Keurig Dr Pepper (NASDAQ:KDP) Announces Quarterly Earnings Results

Keurig Dr Pepper (NASDAQ:KDP) posted its quarterly earnings data on Thursday. The company reported $0.39 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.37 by $0.02, FiscalAI reports. The business had revenue of $3.98 billion during the quarter, compared to analysts’ expectations of $7.23 billion. Keurig Dr Pepper had a net margin of 12.52% and a return on equity of 11.14%. The business’s revenue was up 9.4% on a year-over-year basis. During the same period last year, the firm posted $0.42 earnings per share.

Here are the key takeaways from Keurig Dr Pepper’s conference call:

• Closed JDE Peet’s acquisition (April 1) and set plan to separate into two public companies, targeting operational readiness by end-2026 and an early-2027 separation to unlock synergies and focused strategies for Beverage Co. and Global Coffee Co.
• U.S. refreshment beverages delivered double-digit net sales and operating income growth, driven by CSD momentum, energy brands (Ghost, Bloom), new innovations (Canada Dry Fruit Splash, Dr Pepper Creamy Coconut), and DSD/distribution gains.
• U.S. coffee faced meaningful near-term headwinds — pod shipments down ~7%, brewer shipments down high single digits, and Q1 operating income hit by higher green coffee hedges and tariffs; management expects profit pressure in H1 with recovery in the back half.
• Company reaffirmed 2026 outlook: Q1 net sales +8.1% (5.5 pts price, 2.6 pts volume/mix), EPS guide of low double-digit growth for the full year with visibility to high-single-digit EPS growth in Q2 and acceleration into H2.
• Financing pushes leverage materially higher near-term — deal financing implies roughly ~4.5x net leverage at mid-year despite plans to generate ~$2.5B aggregate free cash flow in 2026 and prioritize rapid de‑leveraging to reach investment-grade targets.

Keurig Dr Pepper Trading Up 6.5%

Keurig Dr Pepper stock traded up $1.74 during midday trading on Thursday, reaching $28.28. The stock had a trading volume of 7,297,558 shares, compared to its average volume of 10,708,061. The firm’s fifty day simple moving average is $27.55 and its two-hundred day simple moving average is $27.61. Keurig Dr Pepper has a twelve month low of $24.88 and a twelve month high of $35.94. The company has a debt-to-equity ratio of 0.51, a current ratio of 0.64 and a quick ratio of 0.43. The firm has a market cap of $38.42 billion, a price-to-earnings ratio of 18.53, a PEG ratio of 1.33 and a beta of 0.35.

Keurig Dr Pepper Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, April 10th. Investors of record on Friday, March 27th were paid a $0.23 dividend. The ex-dividend date of this dividend was Friday, March 27th. This represents a $0.92 dividend on an annualized basis and a yield of 3.3%. Keurig Dr Pepper’s dividend payout ratio (DPR) is currently 60.13%.

Wall Street Analyst Weigh In

Several research firms have recently issued reports on KDP. UBS Group decreased their price objective on shares of Keurig Dr Pepper from $36.00 to $32.00 and set a “buy” rating for the company in a report on Tuesday, April 7th. Citigroup dropped their target price on shares of Keurig Dr Pepper from $37.00 to $32.00 and set a “buy” rating on the stock in a report on Wednesday, April 15th. JPMorgan Chase & Co. reduced their target price on shares of Keurig Dr Pepper from $36.00 to $32.00 and set an “overweight” rating for the company in a report on Thursday, April 16th. Zacks Research upgraded shares of Keurig Dr Pepper from a “hold” rating to a “strong-buy” rating in a report on Friday, April 17th. Finally, Weiss Ratings restated a “hold (c-)” rating on shares of Keurig Dr Pepper in a report on Wednesday, January 28th. One analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and nine have issued a Hold rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $31.31.

Hedge Funds Weigh In On Keurig Dr Pepper

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in KDP. NewEdge Advisors LLC boosted its stake in Keurig Dr Pepper by 30.6% in the 1st quarter. NewEdge Advisors LLC now owns 15,488 shares of the company’s stock worth $530,000 after purchasing an additional 3,627 shares during the period. Empowered Funds LLC lifted its position in Keurig Dr Pepper by 248.0% in the 1st quarter. Empowered Funds LLC now owns 69,801 shares of the company’s stock worth $2,389,000 after buying an additional 49,741 shares in the last quarter. Woodline Partners LP lifted its position in Keurig Dr Pepper by 49.2% in the 1st quarter. Woodline Partners LP now owns 100,870 shares of the company’s stock worth $3,452,000 after buying an additional 33,258 shares in the last quarter. Sivia Capital Partners LLC purchased a new stake in Keurig Dr Pepper in the 2nd quarter worth approximately $328,000. Finally, Jump Financial LLC lifted its position in Keurig Dr Pepper by 253.6% in the 2nd quarter. Jump Financial LLC now owns 76,089 shares of the company’s stock worth $2,516,000 after buying an additional 54,571 shares in the last quarter. Institutional investors and hedge funds own 93.99% of the company’s stock.

Key Stories Impacting Keurig Dr Pepper

Here are the key news stories impacting Keurig Dr Pepper this week:

• Positive Sentiment: Q1 beat on EPS and revenue — KDP reported $0.39 EPS vs. a $0.37 consensus and delivered $3.98B in revenue, up ~9.4% year-over-year, supporting the stock’s upside reaction. KDP Surpasses Q1 Estimates
• Positive Sentiment: Company reaffirmed full‑year 2026 outlook and completed the JDE Peet’s acquisition on April 1, signaling management confidence in growth and portfolio scale. Q1 Results & Reaffirms Guidance
• Positive Sentiment: Top-line strength driven by cold/beverage portfolio — strong demand in refreshment beverages offset weakness in K-Cup/coffee, helping revenue and offsetting some product-line softness. Reuters: Beverage Demand Offsets Coffee Weakness
• Positive Sentiment: Analyst and market interest — BNP Paribas Exane upgraded KDP to neutral with a $28 target and unusual call buying activity was reported, indicating bullish positioning ahead of/after results. Analyst Upgrade / Market Activity
• Neutral Sentiment: New partnership activity — a Nestlé partnership was announced that could affect product distribution/innovation but impact timing and magnitude are unclear. Nestlé, KDP Partnership
• Neutral Sentiment: Highlighted as an income-stock candidate (Zacks Rank #1) — may attract yield-focused investors but is not an immediate catalyst. Zacks Income Stocks List
• Negative Sentiment: Margin pressure and profit decline — WSJ and company materials note profit fell on higher costs despite sales growth, which could weigh on near-term EPS upside. WSJ: Sales Rise, Profit Falls
• Negative Sentiment: Leverage concerns remain — pre-earnings coverage flagged debt/leverage as a watch item after the JDE Peet’s deal, which could limit optionality or raise refinancing risk for some investors. Investing.com: Leverage Concerns

Keurig Dr Pepper Company Profile

Keurig Dr Pepper (NASDAQ: KDP) is a North American beverage company formed in July 2018 through the combination of Keurig Green Mountain and Dr Pepper Snapple Group. The company designs, manufactures, markets and distributes a wide range of hot and cold beverages and related equipment, combining Keurig’s single‑serve coffee systems with a large portfolio of carbonated and noncarbonated drink brands. It operates a network of manufacturing, packaging and distribution facilities to supply retail, foodservice and e-commerce channels across its served markets.

The company’s product mix includes single‑serve coffee brewers and coffee pods under the Keurig brand as well as a broad assortment of branded beverages.