What are the main concerns in PEPSICO INC's latest SEC filing?

The analysis identified 5 key concerns: Operating profit declined by 11% due to cost increases, brand impairments, lower volume, and higher acquisition costs, partially offset by productivity savings and net pricing.; Share-based compensation expense decreased significantly year-over-year, which may warrant further investigation into the reasons for the decline.; The company is involved in litigation concerning plastic pollution, with potential for significant unquantified liabilities..

What are the top risks for PEPSICO INC (PEP)?

The top risks identified in the 10-K filing are: Geopolitical and Political Instability, Supply Chain Disruptions and Cost Volatility, Regulatory and Tax Risks on Products. The company faces significant risks from geopolitical instability, supply chain disruptions, and regulatory pressures, particularly concerning product taxes. Competitive intensity and evolving consumer preferences also pose ongoing challenges.

PEP - Comprehensive Filing Intelligence

FYNone•10-K•Filed Feb 3, 2026

6.0/10

Filing Health:GOOD

Solid fundamentals with minor concerns to monitor

Executive Summary

Operating profit declined by 11% due to cost increases, brand impairments, lower volume, and higher acquisition costs, partially offset by productivity savings and net pricing.. Net revenue saw a 2% increase driven by effective net pricing and organic volume growth, though impacted by unfavorable foreign exchange translation.. The company is involved in litigation concerning plastic pollution, with potential for significant unquantified liabilities.. PFNA operating profit decreased 7%

Top Concerns

!Operating profit declined by 11% due to cost increases, brand impairments, lower volume, and higher acquisition costs, partially offset by productivity savings and net pricing.
!Share-based compensation expense decreased significantly year-over-year, which may warrant further investigation into the reasons for the decline.
!The company is involved in litigation concerning plastic pollution, with potential for significant unquantified liabilities.
!Geopolitical and Political Instability (high)
!Supply Chain Disruptions and Cost Volatility (high)

Analysis Dimensions

Our 5-pass AI analysis examines this filing across multiple dimensions. Each dimension score is derived from direct analysis of SEC filing text.

Narrative Intelligence

7.0/10

Management tone is confidently optimistic.

Full analysis includes: tone changes vs prior quarter, margin driver breakdown, forward guidance analysis, strategic priorities.

Accounting Quality

7.0/10

Earnings quality shows moderate accounting practices.

Full analysis includes: reserve and allowance changes, non-recurring item analysis, stock-based compensation impact, disclosure concerns.

Hidden Liabilities

Off-balance sheet risk is low with 0 in identified exposure.

Full analysis includes: cloud and purchase commitments, VIE/SPE exposure, covenant compliance status, refinancing risk assessment.

Risk Landscape

3.0/10

Overall risk profile shows geopolitical and political instability as primary concern.

Full analysis includes: 8 risk categories with severity, new vs escalated risks, management response assessment, risk trend analysis.

Segment Performance

5.0/10

Segment health analysis.

Full analysis includes: segment-by-segment revenue breakdown, geographic concentration risk, customer concentration analysis, segment margin trends.