidlow has positions in Bank of America and PepsiCo. The Motley Fool recommends Marriott International. The Motley Fool has a disclosure policy.