Keurig Dr Pepper posts accelerating sales growth
The beverage company reaffirmed its 2026 guidance after full-year net sales rose 8.6% on a constant-currency basis.
Keurig Dr Pepper (KDP) reported full-year net sales growth that accelerated to 8.6% on a constant-currency basis, reaching $16.6 billion. The result marked an improvement from the 8.1% growth recorded in the first quarter of 2026 and was driven by a combination of volume and mix gains of 4.8% and net price realization of 3.8%. Adjusted diluted earnings per share for the year grew 7.3% to $2.05, though the pace decelerated from the 8.6% implied in the first-quarter results.
The fourth quarter underscored the trend, with net sales rising 9.9% on a constant-currency basis to $4.5 billion, up from 8.1% growth in the prior quarter. Volume and mix contributed 3.9% to the gain, while net price realization added 6.0%. Adjusted diluted EPS for the quarter grew just 1.7% to $0.60, reflecting margin pressures that offset top-line strength.
U.S. Refreshment Beverages led the performance, with net sales up 11.9% for the full year to $10.4 billion and 11.5% in the fourth quarter to $2.7 billion. Volume and mix growth reached 9.0% for the year and 7.0% in the quarter, while net price realization contributed 2.9% and 4.5%, respectively. The segment’s adjusted operating income margin expanded to 29.8% for the year and 30.9% in the fourth quarter, benefiting from productivity savings.
The U.S. Coffee segment showed signs of stabilization, with net sales rising 0.6% for the year to $4.0 billion and 3.9% in the fourth quarter to $1.2 billion. The quarterly improvement reversed a 2.3% decline in the first quarter of 2026, though volume and mix declines of 4.2% for the year and 4.1% in the quarter continued to weigh on results. Net price realization of 4.8% for the year and 8.0% in the quarter partially offset the volume weakness. Adjusted operating income margin for the segment compressed to 30.9% for the year and 31.0% in the quarter, reflecting inflationary pressures.
International net sales grew 9.3% for the year and 16.0% in the fourth quarter on a constant-currency basis, reaching $2.2 billion and $604 million, respectively. Volume and mix growth of 3.1% for the year and 6.8% in the quarter, along with net price realization of 6.2% and 9.2%, drove the gains. The segment’s adjusted operating income margin, however, compressed to 25.6% for the year and 27.0% in the quarter.
The company reaffirmed its 2026 guidance, expecting net sales of $25.9 billion to $26.4 billion and constant-currency adjusted diluted EPS growth in the low-double-digit range. The outlook assumes 4% to 6% constant-currency net sales and EPS growth for KDP’s standalone business, plus an incremental contribution from the JDE Peet’s acquisition, which closed on April 1, 2026. Keurig Dr Pepper also disclosed plans to separate into two independent companies—Beverage Co. and Global Coffee Co.—in early 2027, with Rafael Oliveira initially named as future CEO of Global Coffee Co. before his departure was announced for the end of July 2026.