Keurig Dr Pepper Q2 2026: Revenue Beats, Adjusted EPS Climbs 16%, Guidance Reaffirmed
KDP sits 25% above its 52-week low of $24.875.
Summary
Keurig Dr Pepper reported Q2 2026 revenue of $7.31B and adjusted EPS of $0.57, beating expectations, and reaffirmed its full-year guidance. The results highlight strong legacy business growth and integration progress, though GAAP earnings were weighed down by acquisition costs.
Key Events · Earnings and Guidance · KDP
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Q2 Revenue and Adjusted EPS Beat
Net sales of $7.31B exceeded the $7.24B consensus, and adjusted diluted EPS of $0.57 rose 16.3% year-over-year, driven by U.S. Refreshment Beverages and the JDE Peet's acquisition.
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Full-Year 2026 Guidance Reaffirmed
Management reiterated its outlook for net sales of $25.9-$26.4B and constant currency adjusted diluted EPS growth in the low-double-digit range, implying confidence in the second half.
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Deleveraging Progress
The company reported a pro-forma management leverage ratio of 4.4x as of June 30, 2026, and continues to target approximately 4.1x by year-end, supported by robust free cash flow of $714M in Q2.
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Segment Performance Mixed
U.S. Refreshment Beverages net sales grew 10.0% with strong volume/mix, while U.S. Coffee declined 3.2% due to volume pressures. JDE Peet's contributed $2.8B in net sales in its first full quarter.
Analysis · KDP · Manufacturing
A solid second quarter saw Keurig Dr Pepper post revenue of $7.31B, edging past the $7.24B consensus, while adjusted EPS of $0.57 beat expectations. The company reaffirmed its full-year 2026 outlook, targeting $25.9-$26.4B in net sales and low-double-digit adjusted EPS growth. Strong U.S. Refreshment Beverages performance and the JDE Peet's acquisition drove results, though GAAP earnings were heavily impacted by acquisition-related costs. The reaffirmed guidance and progress on deleveraging provide stability amid the complex integration and planned separation of the coffee business.
At the time of this filing, KDP was trading at $30.99 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $41.8B. The 52-week trading range was $24.88 to $35.94. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.