Keurig Dr Pepper (KDP) Q3 2026 Earnings
Adjusted EPS includes a $99 million benefit from tariff refunds (included in both GAAP and Adjusted operating income). It excludes items affecting comparability, including Chobani transactions with a $400 million gain on sale of equity method investment (a $(0.18) per share adjustment) and JDE Peet's acquisition, integration and financing costs ($0.06 per share). GAAP diluted EPS was $0.59.
How Did KDP Stock React to Q3 2026 Earnings?
Did KDP Beat Earnings? Q3 2026 Results
Yes. Keurig Dr Pepper reported Q3 2026 earnings of $0.66 a share on Nov 3, 2026, beating the $0.62 consensus estimate by 6.4%. Revenue was $7.3B against a $7.3B estimate.
Keurig Dr Pepper delivered a solid beat to open its second full quarter with JDE Peet's on the books, posting adjusted EPS of $0.66 against a consensus of $0.62, a 6.38% beat that extended the company's streak of topping Wall Street's earnings estimates to five consecutive quarters. Revenue of $7.34 billion edged past the $7.33 billion consensus and surged 70.5% year over year, with JDE Peet's contributing $2.65 billion of incremental net sales following the April 1 close; legacy KDP net sales grew a healthy 8.6%, driven by 6.5% volume/mix gains and 2.1% net price realization. U.S. Refreshment Beverages led the way with 10.9% sales growth, while U.S. Coffee benefited from a $99 million tariff-refund benefit that helped lift coffee adjusted operating income 11.4%. With investor attention increasingly turning to the planned separation into a standalone beverage company and Global Coffee Co., management reaffirmed full-year guidance calling for net sales of $25.90 billion to $26.40 billion and low-double-digit constant currency adjusted EPS growth, including a 7 to 8 percentage point contribution from JDE Peet's.
- Legacy KDP net sales up 8.6% on 6.5% volume/mix growth and 2.1% net price realization
- U.S. Refreshment Beverages volume/mix growth of 7.2% and net price realization of 3.7%
- U.S. Coffee volume/mix growth of 6.9% partly offset by 4.2% unfavorable net price realization
- $99 million benefit from tariff refunds in GAAP and Adjusted operating income
- Productivity savings and cost synergies
- Incremental contribution from JDE Peet's acquisition (closed April 1)
- Strong JDE Peet's profitability with 18.1% adjusted operating margin
- Higher SG&A including increased marketing, plus inflationary pressures, weighed on margins
- Nine-month Adjusted diluted EPS of $1.65 vs $1.45, up 13.8% (13.1% constant currency)
- Nine-month free cash flow of $1,908 million vs $955 million
“We are pleased with our third quarter results, which featured meaningful net sales and EPS growth, along with healthy free cash flow. Our refreshment beverages portfolio maintained its double-digit sales growth momentum and we drove solid results in coffee, led by strong JDE Peet's profitability. Notably, we achieved these results while stepping up investment behind our brands and capabilities to position our two future companies for success. As we enter the final stretch of the year, we are on track to deliver our 2026 financial commitments and we remain focused on achieving the remaining milestones to enable our planned separation.”
Keurig Dr Pepper CEO, on the earnings call
What Is Keurig Dr Pepper's Outlook?
KDP reaffirmed its 2026 guidance on a constant currency, non-GAAP basis. It expects net sales of $25.9-$26.4 billion and constant currency Adjusted diluted EPS growth in a low-double-digit range. Guidance includes about $8.3-$8.4 billion of net sales and a 7-8 percentage point EPS growth contribution from JDE Peet's. Legacy KDP EPS growth is expected at 3-5% in constant currency, reflecting revised expectations for U.S. Coffee. At current exchange rates, foreign currency translation is forecast to be roughly a one-half percentage point tailwind to full-year net sales and EPS growth.
KDP YoY Financials
| Metric | Q3 2026 | Q3 2025 | Year over year |
|---|---|---|---|
| Revenue | $7.3B | $4.3B | +70.6% |
| Gross Profit | $3.5B | $2.3B | +50.6% |
| Operating Income | $1.3B | $995.0M | +34.0% |
| Net Income | $882.0M | $662.0M | +33.2% |
KDP Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.