Keurig Dr Pepper Reaffirms 2026 Outlook After JDE Close

The Tip Desk · November 3, 2026 · 3 min read

Adjusted diluted EPS rose 22.2% to $0.66 as the company kept 2026 net sales guidance at $25.9 billion to $26.4 billion.

Keurig Dr Pepper (KDP) reported third-quarter net sales of $7.34 billion, up 70.6% from a year earlier, as the first full quarter after the April 1 close of the JDE Peet’s acquisition lifted the combined beverage and coffee platform.

On a constant-currency basis, net sales advanced 70.1%. Excluding JDE Peet’s, legacy KDP net sales increased 8.6%, with volume/mix growth of 6.5% and favorable net price realization of 2.1%. That legacy growth rate was faster than the 7.3% increase recorded in the second quarter.

GAAP diluted earnings were $0.59 a share, up 20.4%. Adjusted diluted EPS rose 22.2% to $0.66. GAAP operating income increased 34.0% to $1.3 billion, including an unfavorable year-over-year impact of items affecting comparability, primarily acquisition and integration-related costs. Adjusted operating income increased 52.5% to $1.7 billion and totaled 22.7% of net sales. GAAP and adjusted operating income included a $99 million benefit from tariff refunds.

JDE Peet’s contributed $2.6 billion of net sales and $480 million of adjusted operating income, an 18.1% margin. GAAP operating income for the segment was $289 million. The company said the contribution was wholly incremental year-over-year after the April 1 close.

U.S. Refreshment Beverages net sales increased 10.9% to $3.0 billion, with volume/mix growth of 7.2% and net price realization of 3.7%. Adjusted operating income rose 8.3% to $884 million, or 29.1% of net sales. GAAP operating income was $820 million. The company said adjusted operating income growth was driven by net sales growth and productivity savings, partially offset by inflationary pressures and higher SG&A, including increased marketing.

U.S. Coffee net sales increased 2.7% to $1.0 billion. Volume/mix growth of 6.9% was more than offset by unfavorable net price realization of 4.2%. Adjusted operating income rose 11.4% to $353 million, a 34.7% margin. The company said the increase was primarily driven by the tariff-refund benefit, volume/mix growth, productivity savings, and cost synergies, which more than offset unfavorable net price realization, inflation, and increased marketing.

KDP International net sales increased 11.0% to $644 million, or 7.6% on a constant-currency basis. Adjusted operating income declined 0.6% to $160 million, a 24.8% margin. The company attributed the adjusted operating income decline to cost pressures, including the Mexico beverage tax, and increased marketing, which offset net sales growth and productivity savings.

Operating cash flow was $1.04 billion and free cash flow totaled $1.01 billion.

The company reaffirmed 2026 guidance of $25.9 billion to $26.4 billion in net sales and low-double-digit constant-currency adjusted diluted EPS growth. That outlook now includes approximately $8.3 billion to $8.4 billion of JDE Peet’s net sales and a 7 to 8 percentage point EPS growth contribution from the acquisition, as well as 3-5% constant-currency EPS growth for legacy KDP, 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.

Chief Executive Tim Cofer said the company is on track to deliver its 2026 financial commitments and remains focused on achieving remaining milestones to enable the planned separation.