Keurig Dr Pepper (NASDAQ:KDP) Announces Earnings Results

Keurig Dr Pepper (NASDAQ:KDP) posted its quarterly earnings data on Thursday. The company reported $0.57 EPS for the quarter, topping analysts’ consensus estimates of $0.54 by $0.03, FiscalAI reports. The company had revenue of $7.31 billion for the quarter, compared to analyst estimates of $7.23 billion. Keurig Dr Pepper had a return on equity of 10.51% and a net margin of 10.81%.The business’s revenue was up 75.6% on a year-over-year basis. During the same quarter in the previous year, the firm 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 Trading Down 1.2%

KDP traded down $0.38 during midday trading on Thursday, reaching $30.37. 17,190,320 shares of the company were exchanged, compared to its average volume of 12,135,862. The stock has a market capitalization of $41.32 billion, a P/E ratio of 22.50, a PEG ratio of 1.42 and a beta of 0.40. Keurig Dr Pepper has a one year low of $24.88 and a one year high of $35.94. The stock’s 50-day simple moving average is $31.18 and its 200 day simple moving average is $29.10. The company has a debt-to-equity ratio of 0.72, a quick ratio of 2.12 and a current ratio of 2.31.

Keurig Dr Pepper Dividend Announcement

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

Wall Street Analysts Forecast Growth

Several brokerages recently issued reports on KDP. The Goldman Sachs Group upgraded shares of Keurig Dr Pepper from a “neutral” rating to a “neutral” rating in a research report on Thursday, June 25th. Citigroup boosted their price objective on shares of Keurig Dr Pepper from $32.00 to $37.00 and gave the stock a “buy” rating in a research report on Tuesday, July 14th. JPMorgan Chase & Co. lifted their target price on Keurig Dr Pepper from $33.00 to $38.00 and gave the company an “overweight” rating in a research note on Thursday, July 23rd. Weiss Ratings upgraded Keurig Dr Pepper from a “hold (c-)” rating to a “hold (c)” rating in a research report on Monday, May 11th. Finally, Royal Bank Of Canada reaffirmed an “outperform” rating and issued a $42.00 target price on shares of Keurig Dr Pepper in a research note on Tuesday. Nine equities research analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, Keurig Dr Pepper currently has a consensus rating of “Moderate Buy” and a consensus price target of $33.94.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Compound Planning Inc. bought a new position in shares of Keurig Dr Pepper during the 4th quarter valued at about $260,000. Corient Private Wealth LLC raised its holdings in Keurig Dr Pepper by 6.3% during the 4th quarter. Corient Private Wealth LLC now owns 126,214 shares of the company’s stock worth $3,535,000 after buying an additional 7,439 shares during the period. Mercer Global Advisors Inc. ADV raised its holdings in Keurig Dr Pepper by 361.4% during the 4th quarter. Mercer Global Advisors Inc. ADV now owns 190,732 shares of the company’s stock worth $5,342,000 after buying an additional 149,393 shares during the period. Vident Advisory LLC lifted its stake in Keurig Dr Pepper by 207.3% in the fourth quarter. Vident Advisory LLC now owns 115,593 shares of the company’s stock valued at $3,238,000 after buying an additional 77,975 shares in the last quarter. Finally, EP Wealth Advisors LLC acquired a new position in shares of Keurig Dr Pepper in the fourth quarter valued at approximately $786,000. Institutional investors own 93.99% of the company’s stock.

Trending Headlines about 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

About Keurig Dr Pepper

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.