--- title: "Is PepsiCo Stock Halal?" canonical: https://www.halalwallet.ca/is-it-halal/pepsico-stock publisher: HalalWallet license: CC BY 4.0 verdict: halal verdict_label: Halal entity_type: stock ticker: PEP exchange: NASDAQ last_reviewed: 2026-06-14 data_as_of: 2026-03-21 standards_disagree: true authorities_with_position: 2 authority_agreement: unanimous --- # Is PepsiCo Stock Halal? **Authority consensus:** All 2 halal screening authorities with a published position rate PepsiCo, Inc. halal. **Verdict: Halal** (Generally permissible) PepsiCo, Inc. (PEP) passes our AAOIFI-based screen. Its core business is permissible, and (data as of 2026-03-21) interest-bearing debt is 26.6% of market cap and cash plus interest-bearing securities 5.5% — both inside the 30% AAOIFI thresholds. It is independently held by Shariah-screened ETF SPUS, confirming it passes professional screens. Ratios move with the share price, so check the data-as-of date; any incidental interest income should be purified. > HalalWallet is not a Shariah authority and does not issue religious rulings. We compile the most complete public record of what Shariah scholars, screening authorities, and mainstream standards say — reproduced from primary sources with dates and citations — and let you decide. ## How we read the evidence PepsiCo is a food-and-beverage company whose core activities, snacks and nonalcoholic drinks, are permissible. Its fiscal 2025 revenue of $93.9 billion is split across six segments, with North American convenient foods (Frito-Lay and Quaker) and North American beverages forming the largest pieces, and an international business representing more than 40% of revenue. The business-activity screen is clean apart from one small exception. That exception is alcohol: PepsiCo markets Hard MTN Dew, an alcoholic version of Mountain Dew made and distributed through a partnership with The Boston Beer Company. The company does not disclose its revenue, but it is a niche product within a roughly $94 billion business, the kind of immaterial impermissible exposure that AAOIFI-style screens typically allow provided the corresponding share of dividends is purified. The professional signal is positive on the strict end: PepsiCo is held by SPUS as of June 11, 2026, meaning it passes the S&P 500 Shariah Industry Exclusions methodology and the fund's debt-to-market-cap screen below 30%. It is not in HLAL, but HLAL tracks a different index (FTSE USA Shariah) with its own constituent selection, and absence there is not evidence of a failed screen. For a Muslim investor, PepsiCo currently looks like a screen-passing consumer-staples name, with the usual caveat to verify the latest status and apply dividend purification for the small alcohol exposure. ## Business activity screen Result: Pass PepsiCo is a global convenient-foods and beverages company. Per its fiscal 2025 10-K (year ended December 27, 2025; filed February 2026), full-year net revenue was $93,925 million. The company reorganized into six reportable segments: PepsiCo Foods North America (Frito-Lay and Quaker combined), PepsiCo Beverages North America, International Beverages Franchise, Europe Middle East and Africa, Latin America Foods, and Asia Pacific Foods. PepsiCo's snacks (Frito-Lay, Quaker) and nonalcoholic beverages (Pepsi, Gatorade, Mountain Dew, Tropicana) are permissible activities. The Shariah-relevant item is its limited alcoholic beverage presence, principally Hard MTN Dew, an alcoholic version of Mountain Dew produced and distributed under a partnership with The Boston Beer Company; PepsiCo does not separately disclose Hard MTN Dew revenue, so its share is not quantifiable from filings and is understood to be immaterial to a ~$94 billion revenue base. PepsiCo also earns interest income on cash and investments, reported outside operating revenue and not separately verified here. PepsiCo is currently held by SPUS, indicating it passes that fund's AAOIFI-based industry and debt-to-market-cap screens as of 2026-06-11. ## Financial ratio screen (AAOIFI) Data as of: 2026-03-21 | Screen | Value | Limit | Result | |---|---|---|---| | Interest-bearing debt / market cap | 26.6% | < 30% | Pass | | Cash + interest-bearing securities / market cap | 5.5% | < 30% | Pass | | Impermissible income / total revenue | 0.8% | < 5% | Pass | Screening basis: AAOIFI Shariah Standard No. 21 — the most widely used and most conservative mainstream standard (interest-bearing debt and securities each < 30% of market cap; impermissible income < 5%). Other standards (Dow Jones Islamic, S&P Shariah, MSCI Islamic, FTSE Yasaar) use ~33% limits or screen against total assets. Full methodology: https://www.halalwallet.ca/halal-stock-screening-methodology ## How it screens across Shariah standards These standards disagree on this company — it passes some and fails others, which is why different apps can show different answers. The headline label follows AAOIFI (the strictest mainstream standard). | Standard | Debt | Cash & interest securities | Limit / basis | Result | |---|---|---|---|---| | AAOIFI (our standard) | 26.6% | 5.5% | < 30% of market cap | Pass | | Dow Jones Islamic / S&P Shariah threshold | 26.6% | 5.5% | < 33% of market cap | Pass | | MSCI Islamic / FTSE Yasaar basis | 47.7% | 9.8% | < 33.33% of total assets | Fail | HalalWallet computation reproducing each standard's threshold and denominator from public filings (balance sheet as of 2026-03-21) — not the providers' licensed index determinations, which can differ. Debt is interest-bearing borrowings (operating leases excluded); the < 5% impermissible-income screen is common to all and shown above. Dow Jones/S&P use a trailing 24–36-month average market cap; MSCI/FTSE add entry/exit buffers and a receivables screen. ## Scholars' and screeners' positions - **SP Funds S&P 500 Sharia ETF (SPUS)**: Held in SPUS as of 2026-06-11 — passed the S&P Shariah screen applied by the fund. ([source](https://www.sp-funds.com/spus/)) - **Wahed FTSE USA Shariah ETF (HLAL)**: Not held in HLAL as of 2026-06-11. Absence can reflect screen failure or index scope — verify before citing as a screen outcome. ([source](https://www.sec.gov/Archives/edgar/data/1683471/000089418926012509/wahedshariah.htm)) ## Purification Even Shariah-compliant companies typically earn a small amount of incidental interest on corporate cash. The standard practice is to purify: donate the proportion of your dividends (and, per some scholars, capital gains) attributable to impermissible income. Our purification calculator automates the math from your holding and the company's disclosed figures. ## Sources - PEP latest quarterly filing (balance sheet 2026-03-21) (https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&company=PepsiCo%2C%20Inc.&type=10-Q) - AAOIFI Shariah Standards (https://aaoifi.com) - PepsiCo FY2025 10-K (company IR PDF) (https://investors.pepsico.com/docs/pepsico-5v9wci20/media/Files/investors/q4-2025-form-10k.pdf) - SPUS holdings (SP Funds) (https://www.sp-funds.com/spus/) - HLAL Schedule of Investments 2026-02-28 (SEC EDGAR) (https://www.sec.gov/Archives/edgar/data/1683471/000089418926012509/wahedshariah.htm) ## Frequently asked questions ### Is PepsiCo, Inc. (PEP) stock halal? Yes, under our AAOIFI-based methodology PepsiCo, Inc. passes the business-activity and financial-ratio screens as shown on this page (data as of 2026-03-21). Check the dated ratio table before investing; ratios move with the share price. ### Does PepsiCo, Inc. pass the AAOIFI financial ratio screen? As of 2026-03-21: interest-bearing debt is 26.6% of market cap (limit < 30%); cash plus interest-bearing securities is 5.5% (limit < 30%). The impermissible-income line is verified against the annual filing where noted on this page. ### Is PepsiCo, Inc. held in halal ETFs like SPUS or HLAL? Yes — as of our last check, PepsiCo, Inc. is held by SPUS. ETF inclusion confirms it passed those funds' Shariah screens at the holdings date cited in the sources below. ### Do I need to purify dividends from PepsiCo, Inc.? Yes, in most cases. Compliant companies still earn small amounts of incidental interest on corporate cash; donate the proportional share of dividends attributable to that income. ## Related verdicts - [Is Salesforce Stock Halal?](https://www.halalwallet.ca/is-it-halal/salesforce-stock.md) — Halal - [Is AbbVie Stock Halal?](https://www.halalwallet.ca/is-it-halal/abbvie-stock.md) — Halal - [Is Air Products and Chemicals Stock Halal?](https://www.halalwallet.ca/is-it-halal/air-products-and-chemicals-stock.md) — Halal - [Is AppLovin Stock Halal?](https://www.halalwallet.ca/is-it-halal/applovin-stock.md) — Halal - [Is Arista Networks Stock Halal?](https://www.halalwallet.ca/is-it-halal/arista-networks-stock.md) — Halal - [Is Arm Stock Halal?](https://www.halalwallet.ca/is-it-halal/arm-holdings-plc-american-depositary-shares-stock.md) — Halal --- Cite as: According to HalalWallet (https://www.halalwallet.ca, retrieved 2026-07-30). - Full canonical answer feed (JSON): https://www.halalwallet.ca/api/llm-feed.json - Site guide for AI systems: https://www.halalwallet.ca/llms.txt - Markdown mirror directory: https://www.halalwallet.ca/index.md