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How the businesses differ
Coca-Cola sells beverage products internationally and is principally a beverage business. PepsiCo’s portfolio spans both beverages and convenient foods, so its results also reflect snack and food categories that are not part of Coca-Cola’s core business. This difference matters when comparing growth and risk: the companies are not simply two versions of the same soft-drink producer.
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Both companies have long dividend-growth records, but those records do not guarantee future increases. The dividend still depends on each company’s future performance and board decisions.
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What their latest reported quarters showed
The latest reported periods in the companies’ releases were both described as Q2 2026, but they did not cover identical dates or reporting lengths. Coca-Cola reported a calendar quarter; PepsiCo reported a 12-week period. Their company-defined non-GAAP measures may also differ, so the figures below are informative rather than perfectly like-for-like.
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| Measure | Coca-Cola (KO) | PepsiCo (PEP) |
|---|---|---|
| Period and release date | Quarter ended July 3, 2026; release dated July 28, 2026 (The Coca-Cola Company Q2 release) | 12 weeks ended June 13, 2026; release dated July 9, 2026 (PepsiCo Q2 release) |
| Revenue | Net revenue grew 7% to $13.4 billion; organic revenue, a non-GAAP measure, grew 6% (company release) | Net revenue increased 6.4%; organic revenue, a company-defined non-GAAP measure, increased 2.4% (company release) |
| Volume and earnings | Global unit case volume grew 5%; reported EPS rose 16% to $1.03, and comparable EPS, a non-GAAP measure, rose 11% to $0.97 (company release) | Reported EPS rose 137%, while core EPS increased 4% and core constant-currency EPS increased 1% (company release) |
| Other operating detail | Operating income grew 9%; operating margin was 34.9%, versus 34.1% a year earlier. Year-to-date operating cash flow was $7.5 billion and free cash flow, a non-GAAP measure, was $6.9 billion (company release) | The company affirmed its fiscal 2026 guidance. CEO Ramon Laguarta said organic volume had increased year-to-date at the highest rate since 2022; that is management commentary (company release) |
For PepsiCo, the 137% rise in reported EPS should not be read as the underlying growth rate: core EPS rose 4%. Coca-Cola’s release attributed comparable margin improvement to organic revenue growth, lower operating expenses and currency tailwinds, partly offset by higher input costs and increased marketing investment. CEO Henrique Braun characterized Coca-Cola’s quarter as “another strong quarter” in the July 28, 2026 release; that statement is management’s assessment, not an independent evaluation.
Dividends: annual payments and growth records
The companies announced different 2026 annualized per-share dividends. Coca-Cola’s $2.12 annualized rate followed a February 2026 board approval of a $0.53 quarterly dividend, up from $2.04 for 2025. In July 2026, its board approved another $0.53 quarterly payment, payable October 1 to shareholders of record September 15. The company’s FY2025 Form 10-K described the February increase as its 64th consecutive annual dividend increase.
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PepsiCo announced on February 3, 2026 that it was raising its annualized dividend 4%, from $5.69 to $5.92 per share, effective with the dividend expected in June 2026. Its 2025 annual report described the increase as the 54th consecutive annual increase. Under the plan then in place, PepsiCo expected to return approximately $8.9 billion to shareholders in 2026: about $7.9 billion in dividends and $1.0 billion in share repurchases. That was a company plan, not a completed full-year total.
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The annualized dollar amounts alone do not show which stock pays more relative to its share price. The dated yield comparison below addresses that, but it is only a market snapshot.
Valuation and indicated yield at the October 2, 2026 close
StockAnalysis reported the following prices, indicated yields and P/E ratios for the October 2, 2026 close. Trailing P/E uses past earnings; forward P/E depends on earnings estimates, which can change. These are secondary-provider figures, not intrinsic-value estimates.
| Market measure | Coca-Cola (KO) | PepsiCo (PEP) |
|---|---|---|
| Closing share price | $85.65 (StockAnalysis, October 2, 2026 close) | $125.89 (StockAnalysis, October 2, 2026 close) |
| Indicated annual dividend yield | 2.48% (StockAnalysis, October 2, 2026 snapshot) | 4.70% (StockAnalysis, October 2, 2026 snapshot) |
| Trailing P/E | 25.74 (StockAnalysis, October 2, 2026 snapshot) | 16.50 (StockAnalysis, October 2, 2026 snapshot) |
| Forward P/E | 25.20 (StockAnalysis, October 2, 2026 snapshot; estimate-based) | 14.51 (StockAnalysis, October 2, 2026 snapshot; estimate-based) |
At that close, PepsiCo had the higher indicated yield and lower quoted earnings multiples. A higher yield is not a guaranteed return, and a lower P/E does not by itself establish that a stock is undervalued. The market figures can move as prices and earnings estimates change. A full payout-ratio or fair-value comparison would also require consistent earnings or cash-flow measures and explicit assumptions; the figures above do not establish personalized fair value.
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Risks each company identifies
Both companies disclose risks that can affect results, including economic conditions, inflation and input costs, foreign-exchange movements, competition, regulation, and geopolitical or country-level developments. Being a consumer-staples company does not eliminate exposure to changing costs, demand or markets.
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- Coca-Cola: Its disclosures include health-related concerns associated with obesity and chronic disease, currency and political risks across international markets, trade and tariff effects, and an ongoing U.S. tax dispute.
- PepsiCo: Its disclosures emphasize economic and geopolitical instability in markets where it operates, as well as risks across its food-and-beverage operations.
These are risks the companies disclose, not predictions that any particular event will occur. PepsiCo’s broader portfolio adds food and snack business drivers to its beverage exposure; it does not make the company immune to the shared pressures above.
How to decide between KO and PEP
- If current indicated yield is your priority: PepsiCo had the higher quoted yield in the October 2, 2026 snapshot. Consider that figure alongside the company’s earnings and cash generation, not as a stand-alone measure of dividend safety.
- If the latest reported growth is your priority: Coca-Cola reported stronger Q2 organic revenue growth and comparable EPS growth in the cited releases. The reporting periods and non-GAAP definitions differ, so this is a directional comparison, not a controlled like-for-like test.
- If business mix matters most: Coca-Cola is the more focused beverage business; PepsiCo combines beverages and convenient foods. Decide which set of business drivers better matches your expectations and risk tolerance.
- If valuation is decisive: Compare ratios on the same date and basis, and assess what earnings estimates imply. The October 2 P/E figures describe the market snapshot; they do not determine what either stock is worth.
The relevant company sources for these facts are The Coca-Cola Company’s FY2025 Form 10-K and 2026 Q2 release, PepsiCo’s 2025 annual report and 2026 Q2 release, and StockAnalysis’s dated market pages. The cited company releases are quarterly results, not full-year 2026 results; refresh market data and dividend declarations before relying on them for a current investment decision.
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Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
