Keurig Dr Pepper (NASDAQ:KDP) Releases Quarterly Earnings Results, Beats Expectations By $0.04 EPS

Keurig Dr Pepper (NASDAQ:KDP) released its quarterly earnings data on Tuesday. The company reported $0.66 earnings per share for the quarter, beating the consensus estimate of $0.62 by $0.04, Zacks reports. Keurig Dr Pepper had a net margin of 7.10% and a return on equity of 10.80%. The company had revenue of $7.34 billion during the quarter, compared to analyst estimates of $7.33 billion. During the same quarter in the previous year, the business posted $0.54 EPS. Keurig Dr Pepper’s revenue for the quarter was up 70.6% compared to the same quarter last year.

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

• U.S. Refreshment Beverages continued strong momentum, with net sales up 10.9% and the eighth consecutive quarter of double-digit growth. Dr Pepper, Ghost, Electrolit, Canada Dry and other brands gained traction, while the energy portfolio surpassed 10% market share.
• U.S. Coffee faced softer-than-expected single-serve demand as value-conscious consumers shifted toward lower-cost formats and private label. KDP lowered its legacy EPS growth outlook to 3%-5% from 4%-6%, while increasing trade promotions and marketing to support the category.
• JDE Peet’s delivered approximately $2.6 billion in sales and $480 million in operating income, with improved market-share trends, pricing discipline, productivity savings and synergies. Its expected contribution to total-company EPS growth was raised to 7%-8% from 6%-7%.
• KDP generated $1 billion of third-quarter free cash flow and plans to use approximately $925 million of proceeds from the Chobani stake and facility transaction for debt repayment. Management also remains on track for the planned early-2027 separation into Beverage Co. and Global Coffee Co., subject to market conditions.

Keurig Dr Pepper Stock Down 4.8%

NASDAQ KDP traded down $1.76 during trading hours on Tuesday, hitting $35.06. The company’s stock had a trading volume of 8,897,357 shares, compared to its average volume of 12,106,942. The company has a market capitalization of $47.71 billion, a PE ratio of 35.22, a price-to-earnings-growth ratio of 1.66 and a beta of 0.40. The company has a current ratio of 0.48, a quick ratio of 0.28 and a debt-to-equity ratio of 0.74. Keurig Dr Pepper has a 52 week low of $24.88 and a 52 week high of $36.95. The company’s 50-day simple moving average is $32.54 and its two-hundred day simple moving average is $30.03.

Keurig Dr Pepper Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, October 9th. Investors of record on Monday, September 28th were given a $0.23 dividend. The ex-dividend date of this dividend was Monday, September 28th. This represents a $0.92 annualized dividend and a yield of 2.6%. Keurig Dr Pepper’s dividend payout ratio (DPR) is presently 92.93%.

Insiders Place Their Bets

In other news, VP Angela Stephens sold 9,500 shares of the stock in a transaction that occurred on Thursday, September 3rd. The stock was sold at an average price of $32.70, for a total value of $310,650.00. Following the completion of the sale, the vice president directly owned 55,786 shares of the company’s stock, valued at $1,824,202.20. This represents a 14.55% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Aaron Alt bought 7,862 shares of the company’s stock in a transaction dated Tuesday, August 25th. The stock was bought at an average price of $31.83 per share, for a total transaction of $250,247.46. Following the acquisition, the director directly owned 7,862 shares of the company’s stock, valued at approximately $250,247.46. This represents a ∞ increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Corporate insiders own 0.34% of the company’s stock.

Key Headlines Impacting Keurig Dr Pepper

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

• Positive Sentiment: Q3 earnings exceeded estimates. KDP reported adjusted earnings of $0.66 per share, ahead of the $0.62–$0.63 analyst consensus and up from $0.54 a year earlier. Revenue reached $7.34 billion, narrowly surpassing expectations of $7.33 billion. Keurig Dr Pepper Surpasses Q3 Earnings Estimates
• Positive Sentiment: Profitability and demand improved. Net income attributable to common shareholders increased to $810 million, or $0.59 per share, from $662 million, or $0.49 per share. Reuters reported steady demand for higher-priced beverages, while KDP said growth was broad-based across its legacy segments. Keurig Dr Pepper Beats Quarterly Estimates
• Positive Sentiment: Full-year guidance was reaffirmed. Maintaining its 2026 outlook reduces the risk of an immediate earnings-related forecast cut and signals that management remains comfortable with its expectations. Keurig Dr Pepper Reports Q3 Results
• Neutral Sentiment: KDP’s revenue increased sharply year over year, though the reported 70.6% growth rate reflects the impact of acquisitions as well as operating performance. Investors are reviewing segment-level metrics to determine how much underlying growth exceeded or lagged expectations. Key Metrics From KDP Q3 Earnings
• Negative Sentiment: Margin and valuation concerns may be limiting the reaction. Investors had been warned that softer coffee trends and higher costs could pressure margins. With KDP trading near a 52-week high and at a relatively elevated earnings multiple, the quarterly beat may not have been enough to support further gains. KDP Q3 Earnings Preview

Analyst Ratings Changes

A number of equities research analysts have commented on the stock. Citigroup raised their price target on shares of Keurig Dr Pepper from $32.00 to $37.00 and gave the stock a “buy” rating in a report on Tuesday, July 14th. TD Cowen upped their price target on Keurig Dr Pepper from $31.00 to $33.00 in a research note on Wednesday, July 8th. Deutsche Bank Aktiengesellschaft increased their price target on Keurig Dr Pepper from $30.00 to $32.00 and gave the stock a “hold” rating in a report on Friday, August 7th. Sanford C. Bernstein set a $39.00 price objective on Keurig Dr Pepper in a research note on Wednesday, July 8th. Finally, Bank of America boosted their price objective on Keurig Dr Pepper from $35.00 to $38.00 in a report on Friday, July 10th. Ten equities research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the stock. According to MarketBeat, Keurig Dr Pepper has an average rating of “Moderate Buy” and an average target price of $36.12.

Keurig Dr Pepper Company Profile

Keurig Dr Pepper Inc (NASDAQ: KDP) is a beverage company that operates across coffee and packaged beverages. Its portfolio includes soft drinks, flavored waters, juices, juice drinks, ready-to-drink teas and coffees, sports and energy beverages, and mixers, as well as single-serve coffee brewing systems and pods.

The company’s brands include Keurig, Green Mountain Coffee Roasters, The Original Donut Shop, Dr Pepper, Canada Dry, Snapple, 7UP, A&W, Mott’s, Bai, CORE Hydration and Venom, among others.