Statement of Comprehensive Income
Comprehensive income is the change in equity (net assets) of a business enterprise during a period from transactions and other events and circumstances from non-owners sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.
PepsiCo Inc., consolidated statement of comprehensive income
US$ in millions
Based on: 10-K (reporting date: 2025-12-27), 10-K (reporting date: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25).
Net income demonstrated a generally positive trajectory from 2021 to 2024, increasing from US$7,679 million to US$9,626 million. However, 2025 witnessed a decline in net income to US$8,295 million. While still substantial, this represents a reversal of the prior upward trend. Comprehensive income mirrored this pattern, exhibiting growth through 2023, a dip in 2024, and a significant increase in 2025.
- Net Income Trend
- The period between 2021 and 2024 showed consistent growth in net income, averaging approximately 7.8% year-over-year. The 2025 figure represents a decrease of approximately 13.9% from 2024, warranting further investigation into potential contributing factors.
- Currency Translation Adjustments
- Net currency translation adjustments were consistently negative from 2021 to 2023, indicating that the translation of financial results from foreign subsidiaries into the reporting currency negatively impacted overall income. The magnitude of these negative adjustments increased significantly in 2022 and again in 2024, reaching US$1,962 million. A substantial positive adjustment of US$1,723 million occurred in 2025, offsetting prior negative impacts and contributing to the overall increase in comprehensive income.
- Hedge and Pension Adjustments
- Net changes on cash flow hedges were relatively small and fluctuated between gains and losses throughout the period. Net pension and retiree medical adjustments exhibited more volatility. A significant gain was recorded in 2021, followed by a smaller gain in 2022, a substantial loss in 2023, a minimal gain in 2024, and a large gain in 2025. These adjustments suggest potential changes in actuarial assumptions or plan performance impacting these obligations.
- Other Comprehensive Income (Loss)
- Other comprehensive income (loss), net of taxes, demonstrated considerable fluctuation. After positive results in 2021 and 2022, it turned negative in 2023 and experienced a substantial loss in 2024. A significant positive swing occurred in 2025, largely driven by the currency translation adjustment and changes in available-for-sale debt securities.
- Comprehensive Income Attributable to Noncontrolling Interests
- Comprehensive income attributable to noncontrolling interests remained consistently negative, though relatively stable, throughout the period, ranging from US$48 million to US$81 million. This indicates that the performance of consolidated entities with noncontrolling interests generally detracted from overall comprehensive income.
- Overall Comprehensive Income
- Comprehensive income, attributable to PepsiCo, generally followed the trend of net income, with growth through 2023, a decline in 2024, and a substantial increase in 2025. The 2025 figure of US$10,828 million represents the highest value over the observed period, largely due to the positive impact of currency translation adjustments and other comprehensive income components.
The significant fluctuations in other comprehensive income components, particularly currency translation adjustments and pension adjustments, demonstrate a considerable impact on overall comprehensive income. While net income provides a core measure of profitability, the comprehensive income figure offers a more complete picture of the company’s financial performance, accounting for various gains and losses not reflected in the net income calculation.