revenue
25900–26400 $million
FY 2026
official guidance
| Revenue | $20.1B |
|---|---|
| Operating income | $3.3B |
| Net income | $1.3B |
| Free cash flow | $2.0B |
| Operating margin | 16.2% |
| Net margin | 6.7% |
| Return on equity | 4.6% |
| Period | TTM 2026-06-30 |
OpenFilings analyst
Agentic read of the latest earnings call — recommendation updates when we process a new transcript. Research synthesis, not investment advice.
Strong beverage execution is offset by weak U.S. Coffee, elevated leverage, and execution risk around integration and separation.
Latest call · Q2 2026Hold: KDP delivered a strong Q2, with legacy sales up 7.3%, U.S.
Refreshment Beverages sales up 10%, operating income up 42.9%, and EPS up 16.3% to $0.57, while reaffirming low-double-digit 2026 EPS growth. However, U.S. Coffee remains materially weak, JDE Peet's Q2 profit benefited from timing and is expected to be the 2026 quarterly high watermark, and leverage remains elevated at 4.4x after the acquisition.
U.S. Refreshment Beverages should remain the main earnings driver, but management expects growth to moderate from the double-digit first-half pace as tougher comparisons begin.
U.S. Coffee should see better second-half profit as lower-cost inventory and easing tariff effects flow through, but Q2 pod shipments fell 8.3% excluding the Peet's reporting shift and full-year performance is still expected to be subdued.
JDE Peet's synergies should build in the second half, but investors should adjust for the disclosed timing benefit and the transfer of Peet's K-Cup economics back into U.S. Coffee.
Coffee commodity volatility, pricing anniversaries, and consumer value-seeking behavior remain near-term swing factors.
U.S. Refreshment Beverages has a credible growth platform: energy share crossed 9%, with Bloom, GHOST, and C4 supporting distribution and innovation momentum.
The planned $400 million JDE Peet's cost-synergy program is strategically important; only a modest benefit was realized in Q2, so delivery beyond 2026 remains central to the thesis.
The early-2027 separation could unlock value if management establishes effective standalone leadership and capital structures, but the Global Coffee Co. CEO search remains unfinished.
KDP's competitive position in energy is improving, but the company must sustain share gains across partner brands and owned platforms rather than rely on favorable category growth alone.
Management acknowledged that JDE Peet's Q2 operating profit was likely the high watermark for its 2026 quarterly contribution because of timing benefits and the Peet's K-Cup transition.
U.S. Coffee operating income declined 24.7%, while pod shipments declined 8.3% excluding the reporting change; management's second-half recovery remains largely qualitative.
The CEO search for Global Coffee Co. has no announced timetable, despite analyst concern that delays could threaten separation readiness.
Pro forma management leverage is still 4.4x and year-end deleveraging to 4.1x depends on approximately $2.5 billion of full-year free cash flow.
The 2026 EPS outlook now includes a 2% non-cash depreciation headwind from purchase-price allocation, offset by an anticipated one-time tariff refund, making the guidance quality less clean.
revenue
25900–26400 $million
FY 2026
official guidance
revenue
8500–8700 $million
FY 2026
official guidance
revenue growth
4–6 pct
FY 2026
official guidance
eps diluted
—
FY 2026
official guidance
OpenFilings analyst view from primary-source filings and earnings calls — not investment advice.
KEURIG DR PEPPER INC.
KEURIG DR PEPPER INC.
KEURIG DR PEPPER INC.
KEURIG DR PEPPER INC.
KEURIG DR PEPPER INC.
KEURIG DR PEPPER INC.