Key Highlights

  • Adjusted diluted EPS of USD 0.66 beat the consensus estimate of USD 0.62, while GAAP diluted EPS was USD 0.59.
  • Net sales of USD 7.34 billion rose 70.6% and edged past the consensus estimate of USD 7.33 billion.
  • Legacy net sales grew 8.6% excluding the acquisition, driven by 6.5% Volume and mix growth and 2.1% net price realization.
  • Full year net sales guidance of USD 25.9 to 26.4 billion was reaffirmed, alongside low double digit adjusted EPS growth.

Keurig Dr Pepper Inc. (NASDAQ:KDP) reported third quarter 2026 net sales of USD 7.34 billion, up 70.6% from USD 4.31 billion a year earlier and slightly above the consensus estimate of USD 7.33 billion. Adjusted diluted EPS of USD 0.66 rose 22.2% and topped a consensus estimate of USD 0.62. GAAP diluted EPS was USD 0.59, up 20.4%, and GAAP Net Income attributable to common shareholders rose to USD 810 million from USD 662 million.

The adjusted figures are non-GAAP and exclude items affecting comparability. The JDE Peet's Acquisition closed on April 1, so its contribution was wholly incremental to the year over year comparison, and excluding it, legacy net sales increased 8.6%.

Segment Results Led by Refreshment Beverages

U.S. Refreshment Beverages net sales rose 10.9% to USD 3.0 billion on 7.2% volume and mix growth and 3.7% favorable pricing, and adjusted Operating Income rose 8.3% to USD 884 million, or 29.1% of net sales. U.S. Coffee net sales rose 2.7% to USD 1.0 billion, with 6.9% volume and mix growth offset by 4.2% unfavorable pricing, while adjusted operating income rose 11.4% to USD 353 million, helped by Tariff refunds. The JDE Peet's segment contributed net sales of USD 2.6 billion and adjusted operating income of USD 480 million, a Margin of 18.1%. KDP International net sales rose 11.0% to USD 644 million, although adjusted operating income slipped 0.6% to USD 160 million on cost pressures including the Mexico beverage tax.

Consolidated adjusted operating income rose 52.5% to USD 1.7 billion, or 22.7% of net sales, and included a USD 99 million benefit from tariff refunds. Chief Executive Officer Tim Cofer said refreshment beverages sustained double digit sales growth while coffee posted solid results with JDE Peet's profitability in the lead, and that the company raised spending on brands and capabilities ahead of forming two separate companies.

Reaffirmed Guidance and the Planned Separation

For 2026 the company guided to net sales of USD 25.9 to 26.4 billion and constant currency adjusted diluted EPS growth in a low double digit range. That guidance includes about USD 8.3 to 8.4 billion of net sales and a 7 to 8 percentage point EPS growth contribution from the JDE Peet's acquisition, plus 3% to 5% constant currency EPS growth for the legacy business, reflecting revised views for U.S. Coffee. The company projects currency translation to add roughly one half of one percentage point to full year net sales and EPS growth.

Management said it remains focused on the remaining milestones that enable the planned separation of its beverage and coffee portfolios. Risk factors cited include separation costs, the Debt incurred for the JDE Peet's deal, integration demands and tariffs.

Fourth Quarter Sales Implied by Guidance Against Third Quarter Results

Nine month net sales of USD 18.63 billion against full year guidance of USD 25.9 to 26.4 billion leave USD 7.27 to 7.77 billion for the fourth quarter, compared with USD 7.34 billion in the third. The pro forma management Leverage Ratio stood at 4.1, with principal debt of USD 29.235 billion less cash of USD 1.29 billion. Short term borrowings and the current portion of long term obligations were USD 7.27 billion against USD 3.105 billion at year end 2025, and third quarter net interest expense was USD 474 million against USD 188 million a year earlier.