Keurig Dr Pepper (NASDAQ:KDP) Posts Earnings Results, Beats Estimates By $0.03 EPS

Key Points

• Keurig Dr Pepper beat second-quarter expectations: Adjusted EPS was $0.57 versus the $0.54 consensus, while revenue reached $7.31 billion, up 75.6% year over year and boosted by the JDE Peet’s acquisition.
• Growth was led by U.S. Refreshment Beverages and JDE Peet’s, while U.S. Coffee remained under pressure from weaker pod shipments, higher green coffee costs, tariffs and private-label competition.
• Management reaffirmed its 2026 outlook, including low-double-digit constant-currency EPS growth, and continues preparing to separate Beverage Co. and Global Coffee Co. in early 2027 while targeting year-end leverage of approximately 4.1x.

Keurig Dr Pepper (NASDAQ:KDP - Get Free Report) released its earnings results on Thursday. The company reported $0.57 earnings per share for the quarter, beating the consensus estimate of $0.54 by $0.03, FiscalAI reports. The business had revenue of $7.31 billion during the quarter, compared to analysts' expectations of $7.23 billion. Keurig Dr Pepper had a net margin of 10.81% and a return on equity of 10.51%. The firm's revenue was up 75.6% on a year-over-year basis. During the same quarter last year, the company earned $0.49 earnings per share.

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

• Q2 results exceeded expectations: Net sales rose 74.6%, including JDE Peet’s, while operating income increased 42.9% and adjusted EPS grew 16.3% to $0.57. Management reaffirmed its low-double-digit constant-currency EPS growth outlook for 2026.
• U.S. Refreshment Beverages remained a key growth engine, with sales up 10% and operating income up 11.9%. Dr Pepper Zero Sugar, Creamy Coconut, energy brands Bloom and Ghost, and newer platforms such as sports hydration and water drove volume and market-share gains, although growth is expected to moderate against tougher comparisons in the second half.
• JDE Peet’s delivered $2.8 billion in sales and $414 million in operating income, ahead of expectations due to pricing discipline, productivity savings, and favorable timing. KDP expects its planned $400 million in cost synergies to build, supported by procurement, IT, SG&A, manufacturing, and logistics initiatives.
• U.S. Coffee remained pressured: sales declined 3.2%, operating income fell 24.7%, and pod shipments dropped 8.3% excluding the Peet’s reporting shift. Higher green coffee costs and tariffs, weaker single-serve category trends, private-label mix, and trade inventory headwinds hurt results, though management expects profitability and volume trends to improve in the second half.
• KDP is advancing integration and preparations to separate Beverage Co. and Global Coffee Co. in early 2027, while reducing pro forma leverage to 4.4x and targeting approximately 4.1x by year-end; however, the Global Coffee Co. CEO search remains ongoing and management provided no specific appointment date.

Keurig Dr Pepper Price Performance

Keurig Dr Pepper stock traded down $0.38 during mid-day trading on Thursday, hitting $30.37. 17,190,320 shares of the company were exchanged, compared to its average volume of 12,135,862. The company has a market capitalization of $41.32 billion, a PE ratio of 22.50, a price-to-earnings-growth ratio of 1.42 and a beta of 0.40. The business has a fifty day moving average of $31.18 and a 200 day moving average of $29.10. Keurig Dr Pepper has a 1-year low of $24.88 and a 1-year high of $35.94. The company has a quick ratio of 2.12, a current ratio of 2.31 and a debt-to-equity ratio of 0.72.

Keurig Dr Pepper Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, July 10th. Shareholders of record on Friday, June 26th were paid a dividend of $0.23 per share. This represents a $0.92 annualized dividend and a yield of 3.0%. The ex-dividend date was Friday, June 26th. Keurig Dr Pepper's dividend payout ratio is currently 68.15%.

Wall Street Analysts Forecast Growth

KDP has been the subject of a number of recent research reports. Weiss Ratings upgraded Keurig Dr Pepper from a "hold (c-)" rating to a "hold (c)" rating in a research note on Monday, May 11th. The Goldman Sachs Group upgraded shares of Keurig Dr Pepper from a "neutral" rating to a "neutral" rating in a research note on Thursday, June 25th. BNP Paribas Exane upgraded shares of Keurig Dr Pepper from an "underperform" rating to a "neutral" rating and set a $28.00 price objective for the company in a research note on Wednesday, April 22nd. Wells Fargo & Company set a $37.00 price objective on shares of Keurig Dr Pepper in a report on Wednesday, July 1st. Finally, Barclays upgraded shares of Keurig Dr Pepper from an "equal weight" rating to an "overweight" rating and lifted their target price for the company from $30.00 to $36.00 in a research report on Thursday, June 25th. Nine analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $33.94.

Key Stories Impacting Keurig Dr Pepper

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

• Positive Sentiment: KDP reported second-quarter adjusted EPS of $0.57, ahead of analyst estimates ranging from $0.54 to $0.55 and up from $0.49 a year earlier. Revenue reached $7.31 billion, exceeding the $7.23 billion consensus estimate. Keurig Dr Pepper surpasses Q2 earnings and revenue estimates
• Positive Sentiment: Performance was led by U.S. Refreshment Beverages, the JDE Peet’s business and efficiency initiatives. The JDE Peet’s acquisition also contributed to reported sales growth, with revenue increasing 75.6% year over year. Keurig Q2 earnings and sales beat estimates on JDE Peet’s strength
• Positive Sentiment: Management reaffirmed its 2026 constant-currency net sales and adjusted EPS outlook, suggesting the quarterly beat did not undermine its broader operating expectations. Keurig Dr Pepper reports Q2 results and reaffirms guidance for 2026
• Neutral Sentiment: Full-year revenue guidance remains at $25.9 billion to $26.4 billion, broadly in line with the $26.2 billion analyst consensus. The company also continues targeting a pro forma management leverage ratio of 4.1 times at year-end.
• Negative Sentiment: The company is still working through its planned separation into two companies. While the restructuring could create longer-term strategic value, execution demands, integration work and leverage following the JDE Peet’s acquisition may be weighing on investor enthusiasm. Keurig Dr Pepper posts higher sales as separation work continues

Institutional Investors Weigh In On Keurig Dr Pepper

Large investors have recently made changes to their positions in the company. DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main lifted its holdings in Keurig Dr Pepper by 102,300.0% during the 2nd quarter. DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main now owns 1,024 shares of the company's stock valued at $34,000 after purchasing an additional 1,023 shares during the last quarter. Rossby Financial LCC grew its stake in Keurig Dr Pepper by 45.1% during the fourth quarter. Rossby Financial LCC now owns 1,090 shares of the company's stock worth $31,000 after buying an additional 339 shares during the last quarter. GW&K Investment Management LLC increased its holdings in shares of Keurig Dr Pepper by 67.6% during the fourth quarter. GW&K Investment Management LLC now owns 1,118 shares of the company's stock worth $31,000 after buying an additional 451 shares in the last quarter. Measured Wealth Private Client Group LLC acquired a new stake in shares of Keurig Dr Pepper during the third quarter worth approximately $34,000. Finally, BOKF NA raised its stake in shares of Keurig Dr Pepper by 44.1% in the third quarter. BOKF NA now owns 1,388 shares of the company's stock valued at $35,000 after acquiring an additional 425 shares during the last quarter. Institutional investors own 93.99% of the company's stock.

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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