PepsiCo (PEP) risk factors, FY2025 10-K

PepsiCo's FY2025 10-K, filed Feb 03, 2026, lists 29 risk factors in 3 groups. Against the prior year's 30: 1 new, 2 dropped, 14 substantially reworded.

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Risk factors listed
293 groups
New this year
1vs 30 last year
Dropped
2since the prior 10-K
Substantially reworded
14of those kept
Section length
10k wordsItem 1A

What the changes say

  • PepsiCo added supplier and commodity price instability risks while refining global tax minimums and litigation exposures.
  • Cybersecurity and enterprise system deployment risks were dropped.

What changed since the prior 10-K

New

  • NewBusiness Risks

    instability of our key suppliers. Any sustained or significant disruption in the future to the manufacturing or sourcing of products or materials could increase our costs and interrupt product supply, which can adversely impact our business

    The company faces supply chain disruptions and cost inflation from agricultural commodities, fuel, recycled PET packaging, labor shortages, and geopolitical tariffs.

Dropped

  • DroppedBusiness Risks

    subject to failure, disruption or unavailability, and increased vulnerability to cyberattacks and other cyber incidents

  • DroppedBusiness Risks

    remediation costs, damage to our reputation or have a negative impact on employee morale, all of which can adversely affect our business

Reworded

  • 89% rewrittenBusiness Risks

    Future cyber incidents and other disruptions to our information systems can adversely affect our business

    Rearranged wording regarding security incidents, systems disruptions, shutdowns, and degraded performance.

  • 68% rewrittenBusiness Risks

    Disruption of our manufacturing operations or supply chain, including increased commodity, packaging, transportation, labor and other input costs, can adversely affect our business

    Adjusted phrasing on manufacturing and supply chain disruptions caused by military conflicts and raw material shortages.

  • 49% rewrittenBusiness Risks

    Changes in the retail landscape or in sales to any key customer can adversely affect our business

    Removed references to expanding direct-to-consumer e-commerce capabilities.

  • 43% rewrittenBusiness Risks

    Our reliance on third-party service providers and enterprise-wide systems can have an adverse effect on our business

    Retained third-party service provider risks with minor structural phrasing adjustments.

  • 40% rewrittenLegal, Tax and Regulatory Risks

    Increases in income tax rates, changes in income tax laws or disagreements with tax authorities can adversely affect our financial performance

    Updated global minimum tax timeline expectation to the end of 2026 and noted increased taxes will negatively impact provisions.

  • 36% rewrittenLegal, Tax and Regulatory Risks

    Potential liabilities and costs from litigation, claims, legal or regulatory proceedings, inquiries or investigations can have an adverse impact on our business

    Added shareholder-initiated actions and processing matters to the scope of potential litigation and legal proceedings.

  • 35% rewrittenLegal, Tax and Regulatory Risks

    Limitations on the marketing or sale of our products can adversely affect our business and financial performance

    Expanded marketing limitations risk to include certain product attributes alongside ingredients and packaging.

  • 33% rewrittenLegal, Tax and Regulatory Risks

    Taxes aimed at our products can adversely affect our business or financial performance

    Maintained beverage tax risk language with minor stylistic adjustments.

  • 31% rewrittenBusiness Risks

    Reduction in future demand for our products would adversely affect our business

  • 26% rewrittenBusiness Risks

    Damage to our reputation or brand image can adversely affect our business

  • 25% rewrittenLegal, Tax and Regulatory Risks

    Failure to comply with personal data protection and privacy laws can adversely affect our business

  • 22% rewrittenLegal, Tax and Regulatory Risks

    Laws and regulations related to the use or disposal of plastics or other packaging materials can adversely affect our business and financial performance

  • 22% rewrittenBusiness Risks

    Any inability to compete effectively can adversely affect our business

  • 21% rewrittenLegal, Tax and Regulatory Risks

    Failure to comply with laws and regulations applicable to our business can adversely affect our business

All 29 risk factors

Headings as the filing states them, in filing order.

Business Risks

  1. 01Reduction in future demand for our products would adversely affect our business31% rewritten
  2. 02Damage to our reputation or brand image can adversely affect our business26% rewritten
  3. 03Product recalls or other issues or concerns with respect to product quality and safety can adversely affect our business
  4. 04Any inability to compete effectively can adversely affect our business22% rewritten
  5. 05Failure to attract, develop and maintain a highly skilled workforce or effectively manage changes in our workforce can have an adverse effect on our business
  6. 06Water scarcity can adversely affect our business
  7. 07Changes in the retail landscape or in sales to any key customer can adversely affect our business49% rewritten
  8. 08Disruption of our manufacturing operations or supply chain, including increased commodity, packaging, transportation, labor and other input costs, can adversely affect our business68% rewritten
  9. 09instability of our key suppliers. Any sustained or significant disruption in the future to the manufacturing or sourcing of products or materials could increase our costs and interrupt product supply, which can adversely impact our businessNew
  10. 10Political, social and geopolitical conditions can adversely affect our business
  11. 11Our business can be adversely affected if we are unable to grow in developing and emerging markets
  12. 12Changes in economic conditions can adversely impact our business
  13. 13Future cyber incidents and other disruptions to our information systems can adversely affect our business89% rewritten
  14. 14Failure to successfully complete or manage strategic transactions can adversely affect our business
  15. 15Our reliance on third-party service providers and enterprise-wide systems can have an adverse effect on our business43% rewritten
  16. 16Climate change or measures to address climate change and other sustainability matters can negatively affect our business or damage our reputation
  17. 17Strikes or work stoppages can cause our business to suffer

Financial Risks

  1. 18Failure to realize benefits from our productivity initiatives or organizational restructurings can adversely affect our financial performance
  2. 19A deterioration in our estimates and underlying assumptions regarding the future performance of our business or investments can result in impairment charges that adversely affect our results of operations
  3. 20Fluctuations in exchange rates impact our financial performance
  4. 21Our borrowing costs and access to capital and credit markets can be adversely affected by a downgrade or potential downgrade of our credit ratings

Legal, Tax and Regulatory Risks

  1. 22Taxes aimed at our products can adversely affect our business or financial performance33% rewritten
  2. 23Limitations on the marketing or sale of our products can adversely affect our business and financial performance35% rewritten
  3. 24Laws and regulations related to the use or disposal of plastics or other packaging materials can adversely affect our business and financial performance22% rewritten
  4. 25Failure to comply with personal data protection and privacy laws can adversely affect our business25% rewritten
  5. 26Increases in income tax rates, changes in income tax laws or disagreements with tax authorities can adversely affect our financial performance40% rewritten
  6. 27If we are unable to adequately protect our intellectual property rights, or if we are found to infringe on the intellectual property rights of others, our business can be adversely affected
  7. 28Failure to comply with laws and regulations applicable to our business can adversely affect our business21% rewritten
  8. 29Potential liabilities and costs from litigation, claims, legal or regulatory proceedings, inquiries or investigations can have an adverse impact on our business36% rewritten

Other PepsiCo 10-Ks

  • FY2024 10-K risk factors
    30 risks

    Water scarcity and climate change threaten essential agricultural raw materials, manufacturing operations, and global supply chains.

    Filed Feb 04, 2025

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.