Results
Keurig Dr Pepper Reports Q3 Results and Reaffirms Guidance for 2026
Drove Healthy Q3 Net Sales Momentum, with Growth Across all Legacy KDP Segments
1Delivered Q3 Diluted EPS Increase of More Than 20%
FRISCO, TX and BURLINGTON, MA ( November 3, 2026 ) – Keurig Dr Pepper Inc. (NASDAQ: KDP) today reported results for the third quarter of 2026 and reaffirmed its full year guidance.
Commenting on the performance, CEO Tim Cofer stated, "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.”
Third Quarter Consolidated Results
Net sales for the third quarter increased 70.6% to $7.3 billion and, on a constant currency basis, net sales advanced 70.1%.
Excluding the contribution from the JDE Peet’s acquisition, legacy KDP net sales increased 8.6%, driven by volume/mix growth of 6.5% and favorable net price realization of 2.1%.
GAAP operating income increased 34.0% to $1.3 billion, including an unfavorable year-over-year impact of items affecting comparability, primarily due to acquisition and integration-related costs.
8Adjusted operating income increased 52.5% to $1.7 billion and totaled 22.7% of net sales.
The Adjusted operating income growth was driven by net sales growth and productivity savings, partially offset by the impact of inflationary pressures and higher SG&A expenses, including increased marketing.
GAAP and Adjusted operating income also included a $99 million benefit from tariff refunds in the quarter.
GAAP net income attributable to common shareholders increased 22.4% to $810 million, or $0.59 per diluted share, including an unfavorable year-over-year impact of items affecting comparability.
Adjusted net income attributable to common shareholders increased 22.1% to $905 million and Adjusted diluted EPS increased 22.2% to $0.66.
GAAP and Adjusted EPS growth were driven by the operating income increase, partly offset by higher non-operating expense, interest expense, non-controlling interest, and earnings allocated to preferred investors.
Operating cash flow for the third quarter was $1.04 billion and free cash flow totaled $1.01 billion.
1 Adjusted financial metrics presented in this release are non-GAAP, excluding items affecting comparability.
Adjusted growth rates are non-GAAP, excluding items affecting comparability and presented on a constant currency basis.
See reconciliations of GAAP results to Adjusted results on a constant currency basis in the accompanying tables.
The Company does not provide reconciliations of forward-looking non-GAAP measures to GAAP measures, due to the inability to predict the amount and timing of impacts outside of the Company's control on certain items, such as non-cash gains or losses resulting from mark-to-market adjustments of derivative instruments, among others, which could be material.
Reconciling such items would require unreasonable efforts.
Third Quarter Segment Results
U.S. Refreshment Beverages
Net sales for the third quarter increased 10.9% to $3.0 billion, driven by volume/mix growth of 7.2% and favorable net price realization of 3.7%.
GAAP operating income increased 2.2% to $820 million, including an unfavorable year-over-year impact of items affecting comparability.
Adjusted operating income increased 8.3% to $884 million and totaled 29.1% of net sales.
Adjusted operating income growth was driven by net sales growth and productivity savings, partially offset by the impact of inflationary pressures and higher SG&A expenses, including increased marketing.
U.S. Coffee
5Net sales for the third quarter increased 2.7% to $1.0 billion.
4Volume/mix growth of 6.9% was partially offset by unfavorable net price realization of 4.2%.
GAAP operating income increased 34.6% to $319 million, including a favorable year-over-year impact of items affecting comparability.
Adjusted operating income increased 11.4% to $353 million and totaled 34.7% of net sales.
The Adjusted operating income growth was primarily driven by the benefit from tariff refunds, as well as volume/mix growth, productivity savings, and cost synergies.
These factors more than offset unfavorable net price realization, the impact of inflationary pressures, and increased marketing.
JDE Peet’s
Net sales for the third quarter were $2.6 billion.
GAAP operating income was $289 million, including an unfavorable impact of items affecting comparability, primarily due to acquisition and integration-related costs.
Adjusted operating income was $480 million and totaled 18.1% of net sales.
The JDE Peet’s acquisition closed on April 1, and therefore the segment contribution was wholly incremental to the Company on a year-over-year basis.
KDP International
6Net sales for the third quarter increased 11.0% to $644 million.
On a constant currency basis, net sales increased 7.6%, driven by favorable net price realization of 5.7% and volume/mix growth of 1.9%.
GAAP operating income increased 3.3% to $158 million, including a favorable year-over-year impact from currency translation.
7Adjusted operating income declined 0.6% to $160 million and totaled 24.8% of net sales.
The Adjusted operating income decline was driven by cost pressures, including the Mexico beverage tax, and increased marketing, which offset net sales growth and productivity savings.
2026 Guidance
The 2026 guidance provided below is presented on a constant currency, non-GAAP basis.
The Company does not provide reconciliations of such forward-looking non-GAAP measures to GAAP measures, due to the inability to predict the amount and timing of impacts outside of the Company's control on certain items, such as non-cash gains or losses resulting from mark-to-market adjustments of derivative instruments, among others, which could be material.
Reconciling such items would require unreasonable efforts.
For 2026, KDP expects net sales of $25.9-$26.4 billion and constant currency Adjusted diluted EPS growth in a low-double-digit range.
3This guidance now includes approximately $8.3-$8.4 billion in net sales and a 7 to 8 percentage point EPS growth contribution from the JDE Peet’s acquisition, as well as 3-5% constant currency EPS growth for KDP's legacy business, due to revised expectations for U.S. Coffee.
At current exchange rates, foreign currency translation is forecasted to approximate a one half of one percentage point tailwind to 2026 full year net sales and EPS growth.
Investor Contact:
Investor Relations
Keurig Dr Pepper (Nasdaq: KDP) is a leading beverage company with more than 150 owned, licensed and partner brands that meet a wide range of needs and occasions.
Our North American refreshment beverage business holds leadership positions across carbonated soft drinks, water, juice and mixers with a portfolio of iconic brands such as Dr Pepper®, Canada Dry®, Mott’s®, A&W®, Peñafiel®, GHOST®, 7UP®, Snapple®, Clamato® and Core Hydration®.
Our global coffee business spans more than 100 markets and includes the leading Keurig® single‑serve brewing system in the U.S. and Canada, along with powerhouse brands such as Peet’s, L’OR and Jacobs, and other regional coffee leaders.
2Our more than 50,000 employees aim to enhance the experience of every beverage and coffee occasion while making a positive impact for people, communities and the planet.
Learn more at www.keurigdrpepper.com and follow us @KeurigDrPepper on LinkedIn and Instagram.
These statements are based on the current expectations of our management, are not predictions of actual performance, and actual results may differ materially.
This release includes certain non-GAAP financial measures, which differ from results using U.S. Generally Accepted Accounting Principles (“GAAP”).
These measures may differ from similarly titled non-GAAP financial measures presented by other companies, and other companies may not define the non-GAAP financial measure in the same way.
Non-GAAP financial measures typically exclude certain charges, including one-time costs that are not expected to occur routinely in future periods, described by the Company as "items affecting comparability".
Refer to page A- 6 for the Company's description of items affecting comparability for each period presented.
The Company uses non-GAAP financial measures to evaluate our operating and financial performance and to compare such performance to that of prior periods and to the performance of our competitors.
Additionally, we use non-GAAP financial measures in making operational and financial decisions and in our budgeting and planning process.
We believe that providing non-GAAP financial measures to investors helps investors evaluate our operating performance, profitability and business trends in a way that is consistent with how management evaluates such performance.
Adjusted gross profit is defined as Net sales less Cost of sales, as adjusted for items affecting comparability as described on page A- 6 .
Management believes that Adjusted gross profit is useful for investors in evaluating the Company’s operating results and understanding the Company's operating trends by adjusting certain items that can vary significantly depending on specific underlying transactions or events, thereby affecting comparability.
Adjusted operating income is defined as Income from operations, as adjusted for items affecting comparability as described on page A- 6 .
Management believes that Adjusted operating income is useful for investors in evaluating the Company’s operating results and understanding the Company's operating trends by adjusting certain items that can vary significantly depending on specific underlying transactions or events, thereby affecting comparability.
Adjusted net income is defined as Net income, as adjusted for items affecting comparability as described on page A- 6 .
Management believes that Adjusted net income is useful for investors in evaluating the Company’s operating results and understanding the Company's operating trends by adjusting certain items that can vary significantly depending on specific underlying transactions or events, thereby affecting comparability.
Adjusted diluted EPS is defined as Diluted EPS, as adjusted for items affecting comparability as described on page A- 6 .
Management believes that Adjusted diluted EPS is useful for investors in providing period-to-period comparisons of the results of our operations since it adjusts for certain items affecting overall comparability.
Adjusted gross margin is defined as Adjusted gross profit divided by Net sales.
Management believes that Adjusted gross margin is useful for investors as supplemental measures to evaluate our operating performance and ability to manage ongoing costs.
Adjusted operating margin is defined as Adjusted Income from operations divided by Net sales.
Management believes that Adjusted operating margin is useful for investors as supplemental measures to evaluate our operating performance and ability to manage ongoing costs.
Adjusted interest expense .
Adjusted interest expense is defined as Interest expense, net, as adjusted for items affecting comparability as described on page A-6.
Management believes that Adjusted interest expense is useful for investors in evaluating our performance and establishing expectations for the impacts of interest expenses.
Adjusted EBITDA is defined as EBITDA, as adjusted for items affecting comparability as described on page A- 6 .
EBITDA is defined as Net income as adjusted for interest expense, net; provision for income taxes; depreciation expense; amortization of intangibles; and other amortization.
Management believes that Adjusted EBITDA is useful for investors in evaluating the Company's operating results and understanding the Company's operating trends by adjusting certain items that can vary significantly depending on specific underlying transactions or events, thereby affecting comparability.
Management leverage ratio is defined as KDP's total principal amounts of debt less cash and cash equivalents, divided by Adjusted EBITDA.
Management believes that the Management leverage ratio is useful for investors in evaluating the Company’s liquidity and assessing the Company's ability to meet its financial obligations.
Free cash flow is defined as net cash provided by operating activities adjusted for purchases of property, plant and equipment, proceeds from sales of property, plant and equipment, and certain items excluded for comparison to prior year periods.
Management uses this measure to evaluate the company’s performance and make resource allocation decisions.
Financial measures presented on a constant currency basis.
Defined as certain financial statement captions and metrics adjusted for certain items affecting comparability, calculated on a constant currency basis by converting our current period local currency financial results using the prior period foreign currency exchange rates.
Because our reporting currency is the U.S. Dollar, the value of financial measures presented in U.S. Dollar will be affected by changes in currency exchange rates.
Therefore, we present certain financial measures on a constant currency basis for greater comparability.
KEURIG DR PEPPER INC.
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