Keurig Dr Pepper Reaffirms 2026 Guidance as Q3 Sales Jump 70.6% With JDE Peet's
Keurig Dr Pepper reaffirmed its 2026 guidance after third-quarter net sales jumped 70.6% to $7.34 billion, lifted by the JDE Peet's acquisition, and adjusted earnings per share rose 22.2% to $0.66.
GAAP net income attributable to common shareholders increased 22.4% to $810 million, or $0.59 per diluted share, up from $0.49, according to the earnings release the beverage and coffee company filed with an 8-K on Tuesday. Adjusted net income attributable to common shareholders rose 22.1% to $905 million.
Excluding JDE Peet's, which KDP acquired on April 1, legacy net sales grew 8.6% on 6.5% volume and mix growth and 2.1% higher net pricing. Adjusted operating income climbed 52.5% to $1.7 billion, or 22.7% of net sales, and both GAAP and adjusted operating income included a $99 million benefit from tariff refunds.
"Our refreshment beverages portfolio maintained its double-digit sales growth momentum and we drove solid results in coffee, led by strong JDE Peet's profitability," CEO Tim Cofer said in the release. He added that the company remains focused on the milestones needed "to enable our planned separation."
Segment results
U.S. Refreshment Beverages, home of Dr Pepper and Canada Dry, grew net sales 10.9% to $3.0 billion on 7.2% volume and mix growth and 3.7% higher pricing. Adjusted operating income rose 8.3% to $884 million.
U.S. Coffee net sales increased 2.7% to $1.0 billion, as 6.9% volume and mix growth outweighed a 4.2% drop in net price realization. Adjusted operating income rose 11.4% to $353 million, mainly on the tariff refund benefit, the company said.
JDE Peet's contributed $2.6 billion of net sales and $480 million of adjusted operating income, all incremental to last year.
KDP International net sales rose 11.0% to $644 million, or 7.6% in constant currency. Adjusted operating income slipped 0.6% to $160 million, which the company attributed to cost pressures including the Mexico beverage tax and higher marketing.
Cash flow
Operating cash flow for the quarter was $1.04 billion and free cash flow was $1.01 billion. KDP paid $938 million in common dividends in the first nine months of 2026.
Guidance reaffirmed
For 2026, KDP still expects net sales of $25.9 billion to $26.4 billion and constant-currency adjusted diluted EPS growth in a low-double-digit range. That outlook includes an estimated $8.3 billion to $8.4 billion of net sales and a 7 to 8 percentage point EPS growth contribution from JDE Peet's, the company said.
For the legacy KDP business, the company now sees 3% to 5% constant-currency EPS growth, which it said reflects revised expectations for U.S. Coffee.
By the numbers
- Net sales: $7.34 billion, up 70.6%
- Legacy KDP net sales: up 8.6%
- GAAP diluted EPS: $0.59, up 20.4%
- Adjusted diluted EPS: $0.66, up 22.2%
- Third-quarter free cash flow: $1.01 billion
- 2026 net sales outlook: $25.9 billion to $26.4 billion, reaffirmed
Sources
- Keurig Dr Pepper Form 8-K with third-quarter 2026 earnings release, filed Nov. 3, 2026 (accession 0001418135-26-000064)
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