Keurig Dr Pepper (NASDAQ:KDP) Issues Quarterly Earnings Results, Beats Expectations By $0.03 EPS

Keurig Dr Pepper (NASDAQ:KDP) posted its quarterly earnings data on Thursday. The company reported $0.57 EPS for the quarter, beating the consensus estimate of $0.54 by $0.03, FiscalAI reports. The business had revenue of $7.31 billion for 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% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.49 EPS.

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 Trading Down 1.2%

NASDAQ KDP opened at $30.37 on Friday. Keurig Dr Pepper has a 12 month low of $24.88 and a 12 month high of $35.94. The company has a current ratio of 2.31, a quick ratio of 2.12 and a debt-to-equity ratio of 0.72. The stock has a 50 day moving average of $31.19 and a 200-day moving average of $29.13. The company has a market cap of $41.32 billion, a PE ratio of 22.50, a PEG ratio of 1.41 and a beta of 0.40.

Keurig Dr Pepper Dividend Announcement

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

Analyst Upgrades and Downgrades

Several research analysts have recently weighed in on KDP shares. JPMorgan Chase & Co. upped their price objective on Keurig Dr Pepper from $33.00 to $38.00 and gave the stock an “overweight” rating in a research report on Thursday, July 23rd. Weiss Ratings raised Keurig Dr Pepper from a “hold (c-)” rating to a “hold (c)” rating in a research report on Monday, May 11th. Barclays upgraded shares of Keurig Dr Pepper from an “equal weight” rating to an “overweight” rating and lifted their price objective for the company from $30.00 to $36.00 in a report on Thursday, June 25th. BNP Paribas Exane raised shares of Keurig Dr Pepper from an “underperform” rating to a “neutral” rating and set a $28.00 price objective on the stock in a research report on Wednesday, April 22nd. Finally, The Goldman Sachs Group upgraded shares of Keurig Dr Pepper from a “neutral” rating to a “neutral” rating in a report on Thursday, June 25th. Nine research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $33.94.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Compound Planning Inc. acquired a new stake in shares of Keurig Dr Pepper during the 4th quarter worth $260,000. Corient Private Wealth LLC increased its holdings in Keurig Dr Pepper by 6.3% in the 4th quarter. Corient Private Wealth LLC now owns 126,214 shares of the company’s stock valued at $3,535,000 after buying an additional 7,439 shares during the period. Mercer Global Advisors Inc. ADV raised its position in shares of Keurig Dr Pepper by 361.4% in the 4th quarter. Mercer Global Advisors Inc. ADV now owns 190,732 shares of the company’s stock valued at $5,342,000 after buying an additional 149,393 shares in the last quarter. Vident Advisory LLC lifted its holdings in shares of Keurig Dr Pepper by 207.3% during the 4th quarter. Vident Advisory LLC now owns 115,593 shares of the company’s stock worth $3,238,000 after acquiring an additional 77,975 shares during the period. Finally, EP Wealth Advisors LLC acquired a new stake in shares of Keurig Dr Pepper during the 4th quarter worth approximately $786,000. 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: KDP reported adjusted earnings of $0.57 per share, above consensus estimates of $0.54-$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 Q2 earnings report
• Positive Sentiment: Management cited continued momentum in U.S. Refreshment Beverages, strength from the JDE Peet’s acquisition and productivity initiatives as key performance drivers. The company’s reported revenue increased 75.6% year over year, although the acquisition accounts for a substantial portion of that growth. Keurig Q2 earnings and sales beat estimates
• Positive Sentiment: KDP reaffirmed its full-year 2026 constant-currency net sales and adjusted EPS outlook, reducing the risk of a near-term guidance disappointment. Revenue guidance remains $25.9 billion to $26.4 billion, broadly in line with the $26.2 billion analyst consensus. Keurig Dr Pepper reports Q2 results and reaffirms guidance

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.