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

Keurig Dr Pepper (NASDAQ:KDP) issued its earnings results on Thursday. The company reported $0.57 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.54 by $0.03, FiscalAI reports. The company 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 7.10% and a return on equity of 10.80%. The firm’s quarterly revenue was up 75.6% on a year-over-year basis. During the same quarter last year, the company posted $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 Stock Down 1.2%

KDP opened at $30.01 on Friday. The company has a debt-to-equity ratio of 0.74, a quick ratio of 2.12 and a current ratio of 0.48. Keurig Dr Pepper has a fifty-two week low of $24.88 and a fifty-two week high of $35.94. The firm’s fifty day moving average is $31.19 and its 200 day moving average is $29.13. The stock has a market cap of $40.83 billion, a price-to-earnings ratio of 30.31, a price-to-earnings-growth ratio of 1.39 and a beta of 0.40.

Keurig Dr Pepper Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, July 10th. Stockholders of record on Friday, June 26th were given a dividend of $0.23 per share. This represents a $0.92 annualized dividend and a dividend yield of 3.1%. The ex-dividend date was Friday, June 26th. Keurig Dr Pepper’s dividend payout ratio (DPR) is presently 68.15%.

More Keurig Dr Pepper News

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

• Positive Sentiment: Q2 results exceeded expectations. KDP reported adjusted earnings of $0.57 per share, above consensus estimates of roughly $0.54-$0.55, while revenue reached $7.31 billion versus expectations of $7.23 billion. EPS increased from $0.49 a year earlier. Keurig Dr Pepper Reports Q2 Results and Reaffirms Guidance for 2026
• Positive Sentiment: Growth benefited from U.S. Refreshment Beverages and JDE Peet’s. Management and analysts pointed to continued momentum in the U.S. beverage business, contributions from the JDE Peet’s acquisition, and efficiency initiatives as key drivers of the quarterly performance. Reported revenue rose 75.6% year over year, although the increase was significantly affected by the acquisition. Keurig Q2 Earnings and Sales Beat Estimates on JDE Peet’s Strength
• Positive Sentiment: RBC Capital maintained a Buy rating. The continued bullish analyst stance provides support for KDP’s investment case following the earnings report. RBC Capital Remains a Buy on Keurig Dr Pepper
• Neutral Sentiment: Full-year guidance was reaffirmed rather than increased. KDP maintained its 2026 constant-currency sales outlook of $25.9 billion to $26.4 billion, broadly in line with the approximately $26.2 billion consensus estimate, and reaffirmed its adjusted EPS outlook. This limits the potential for a major positive earnings-revision catalyst. Keurig Dr Pepper Maintains Annual Forecasts After Quarterly Results Beat
• Negative Sentiment: Investors remain focused on execution risk. The company is continuing work to separate into two businesses and is targeting a pro forma year-end management leverage ratio of 4.1 times. The separation costs, operational complexity and elevated leverage could temper enthusiasm despite the quarterly beat. Keurig Dr Pepper Posts Higher Sales as Separation Work Continues

Wall Street Analyst Weigh In

KDP has been the subject of a number of recent research reports. UBS Group boosted their price target on Keurig Dr Pepper from $38.00 to $39.00 and gave the company a “buy” rating in a research note on Friday. Wells Fargo & Company set a $37.00 price objective on shares of Keurig Dr Pepper in a report on Wednesday, July 1st. JPMorgan Chase & Co. boosted their target price on shares of Keurig Dr Pepper from $33.00 to $38.00 and gave the company an “overweight” rating in a research report on Thursday, July 23rd. BNP Paribas Exane upgraded shares of Keurig Dr Pepper from an “underperform” rating to a “neutral” rating and set a $28.00 price target on the stock in a research report on Wednesday, April 22nd. Finally, Weiss Ratings upgraded shares of Keurig Dr Pepper from a “hold (c-)” rating to a “hold (c)” rating in a research note on Monday, May 11th. Nine 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, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $34.00.

Institutional Investors Weigh In On Keurig Dr Pepper

A number of institutional investors have recently bought and sold shares of KDP. T. Rowe Price Investment Management Inc. purchased a new stake in Keurig Dr Pepper in the 4th quarter worth $523,739,000. Wellington Management Group LLP boosted its holdings in shares of Keurig Dr Pepper by 37.0% during the 4th quarter. Wellington Management Group LLP now owns 57,003,344 shares of the company’s stock valued at $1,596,664,000 after purchasing an additional 15,393,753 shares during the last quarter. AQR Capital Management LLC grew its position in shares of Keurig Dr Pepper by 285.3% during the fourth quarter. AQR Capital Management LLC now owns 11,636,027 shares of the company’s stock valued at $325,925,000 after purchasing an additional 8,615,869 shares in the last quarter. Price T Rowe Associates Inc. MD grew its position in shares of Keurig Dr Pepper by 30.9% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 12,049,426 shares of the company’s stock valued at $337,505,000 after purchasing an additional 2,845,034 shares in the last quarter. Finally, Marshall Wace LLP increased its holdings in shares of Keurig Dr Pepper by 1,546.0% in the third quarter. Marshall Wace LLP now owns 2,937,129 shares of the company’s stock worth $74,926,000 after purchasing an additional 2,758,685 shares during the last quarter. Hedge funds and other institutional investors own 93.99% of the company’s stock.

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.