$KDP · Keurig Dr Pepper Inc.
Keurig Dr Pepper reported Q3 2026 results with net sales of $7.34B (up 70.6% YoY), GAAP diluted EPS of $0.59 (up 20.4%), and Adjusted diluted EPS of $0.66 (up 22.2%). The JDE Peet's acquisition, which closed April 1, 2026, contributed $2.6B in net sales for the quarter. Legacy KDP net sales grew 8.6% organically, and the company reaffirmed full-year 2026 guidance of $25.9-$26.4B in net sales with low-double-digit constant currency Adjusted EPS growth.
- Q3 net sales of $7.34B, up 70.6% YoY, driven by the JDE Peet's acquisition (closed April 1); legacy KDP organic growth was 8.6%.
- GAAP diluted EPS of $0.59, up 20.4% YoY; Adjusted diluted EPS of $0.66, up 22.2% YoY.
- U.S. Refreshment Beverages net sales rose 10.9% to $3.0B on 7.2% volume/mix growth and 3.7% favorable net price realization.
- U.S. Coffee net sales grew 2.7% to $1.0B; volume/mix up 6.9% but offset by 4.2% unfavorable net price realization.
- Full-year 2026 guidance reaffirmed: net sales of $25.9-$26.4B and constant currency Adjusted diluted EPS growth in low-double-digit range.
Extended-hours trading shows KDP at $35.25, down 4.26% from the regular close of $36.82, despite the headline revenue surge and guidance reaffirmation — suggesting the market is focusing on the U.S. Coffee segment's net price realization headwinds and the revised legacy EPS growth outlook of 3-5% (down from prior expectations).
KDP's first full quarter with JDE Peet's shows the scale of the transformation ($2.6B in new segment sales), but the post-market selloff signals investor concern about U.S. Coffee pricing pressure and the lowered legacy growth outlook.
KDP's results reflect the massive scale shift from the JDE Peet's acquisition, transforming it into a global coffee-and-beverage hybrid. The legacy 8.6% organic growth in Refreshment Beverages compares favorably to peers, but U.S. Coffee's pricing pressure mirrors broader commodity-driven headwinds in the coffee category.
U.S. Coffee segment faces net price realization headwinds (-4.2%) that offset strong volume/mix growth; legacy KDP EPS growth guidance revised to 3-5% due to U.S. Coffee expectations. The planned separation of beverage and coffee portfolios introduces execution risk, and the JDE Peet's integration remains ongoing with acquisition-related costs still flowing through results.