Keurig Dr Pepper's earnings beat expectations and issued strong guidance, leading to a rise in stock price

LootboxPhobia · 2026-02-24T17:10:59+00:00

Keurig Dr Pepper Inc. reported fourth-quarter results that exceeded expectations, with adjusted earnings per share of $0.60 and revenue of $4.5 billion, driving the stock price up by over 2%. Revenue for fiscal year 2026 is expected to reach $25.9-$26.4 billion, significantly above analyst estimates, influenced by the acquisition of JDE Peet’s. The U.S. beverage business showed strong growth, with full-year adjusted earnings per share expected to achieve low double-digit growth.

LootboxPhobia

2026-02-24 17:10:59

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Investing.com - Keurig Dr Pepper Inc. (NASDAQ:KDP) reported fourth-quarter earnings that exceeded analyst expectations, causing its stock to rise over 2% in pre-market trading.

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The company announced adjusted earnings per share of $0.60, beating expectations by $0.01, with revenue of $4.5 billion, surpassing the market forecast of $4.36 billion.

This beverage company’s revenue guidance for fiscal 2026 also significantly exceeds Wall Street estimates, mainly driven by anticipated acquisition of JDE Peet’s.

In the fourth quarter, the company’s revenue grew 10.5% year-over-year, reflecting strong momentum in its U.S. Refreshment Beverage segment. CEO Tim Cofer stated, “2025 was another strong year for KDP. We met our guidance, adapted flexibly to a dynamic operating environment, and performed well in the market through successful innovation and vigorous brand marketing.”

For fiscal 2026, Keurig Dr Pepper expects revenue between $25.9 billion and $26.4 billion, well above the analyst consensus of $17.196 billion. The midpoint of $26.15 billion significantly exceeds expectations, incorporating contributions from the expected acquisition of JDE Peet’s, which is anticipated to close in early April.

The company projects full-year adjusted EPS to grow in the low double digits, including 4-6% growth from standalone operations and contributions from JDE Peet’s.

Adjusted operating income for the fourth quarter increased 4.8% to $1.19 billion, representing 26.5% of net sales. Growth was mainly driven by net sales expansion and productivity savings, partially offset by inflation pressures and increases in selling, general, and administrative expenses.

The U.S. Refreshment Beverage segment outperformed, with net sales up 11.5% to $2.7 billion in the fourth quarter, driven by 7.0% volume/portfolio growth and 4.5% favorable net pricing. The GHOST acquisition contributed 6.1 percentage points to volume growth.

For the full fiscal year 2025, the company reported adjusted EPS of $2.05, a 7.3% increase year-over-year, with revenue of $16.6 billion, up 8.2%.

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