Compliance Status
Not Halal
Screened on Oct 19, 2026 · AAOIFI Standard 21
Non-Compliant
Is PepsiCo, Inc. (PEP) halal? Not Halal. Based on AAOIFI screening, PepsiCo, Inc. passes the business activity screen but fails financial ratio screens with a compliance score of 0/100 (Grade: F).
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HalalScreener rates PepsiCo, Inc. (PEP) Not Halal, 0/100, grade F under AAOIFI Standard 21, screened Oct 19, 2026. Source: https://halalscreener.app/en/stock/PEP
Business activity
What the company sells is permissible.
Company debt
Close to the limitHow much the company borrows, compared to its total value. AAOIFI allows up to 30%.
The verdict above is final and free.
Pro members can verify every number behind it: interest-bearing deposits, prohibited income breakdown, and the full AAOIFI math.
Screened according to AAOIFI Standard 21
What this means for you
Most scholars advise not holding PEP
It does not pass AAOIFI Shariah screening.
See halal alternatives from the same sector further down this page
PEP: Is PepsiCo, Inc. Halal?
PepsiCo, Inc.
$131.49
+2.42%
Market Cap: 179.2B
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About PepsiCo, Inc.
PepsiCo, Inc. is a global enterprise that creates, promotes, and supplies a diverse array of drinks and easy-to-prepare food items across the globe. Its operations are structured into seven primary divisions: Frito-Lay North America, Quaker Foods North America, PepsiCo Beverages North America, Latin America, Europe, Africa/Middle East/South Asia, and the Asia Pacific, Australia, New Zealand, and China Region. The company's extensive product catalog encompasses popular snack foods like various dips, cheese snacks, spreads, and a range of chips (including corn, potato, and tortilla varieties). Its pantry staples feature cereals, rice, pasta, baking mixes, beverage syrups, granola bars, grits, oatmeal, rice cakes, and ready-made side dishes. In the beverage sector, PepsiCo offers concentrated syrups, fountain beverages, pre-packaged drinks, ready-to-consume teas, coffees, fruit juices, dairy-based items, and home carbonation systems with associated goods. PepsiCo reaches its broad clientele, which includes wholesale partners, food service providers, various retail outlets like supermarkets, pharmacies, convenience shops, discount stores, large-format retailers, membership-based stores, hard discount retailers, online merchants, and approved independent bottlers. This widespread distribution is achieved via direct store delivery, customer warehouse systems, and comprehensive distributor networks, along with direct sales to consumers through digital commerce channels and retail partners. Established in 1898, the corporation maintains its principal office in Purchase, New York.
Sector: Consumer Defensive · Industry: Beverages - Non-Alcoholic
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Is PepsiCo (PEP) Stock Halal? Shariah Compliance Analysis
Why this does not pass
- Interest-bearing debt is 29.0% of market cap. It was over the 30% AAOIFI limit and has not yet cleared it by 1.5 points, so the verdict is held.
Screened under AAOIFI Standard 21. The exact figure behind this is part of Pro; the failing check and its limit are always free.
Shariah Compliance Status
See which ratio caused the failure.
See the exact debt ratio, interest income %, and prohibited revenue that caused the failure. Know before you sell or hold.
AI Compliance Insight
PROInstitutional-grade Shariah analysis
See why PEP is rated Not Halal with institutional-grade analysis
The verdict above is final and free.
Pro members can verify every number behind it: interest-bearing deposits, prohibited income breakdown, and the full AAOIFI math.
Screened according to AAOIFI Standard 21
Compliance History
Not Halalnow
since Sep 2026
Doubtful
until the change above
Halal
until the change above
Not Halal
until the change above
Tracked since May 2026. Updates automatically on each re-screen.
Halal Alternatives in Consumer Defensive
This stock is not Shariah-compliant. Here are halal alternatives from the same sector, ranked by compliance score:
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Frequently Asked Questions
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Screened according to AAOIFI Standard No. 21 · For informational purposes only. Consult a qualified Islamic finance advisor before investing.
Disclaimer: This screening is for informational purposes only and does not constitute financial, legal, or religious advice. Compliance is evaluated using AAOIFI financial standards (debt, deposits, and prohibited income ratios) and publicly available data. Ethical, political, social, or environmental considerations are outside the scope of this screening. Individual scholars and methodologies may differ. Always consult a qualified Islamic finance advisor before making investment decisions.