Keurig Dr Pepper Tops Estimates as Q3 Revenue Hits $7.34 Billion, Adjusted EPS $0.66

Keurig Dr Pepper (Nasdaq: KDP) reported third-quarter net sales of $7.34 billion, above the $7.33 billion analysts expected, and adjusted diluted EPS of $0.66 against the $0.62 consensus estimate, in an 8-K filed Tuesday, Nov. 3.

Net sales rose 70.6% from a year earlier, largely reflecting the JDE Peet's acquisition, which closed April 1. GAAP diluted EPS was $0.59, up 20.4%. Excluding JDE Peet's, legacy KDP net sales rose 8.6%, driven by volume/mix growth of 6.5% and favorable net price realization of 2.1%.

Segment results

U.S. Refreshment Beverages net sales rose 10.9% to $3.0 billion, and adjusted operating income increased 8.3% to $884 million. U.S. Coffee net sales rose 2.7% to $1.0 billion, and adjusted operating income climbed 11.4% to $353 million, which the company said was primarily driven by a benefit from tariff refunds.

JDE Peet's contributed $2.6 billion in net sales and $480 million in adjusted operating income. KDP International net sales rose 11.0% to $644 million, while adjusted operating income declined 0.6% to $160 million, which the company attributed to cost pressures including the Mexico beverage tax and increased marketing.

Profit, cash and guidance

Consolidated adjusted operating income rose 52.5% to $1.7 billion, including a $99 million benefit from tariff refunds. Operating cash flow was $1.04 billion and free cash flow totaled $1.01 billion.

KDP reaffirmed its 2026 guidance, calling for net sales of $25.9 billion to $26.4 billion and constant currency adjusted EPS growth in a low-double-digit range. Analysts expected full-year revenue of $26.31 billion and adjusted EPS of $2.29. The company said the guidance includes roughly $8.3 billion to $8.4 billion in net sales and a 7 to 8 percentage point EPS growth contribution from JDE Peet's, along with 3% to 5% constant currency EPS growth for the legacy business, reflecting revised expectations for U.S. Coffee.

The company said it remains focused on the remaining milestones toward its planned separation of its beverage and coffee portfolios. The stock closed at $36.82 on Monday, Nov. 2, the last close before the filing, giving the company a market value of about $50.11 billion.