Canadian Halal Investor.

NASDAQ Shariah screener · October 2026

Is PepsiCo, Inc. (PEP) Halal?

PASS

PepsiCo, Inc. · NASDAQ: PEP · Consumer Staples

The short answer

Yes — PepsiCo (PEP) passes this Shariah stock screen on all three gates. It is a global beverages and convenient foods company (Lay's, Doritos, Cheetos, Gatorade, Pepsi-Cola, Mountain Dew, Quaker, SodaStream, sold in 200+ countries) with no alcohol, tobacco, gambling, weapons or finance segments in its 10-K business description. Its $53,214M of debt (Q2 2026 10-Q) is about 31.00% of its ~$171.65B market cap (1,366,649,053 shares × $125.60, October 1, 2026), below the ~33% ceiling, and its FY2025 10-K discloses no separate interest or investment income — interest is a net cost ('Net interest expense and other' of $(1,121)M) — so disclosed non-compliant income is 0.00% of its $93,925M revenue, below the 5% ceiling. One honest caveat: AAOIFI-based screeners using a 30% debt ceiling (e.g., halalscreener.app, screened Oct 1, 2026) rate PEP non-compliant at 30.7% debt-to-market-cap — it passes only under the 33% ceiling, and scholars differ on the threshold. This is a factual screen, not a religious ruling; consult a qualified scholar for personal rulings.

Gate 1 — Business activity: PASS

PepsiCo, Inc. (NASDAQ: PEP) — incorporated in Delaware in 1919, reincorporated in North Carolina in 1986, headquartered in Purchase, New York — is a leading global beverage and convenient food company. Its portfolio includes Lay's, Doritos, Cheetos, Gatorade, Pepsi-Cola, Mountain Dew, Quaker and SodaStream, sold in more than 200 countries and territories. It reports six segments: PepsiCo Foods North America (PFNA), PepsiCo Beverages North America (PBNA), International Beverages Franchise (including SodaStream), Europe, Middle East and Africa (EMEA), Latin America Foods and Asia Pacific Foods. Business-screen implication (factual): all six segments are beverages and convenient foods — the FY2025 10-K business description lists no alcohol, tobacco, gambling, weapons or conventional-finance operations or segments. Gate 1 passes. Facts only.

Gate 2 — Debt and cash: PASS

Per PepsiCo's Q2 2026 10-Q (12 weeks ended June 13, 2026; SEC CIK 77476), total debt was $53,214M — short-term debt obligations $10,602M + long-term debt obligations $42,612M. Against a market cap of about $171.65B (1,366,649,053 shares outstanding per the FY2025 10-K cover × $125.60, October 1, 2026), debt ÷ market cap is about 31.00% — below the ~33% ceiling. Cash and cash equivalents of $10,251M plus short-term investments of $465M is about 6.24% of market cap. Competing scholarly position: AAOIFI-based screeners apply a 30% debt ceiling — halalscreener.app rates PEP 'Not Halal' at 30.7% debt-to-market-cap (screened Oct 1, 2026); PEP passes only under this screener's 33% ceiling. The debt gate passes. Facts only.

Gate 3 — Non-compliant income: PASS

PepsiCo's FY2025 10-K (filed February 2, 2026) reports no separately disclosed interest or investment income line — the broadest verifiable figure available. Interest is reported only net, inside the income-statement line 'Net interest expense and other' of $(1,121)M: interest is a net cost to PepsiCo, not income. Disclosed non-compliant (interest/investment) income is therefore 0.00% of FY2025 net revenue ($93,925M), below the 5% ceiling. Zoya's public PEP page likewise reports $0 / no separately disclosed interest income for FY2025. The income gate passes. Facts only.

Key figures used

Frequently asked questions

What does PepsiCo do?

PepsiCo, Inc., incorporated in Delaware in 1919 and reincorporated in North Carolina in 1986 and headquartered in Purchase, New York, is a leading global beverage and convenient food company. Its portfolio includes Lay's, Doritos, Cheetos, Gatorade, Pepsi-Cola, Mountain Dew, Quaker and SodaStream, sold in more than 200 countries and territories. It reports six segments: PepsiCo Foods North America (PFNA), PepsiCo Beverages North America (PBNA), International Beverages Franchise (including SodaStream), Europe, Middle East and Africa (EMEA), Latin America Foods, and Asia Pacific Foods. FY2025 net revenue was $93,925M.

Why does PepsiCo pass this Shariah stock screen?

PepsiCo passes all three gates of this screen. Gate 1 (business): all six reportable segments are beverages and convenient foods — the FY2025 10-K business description lists no alcohol, tobacco, gambling, weapons or conventional-finance operations. Gate 2 (debt): $53,214M of debt is about 31.00% of its ~$171.65B market cap, below the ~33% ceiling. Gate 3 (income): the 10-K discloses no separate interest or investment income line — interest is a net cost ('Net interest expense and other' of $(1,121)M), so disclosed non-compliant income is 0.00% of revenue, below the 5% ceiling. One honest caveat: AAOIFI-based screeners applying a 30% debt ceiling (e.g., halalscreener.app, screened Oct 1, 2026) rate PEP non-compliant at 30.7% — PepsiCo passes only under this screener's 33% ceiling, and scholars differ on the threshold. This is a factual screen, not a religious ruling — consult a qualified scholar for personal rulings.

What is PepsiCo's interest-bearing debt ratio?

Per PepsiCo's Q2 2026 10-Q (12 weeks ended June 13, 2026; SEC CIK 77476), total debt was $53,214M — short-term debt obligations $10,602M + long-term debt obligations $42,612M. Against a market cap of about $171.65B (1,366,649,053 shares outstanding per the FY2025 10-K cover × $125.60, October 1, 2026), debt ÷ market cap is about 31.00% — below the ~33% ceiling, so the debt gate passes. Cash and cash equivalents of $10,251M plus short-term investments of $465M is about 6.24% of market cap. Competing position: halalscreener.app (AAOIFI Standard 21, 30% debt ceiling) rates PEP 'Not Halal' with debt-to-market-cap of 30.7% as of Oct 1, 2026 — the stock passes only under the 33% ceiling used here.

What is PepsiCo's non-compliant income ratio?

PepsiCo's FY2025 10-K (filed February 2, 2026) discloses no separate interest income or investment income line — this is the broadest verifiable figure available. Interest is reported only net, inside the income-statement line 'Net interest expense and other' of $(1,121)M: interest is a net cost to PepsiCo, not income. Disclosed non-compliant (interest/investment) income is therefore 0.00% of FY2025 net revenue ($93,925M), below the 5% ceiling, so the income gate passes. Zoya's public PEP page likewise reports $0 / no separately disclosed interest income for FY2025.

Do Zoya, Musaffa, or ShariaPortfolio cover PepsiCo?

Zoya covers PEP — its public stock page (zoya.finance/stocks/pep) says 'As of October 2026, PEP is Shariah-compliant and therefore considered halal to invest in,' but the same page also contains contradictory auto-generated template text, so the public-page rating is ambiguous without the app — honestly reported as inconclusive. Musaffa covers PEP — musaffa.com/stock/PEP/ classifies PepsiCo as 'doubtful' as of October 2026 (also listed 'Doubtful' on Musaffa Academy's NASDAQ list). ShariaPortfolio: no PEP stock-screener entry found. For further context, Wealthsimple's Shariah World Equity Index ETF (WSHR) listed PepsiCo among its holdings at 0.91% weight in its September 2024 holdings disclosure. All reported as found, not invented.

Sources

Screened 2026-10-01 from published company figures and market data. Figures change; this page is educational, not financial advice and not a religious ruling.

Screened with our two-gate Shariah screening methodology (business-activity gate, then AAOIFI-style financial ratios).