Keurig Dr Pepper (NASDAQ:KDP) Issues Earnings Results

Key Points

• Closed JDE Peet's acquisition and announced plans to split into two public companies (Beverage Co. and Global Coffee Co.), targeting operational readiness by end‑2026 and an early‑2027 separation to unlock synergies.
• KDP beat Q1 expectations with $0.39 EPS vs. $0.37 consensus and revenue of $3.98B (up 9.4% YoY) as refreshment beverages drove growth, but U.S. coffee faced meaningful near‑term headwinds—pod shipments ~‑7%, brewer shipments down high single digits—and profit pressure from higher green‑coffee hedges and tariffs.
• Deal financing raises net leverage to roughly ~4.5x at mid‑year, though management forecasts about $2.5B aggregate free cash flow in 2026 and intends to prioritize rapid de‑leveraging toward investment‑grade levels.

Keurig Dr Pepper (NASDAQ:KDP - Get Free Report) issued its quarterly earnings data on Thursday. The company reported $0.39 EPS for the quarter, topping analysts' consensus estimates of $0.37 by $0.02, FiscalAI reports. Keurig Dr Pepper had a net margin of 12.52% and a return on equity of 11.14%. The firm had revenue of $3.98 billion for the quarter, compared to analyst estimates of $7.23 billion. During the same quarter in the previous year, the business posted $0.42 EPS. The firm's revenue was up 9.4% compared to the same quarter last year.

Here are the key takeaways from Keurig Dr Pepper's conference call:

• Closed JDE Peet's acquisition (April 1) and set plan to separate into two public companies, targeting operational readiness by end-2026 and an early-2027 separation to unlock synergies and focused strategies for Beverage Co. and Global Coffee Co.
• U.S. refreshment beverages delivered double-digit net sales and operating income growth, driven by CSD momentum, energy brands (Ghost, Bloom), new innovations (Canada Dry Fruit Splash, Dr Pepper Creamy Coconut), and DSD/distribution gains.
• U.S. coffee faced meaningful near-term headwinds — pod shipments down ~7%, brewer shipments down high single digits, and Q1 operating income hit by higher green coffee hedges and tariffs; management expects profit pressure in H1 with recovery in the back half.
• Company reaffirmed 2026 outlook: Q1 net sales +8.1% (5.5 pts price, 2.6 pts volume/mix), EPS guide of low double-digit growth for the full year with visibility to high-single-digit EPS growth in Q2 and acceleration into H2.
• Financing pushes leverage materially higher near-term — deal financing implies roughly ~4.5x net leverage at mid-year despite plans to generate ~$2.5B aggregate free cash flow in 2026 and prioritize rapid de‑leveraging to reach investment-grade targets.

Keurig Dr Pepper Stock Performance

Shares of NASDAQ:KDP traded up $1.74 during trading on Thursday, reaching $28.28. 7,297,558 shares of the company's stock traded hands, compared to its average volume of 10,708,061. The company has a debt-to-equity ratio of 0.51, a current ratio of 0.64 and a quick ratio of 0.43. Keurig Dr Pepper has a 12 month low of $24.88 and a 12 month high of $35.94. The company has a 50 day moving average of $27.55 and a 200-day moving average of $27.61. The stock has a market capitalization of $38.42 billion, a P/E ratio of 18.53, a price-to-earnings-growth ratio of 1.33 and a beta of 0.35.

Keurig Dr Pepper Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, April 10th. Investors of record on Friday, March 27th were given a dividend of $0.23 per share. This represents a $0.92 dividend on an annualized basis and a dividend yield of 3.3%. The ex-dividend date of this dividend was Friday, March 27th. Keurig Dr Pepper's dividend payout ratio is currently 60.13%.

Wall Street Analyst Weigh In

A number of brokerages have commented on KDP. Evercore upgraded shares of Keurig Dr Pepper to a "hold" rating in a report on Monday, April 6th. Citigroup cut their target price on shares of Keurig Dr Pepper from $37.00 to $32.00 and set a "buy" rating on the stock in a research note on Wednesday, April 15th. BNP Paribas Exane upgraded shares of Keurig Dr Pepper from an "underperform" rating to a "neutral" rating and set a $28.00 target price on the stock in a research note on Wednesday. JPMorgan Chase & Co. cut their target price on shares of Keurig Dr Pepper from $36.00 to $32.00 and set an "overweight" rating on the stock in a research note on Thursday, April 16th. Finally, Deutsche Bank Aktiengesellschaft cut their target price on shares of Keurig Dr Pepper from $34.00 to $28.00 and set a "hold" rating on the stock in a research note on Monday, March 30th. One research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and nine have assigned a Hold rating to the company. Based on data from MarketBeat, Keurig Dr Pepper currently has a consensus rating of "Moderate Buy" and an average target price of $31.31.

Institutional Investors Weigh In On Keurig Dr Pepper

A number of institutional investors have recently modified their holdings of the business. State Street Corp grew its position in shares of Keurig Dr Pepper by 1.6% during the 3rd quarter. State Street Corp now owns 64,594,706 shares of the company's stock valued at $1,662,361,000 after buying an additional 986,700 shares during the last quarter. Wellington Management Group LLP grew its position in Keurig Dr Pepper by 37.0% in the 4th quarter. Wellington Management Group LLP now owns 57,003,344 shares of the company's stock worth $1,596,664,000 after purchasing an additional 15,393,753 shares during the last quarter. Morgan Stanley grew its position in Keurig Dr Pepper by 3.0% in the 4th quarter. Morgan Stanley now owns 25,357,596 shares of the company's stock worth $710,266,000 after purchasing an additional 730,864 shares during the last quarter. Barrow Hanley Mewhinney & Strauss LLC grew its position in Keurig Dr Pepper by 3.3% in the 4th quarter. Barrow Hanley Mewhinney & Strauss LLC now owns 21,247,485 shares of the company's stock worth $595,142,000 after purchasing an additional 688,519 shares during the last quarter. Finally, T. Rowe Price Investment Management Inc. bought a new position in Keurig Dr Pepper in the 4th quarter worth about $523,739,000. Institutional investors own 93.99% of the company's stock.

More Keurig Dr Pepper News

Here are the key news stories impacting Keurig Dr Pepper this week:

• Positive Sentiment: Q1 beat on EPS and revenue — KDP reported $0.39 EPS vs. a $0.37 consensus and delivered $3.98B in revenue, up ~9.4% year-over-year, supporting the stock's upside reaction. KDP Surpasses Q1 Estimates
• Positive Sentiment: Company reaffirmed full‑year 2026 outlook and completed the JDE Peet's acquisition on April 1, signaling management confidence in growth and portfolio scale. Q1 Results & Reaffirms Guidance
• Positive Sentiment: Top-line strength driven by cold/beverage portfolio — strong demand in refreshment beverages offset weakness in K-Cup/coffee, helping revenue and offsetting some product-line softness. Reuters: Beverage Demand Offsets Coffee Weakness
• Positive Sentiment: Analyst and market interest — BNP Paribas Exane upgraded KDP to neutral with a $28 target and unusual call buying activity was reported, indicating bullish positioning ahead of/after results. Analyst Upgrade / Market Activity
• Neutral Sentiment: New partnership activity — a Nestlé partnership was announced that could affect product distribution/innovation but impact timing and magnitude are unclear. Nestlé, KDP Partnership
• Neutral Sentiment: Highlighted as an income-stock candidate (Zacks Rank #1) — may attract yield-focused investors but is not an immediate catalyst. Zacks Income Stocks List
• Negative Sentiment: Margin pressure and profit decline — WSJ and company materials note profit fell on higher costs despite sales growth, which could weigh on near-term EPS upside. WSJ: Sales Rise, Profit Falls
• Negative Sentiment: Leverage concerns remain — pre-earnings coverage flagged debt/leverage as a watch item after the JDE Peet's deal, which could limit optionality or raise refinancing risk for some investors. Investing.com: Leverage Concerns

Keurig Dr Pepper Company Profile

Keurig Dr Pepper NASDAQ: KDP is a North American beverage company formed in July 2018 through the combination of Keurig Green Mountain and Dr Pepper Snapple Group. The company designs, manufactures, markets and distributes a wide range of hot and cold beverages and related equipment, combining Keurig's single‑serve coffee systems with a large portfolio of carbonated and noncarbonated drink brands. It operates a network of manufacturing, packaging and distribution facilities to supply retail, foodservice and e-commerce channels across its served markets.

The company's product mix includes single‑serve coffee brewers and coffee pods under the Keurig brand as well as a broad assortment of branded beverages.

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