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Is PepsiCo's International Business Its Most Reliable Growth Engine?
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Key Takeaways
PepsiCo's international unit generated $38B in 2025, more than 40% of revenues and operating profit.
The segment posted 4.5% organic growth in 2025 and 19 straight quarters of mid-single-digit gains in Q4.
International segment's margin rose 225 bps in Q4 as foods and beverages saw broad-based global momentum.
PepsiCo Inc.’s (PEP - Free Report) international business is emerging as one of its most reliable and consistent growth engines. In 2025, the division generated $38 billion in revenues and accounted for more than 40% of total net revenues and core segment operating profit, underscoring its strategic importance. More importantly, performance has been steady and broad-based across foods and beverages.
The international segment delivered 4.5% organic revenue growth in 2025, with convenient foods up 3.5% and beverages up 7%. In the fourth quarter of 2025, the segment recorded its 19th consecutive quarter of at least mid-single-digit organic revenue growth, alongside 27% core operating profit growth and 225 basis points (bps) of margin expansion. This level of consistency contrasts with more mixed volume trends in parts of North America, reinforcing the stability of overseas markets.
Growth is also geographically diversified. Markets such as Mexico, Brazil, Argentina, India, Germany, Egypt and Thailand led food growth, while beverages saw strength in markets including Mexico, the U.K., Spain, Poland, Pakistan and Australia. Share gains across snacks and beverages in multiple countries further signal competitive momentum.
Management sees a “long runway for profitable growth,” driven by localized innovation, expanded distribution in developing markets, sharper price-pack architecture and greater participation in energy and functional categories. With resilient demand, margin expansion and sustained share gains, PepsiCo’s international business appears reliable and structurally positioned to scale further, making it the company’s most dependable growth pillar today.
Are Other Beverage Stocks Performing Well Internationally?
Many major beverage companies beyond PepsiCo have demonstrated strong international performance, though their results vary based on portfolio focus, geographic exposure and strategic initiatives. Here, we have highlighted the international business of The Coca-Cola Company (KO - Free Report) and Monster Beverage Corporation (MNST - Free Report) .
Global giants like Coca-Cola have long derived a significant portion of revenues from outside the United States. Coca-Cola’s international operations benefit from deep distribution networks, strong brand equity and localized marketing strategies that resonate across diverse cultures. Emerging markets in Asia, Latin America and Africa continue to be key drivers of volume growth and premiumization, particularly for sparkling beverages and ready-to-drink products. Coca-Cola’s international business remained a core growth driver in 2025, delivering broad-based momentum across both developed and emerging markets.
Monster Beverage’s international business is its key growth driver. In third-quarter 2025, net sales outside the United States jumped 23.3% to a record 43% of the total sales. EMEA rose 30.3%, the Asia Pacific climbed 28.7% and Latin America grew 9.3%, with margin expansion across all regions. Strong category growth, innovation like Lando Norris Zero Sugar and expanding household penetration position international markets as a durable driver.
Zacks Rundown for PEP
Shares of PepsiCo have gained 15.7% year to date compared with the industry’s growth of 13.3%.
Image Source: Zacks Investment Research
From a valuation standpoint, PEP trades at a forward price-to-earnings ratio of 19.11X compared with the industry’s average of 20.08X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for PEP’s 2026 and 2027 earnings per share implies year-over-year rallies of 5.4% and 6.7%, respectively. Estimates for 2026 and 2027 have moved north in the past 30 days.
View the Zacks #1 Rank List
Image: Bigstock
Is PepsiCo's International Business Its Most Reliable Growth Engine?
Key Takeaways
PepsiCo Inc.’s (PEP - Free Report) international business is emerging as one of its most reliable and consistent growth engines. In 2025, the division generated $38 billion in revenues and accounted for more than 40% of total net revenues and core segment operating profit, underscoring its strategic importance. More importantly, performance has been steady and broad-based across foods and beverages.
The international segment delivered 4.5% organic revenue growth in 2025, with convenient foods up 3.5% and beverages up 7%. In the fourth quarter of 2025, the segment recorded its 19th consecutive quarter of at least mid-single-digit organic revenue growth, alongside 27% core operating profit growth and 225 basis points (bps) of margin expansion. This level of consistency contrasts with more mixed volume trends in parts of North America, reinforcing the stability of overseas markets.
Growth is also geographically diversified. Markets such as Mexico, Brazil, Argentina, India, Germany, Egypt and Thailand led food growth, while beverages saw strength in markets including Mexico, the U.K., Spain, Poland, Pakistan and Australia. Share gains across snacks and beverages in multiple countries further signal competitive momentum.
Management sees a “long runway for profitable growth,” driven by localized innovation, expanded distribution in developing markets, sharper price-pack architecture and greater participation in energy and functional categories. With resilient demand, margin expansion and sustained share gains, PepsiCo’s international business appears reliable and structurally positioned to scale further, making it the company’s most dependable growth pillar today.
Are Other Beverage Stocks Performing Well Internationally?
Many major beverage companies beyond PepsiCo have demonstrated strong international performance, though their results vary based on portfolio focus, geographic exposure and strategic initiatives. Here, we have highlighted the international business of The Coca-Cola Company (KO - Free Report) and Monster Beverage Corporation (MNST - Free Report) .
Global giants like Coca-Cola have long derived a significant portion of revenues from outside the United States. Coca-Cola’s international operations benefit from deep distribution networks, strong brand equity and localized marketing strategies that resonate across diverse cultures. Emerging markets in Asia, Latin America and Africa continue to be key drivers of volume growth and premiumization, particularly for sparkling beverages and ready-to-drink products. Coca-Cola’s international business remained a core growth driver in 2025, delivering broad-based momentum across both developed and emerging markets.
Monster Beverage’s international business is its key growth driver. In third-quarter 2025, net sales outside the United States jumped 23.3% to a record 43% of the total sales. EMEA rose 30.3%, the Asia Pacific climbed 28.7% and Latin America grew 9.3%, with margin expansion across all regions. Strong category growth, innovation like Lando Norris Zero Sugar and expanding household penetration position international markets as a durable driver.
Zacks Rundown for PEP
Shares of PepsiCo have gained 15.7% year to date compared with the industry’s growth of 13.3%.
Image Source: Zacks Investment Research
From a valuation standpoint, PEP trades at a forward price-to-earnings ratio of 19.11X compared with the industry’s average of 20.08X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for PEP’s 2026 and 2027 earnings per share implies year-over-year rallies of 5.4% and 6.7%, respectively. Estimates for 2026 and 2027 have moved north in the past 30 days.
Image Source: Zacks Investment Research
PepsiCo currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.