DailyIQ
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Sector:Consumer DefensiveAll sectors
Last updated 4 minutes ago

KDP·Keurig Dr Pepper Inc.

$.
-. (-.%)
High
$32.05
Open
$31.53
Market Cap
43.09B
52W High
$35.94
Low
$31.38
P. Close
$31.67
P/E
23.52
52W Low
$24.88
Fwd P/E
12.53
DailyIQ Est.
$35.33
Technical Score (1D)
64
BUY
News Sentiment
79
BULLISH
TD Cowen’s recent lift of KDP’s price target to $33 from $31 signals a renewed confidence in the company’s earnings prospects, a view echoed by Bernstein, which raised its target to $39 from $38 on the back of expected stronger consumer beverage demand. These upgrades arrive as KDP reports robust growth in its Zero‑Sugar line and the relaunch of the Creamy Coconut flavor, which should help sustain revenue expansion through 2026. The company’s leadership reshuffle, tied to its planned split into a Beverage Co. and a Global Coffee Co., is intended to streamline operations and clarify governance, potentially improving earnings visibility for the next few weeks. KDP’s declaration of its 13th special dividend underscores cash‑flow strength despite mixed earnings, and investors should watch the payout ratio for signs of sustainability. Analysts project double‑digit EPS growth for Q2, making the upcoming earnings release a critical confirmation of the upgraded outlook. Barclays’ upgrade to Overweight and a $36 target, driven by clearer breakup plans and improved leverage, adds further upside potential for the next trading cycle. The Dog Haus partnership expands KDP’s distribution into restaurant channels, which could broaden revenue streams and enhance brand exposure. Traders should monitor earnings guidance, the timing of the split, and any shifts in consumer coffee demand that could affect margins. Watch for the Q2 earnings call on Aug 6 for updates on revenue mix, margin trends, and the status of the split.
Earnings Summary
Keurig Dr Pepper Inc. (KDP) is a leading beverage and single‑serve brewing company that sells a broad portfolio of well‑known brands such as Dr Pepper, 7UP, and Green Mountain Coffee Roasters through supermarkets, online platforms, and direct‑to‑consumer channels. Operating in the consumer defensive sector, KDP’s core business centers on manufacturing and distributing branded beverages, concentrates, and brewing systems, including K‑Cup pods and single‑serve brewers, positioning it to capture evolving consumer preferences in the non‑alcoholic beverage market. In the most recent two quarters, KDP reported EPS of $0.60 in Q4 2025 and $0.39 in Q1 2026, compared with $0.49 and $0.54 in Q2 2025 and Q3 2025 respectively, indicating a decline in earnings momentum after a period of growth. Revenue mirrored this trend, rising from $4.163 B in Q2 2025 to $4.306 B in Q3 2025 before falling to $4.499 B in Q4 2025 and $3.976 B in Q1 2026; all quarters were EPS beats, with KDP surpassing analyst expectations in each of the last six reporting periods. Historically, the company has maintained a streak of EPS beats and steady revenue growth through 2025, underscoring a pattern of consistent earnings performance even as revenue growth rates have fluctuated. Recent news highlights a leadership reshuffle tied to an upcoming split into a Beverage Co. and a Global Coffee Co., which could reshape governance and revenue streams; analysts have raised price targets to $33 and $39, citing robust Zero‑Sugar line growth and the relaunch of the Creamy Coconut flavor as catalysts for bullish sentiment. Investors should watch for the Q2 2026 earnings release on August 6, paying particular attention to guidance on revenue, margin expansion, and updates on the split timeline and leadership changes, as these factors will be key in validating the optimistic outlook and determining short‑term valuation dynamics.

EPS

EstBeatMiss
$0.34$0.42$0.49$0.56$0.63Q1'25Q2'25Q3'25Q4'25Q1'26Q2'26
QtrEstActual+/−
Q2'26$0.54 - -
Q1'26$0.38$0.39+3.8%
Q4'25$0.43$0.60+40.9%
Q3'25$0.54$0.54+0.4%
Q2'25$0.49$0.49+1.0%
Q1'25$0.38$0.42+9.8%

Revenue

EstBeatMiss
$3.1B$4.3B$5.5B$6.7B$7.9BQ1'25Q2'25Q3'25Q4'25Q1'26Q2'26
QtrEstActual+/−
Q2'26$7.3B - -
Q1'26$3.9B$4.0B+2.5%
Q4'25$3.8B$4.5B+17.5%
Q3'25 - $4.3B -
Q2'25 - $4.2B -
Q1'25 - $3.6B -
Full Earnings BreakdownEstimates, actuals, guidance, and historical context
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Market Data

KDP Stock Snapshot

KDP is currently trading at $31.51, giving Keurig Dr Pepper Inc. a market cap of 43.09B and a P/E ratio of 23.5. Today's range spans $31.38–$32.05, with shares opening at $31.53 and moving down $0.16 (0.5%) from the prior close. DailyIQ's technical score sits at 64/100 (HOLD) with a news sentiment reading of 79/100.

Over the past year KDP has traded between $24.88 and $35.94 - the current price is +26.6% off the 52-week low and -12.3% from the high. 25 analysts cover the stock with a Buy consensus and a mean 12-month target of $34.41 (range $28.00–$42.00), implying upside of +9.2%.

The technical picture for KDP is mixed - score 64/100, HOLD, with the stock at $31.51 (in the middle of its 52-week range) and sentiment bullish at 79/100. For a large-cap in Consumer Defensive with 43.09B in capitalization The current P/E ratio stands at 23.5., this is a fairly common pre-earnings or pre-macro-event posture. Annual range: $24.88–$35.94. Neutral signals at this size often resolve sharply once a catalyst provides directional conviction.

Portfolio construction in Consumer Defensive often uses large-cap names like KDP as tactical swing positions during neutral phases: cheap enough to overweight, liquid enough to exit quickly, and large enough to provide meaningful sector beta. The current 64/100 (HOLD) at $31.51 (in the middle of its 52-week range) and bullish sentiment (79/100) frame the position as a catalyst play within the $24.88–$35.94 annual range rather than a directional bet.