Keurig Dr Pepper Reports Q3 2026 Results and Reaffirms Full-Year Guidance

Overview of Filing

On November 3, 2026, Keurig Dr Pepper Inc. filed a Current Report on Form 8-K under Item 2.02 (Results of Operations and Financial Condition) and Item 9.01 (Financial Statements and Exhibits), furnishing Exhibit 99.1 containing its third-quarter 2026 financial results and full-year guidance.

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Third Quarter 2026 Financial Highlights

• Consolidated Net Sales: Reached $7.34 billion, a 70.6% increase on a reported GAAP basis (+70.1% constant currency). Excluding the acquisition of JDE Peet's (closed April 1, 2026), legacy KDP net sales increased 8.6%, driven by volume/mix growth of 6.5% and net price realization of 2.1%.
• Operating Income:
  • GAAP Operating Income: Increased 34.0% to $1.33 billion.
  • Adjusted Operating Income: Rose 52.5% to $1.67 billion (22.7% of net sales), benefiting from top-line expansion, productivity gains, and a $99 million tariff refund benefit, offset in part by inflationary pressures and elevated marketing expenditures.
• Net Income & EPS:
  • GAAP Diluted EPS: $0.59, up 20.4% year-over-year ($810 million GAAP net income attributable to common shareholders).
  • Adjusted Diluted EPS: $0.66, up 22.2% year-over-year ($905 million Adjusted net income attributable to common shareholders).
• Cash Flow: Operating cash flow for Q3 2026 was $1.04 billion; Free cash flow totaled $1.01 billion.

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Segment Performance Summary

• U.S. Refreshment Beverages: Net sales increased 10.9% to $3.0 billion (volume/mix +7.2%, net price realization +3.7%). Adjusted operating income rose 8.3% to $884 million.
• U.S. Coffee: Net sales rose 2.7% to $1.0 billion (volume/mix +6.9%, net price realization -4.2%). Adjusted operating income grew 11.4% to $353 million, aided by tariff refunds and cost synergies.
• JDE Peet’s: Delivered net sales of $2.6 billion and Adjusted operating income of $480 million (18.1% of net sales).
• KDP International: Net sales increased 11.0% to $644 million (+7.6% constant currency). Adjusted operating income declined 0.6% to $160 million due to cost headwinds (including the Mexico beverage tax) and higher marketing investments.

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Full-Year 2026 Outlook

Keurig Dr Pepper reaffirmed its constant currency, non-GAAP financial guidance for FY 2026:

• Net Sales: Expected between $25.9 billion and $26.4 billion, including $8.3–$8.4 billion from JDE Peet's.
• Adjusted Diluted EPS Growth: Projected in the low-double-digit range on a constant currency basis (comprising a 7–8 percentage point contribution from JDE Peet's and 3–5% growth for legacy KDP).
• Foreign Exchange Impact: Estimated at approximately a 0.5 percentage point tailwind for full-year net sales and EPS growth at prevailing rates.