Keurig Dr Pepper (NASDAQ:KDP) Issues Quarterly Earnings Results, Beats Estimates By $0.04 EPS

Keurig Dr Pepper (NASDAQ:KDP) announced its earnings results on Tuesday. The company reported $0.66 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.62 by $0.04, Zacks reports. The company had revenue of $7.34 billion during the quarter, compared to analyst estimates of $7.33 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 70.6% compared to the same quarter last year. During the same period in the previous year, the business earned $0.54 earnings per share.

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

• U.S. Refreshment Beverages continued strong momentum, with net sales up 10.9% and the eighth consecutive quarter of double-digit growth. Dr Pepper, Ghost, Electrolit, Canada Dry and other brands gained traction, while the energy portfolio surpassed 10% market share.
• U.S. Coffee faced softer-than-expected single-serve demand as value-conscious consumers shifted toward lower-cost formats and private label. KDP lowered its legacy EPS growth outlook to 3%-5% from 4%-6%, while increasing trade promotions and marketing to support the category.
• JDE Peet’s delivered approximately $2.6 billion in sales and $480 million in operating income, with improved market-share trends, pricing discipline, productivity savings and synergies. Its expected contribution to total-company EPS growth was raised to 7%-8% from 6%-7%.
• KDP generated $1 billion of third-quarter free cash flow and plans to use approximately $925 million of proceeds from the Chobani stake and facility transaction for debt repayment. Management also remains on track for the planned early-2027 separation into Beverage Co. and Global Coffee Co., subject to market conditions.

Keurig Dr Pepper Stock Down 5.6%

Shares of NASDAQ:KDP opened at $34.74 on Wednesday. The stock’s 50-day moving average price is $32.58 and its 200-day moving average price is $30.07. Keurig Dr Pepper has a 12-month low of $24.88 and a 12-month high of $36.95. The stock has a market capitalization of $47.28 billion, a P/E ratio of 35.09, a price-to-earnings-growth ratio of 1.75 and a beta of 0.35. The company has a current ratio of 0.48, a quick ratio of 0.28 and a debt-to-equity ratio of 0.74.

Keurig Dr Pepper Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, October 9th. Stockholders of record on Monday, September 28th were paid a dividend of $0.23 per share. This represents a $0.92 dividend on an annualized basis and a dividend yield of 2.6%. The ex-dividend date of this dividend was Monday, September 28th. Keurig Dr Pepper’s dividend payout ratio (DPR) is 92.93%.

Keurig Dr Pepper News Summary

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

• Positive Sentiment: Q3 adjusted EPS of $0.66 beat analyst estimates of about $0.62 and rose from $0.54 a year earlier. Revenue was $7.34 billion, up 70.6% year over year and broadly in line with estimates; beverage growth and the JDE Peet’s acquisition contributed to results. Reuters report on quarterly results
• Positive Sentiment: KDP reaffirmed its 2026 outlook, including expected net sales of $25.9 billion to $26.4 billion. Holding guidance despite a challenging coffee environment may reassure investors. 2026 outlook and separation plans
• Positive Sentiment: Piper Sandler raised its price target to $41 from $38, signaling a more favorable analyst view. Piper Sandler price-target update
• Neutral Sentiment: The company is planning an early-2027 separation, a potentially significant strategic change whose benefits and execution risks remain to be assessed. Q3 earnings call transcript
• Negative Sentiment: Management flagged slower fourth-quarter coffee profits as consumers trade down, highlighting pressure on the U.S. coffee business and near-term margins. Report on coffee-profit pressures

Insider Activity

In other Keurig Dr Pepper news, VP Angela A. Stephens sold 9,500 shares of Keurig Dr Pepper stock in a transaction that occurred on Thursday, September 3rd. The stock was sold at an average price of $32.70, for a total transaction of $310,650.00. Following the sale, the vice president directly owned 55,786 shares of the company’s stock, valued at approximately $1,824,202.20. The trade was a 14.55% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Mary Beth Denooyer sold 12,000 shares of the company’s stock in a transaction that occurred on Tuesday, September 8th. The stock was sold at an average price of $32.55, for a total value of $390,600.00. Following the transaction, the insider owned 84,171 shares in the company, valued at $2,739,766.05. This trade represents a 12.48% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 0.34% of the stock is currently owned by corporate insiders.

Wall Street Analysts Forecast Growth

Several equities research analysts have issued reports on KDP shares. Bank of America lifted their price target on Keurig Dr Pepper from $35.00 to $38.00 in a research note on Friday, July 10th. Morgan Stanley assumed coverage on Keurig Dr Pepper in a report on Thursday, August 20th. They issued an “overweight” rating and a $38.00 price objective for the company. Barclays increased their price objective on Keurig Dr Pepper from $36.00 to $38.00 and gave the company an “overweight” rating in a research report on Monday, August 10th. UBS Group raised their price objective on Keurig Dr Pepper from $38.00 to $39.00 and gave the company a “buy” rating in a report on Friday, August 7th. Finally, HSBC upgraded Keurig Dr Pepper from a “hold” rating to a “buy” rating and boosted their target price for the stock from $37.00 to $40.00 in a research report on Thursday, August 13th. Ten research analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $36.12.

Keurig Dr Pepper Company Profile

Keurig Dr Pepper Inc (NASDAQ: KDP) is a beverage company that operates across coffee and packaged beverages. Its portfolio includes soft drinks, flavored waters, juices, juice drinks, ready-to-drink teas and coffees, sports and energy beverages, and mixers, as well as single-serve coffee brewing systems and pods.

The company’s brands include Keurig, Green Mountain Coffee Roasters, The Original Donut Shop, Dr Pepper, Canada Dry, Snapple, 7UP, A&W, Mott’s, Bai, CORE Hydration and Venom, among others.