| Metric | Value ($ M) | Q1 FY26 | Q2 FY25 |
|---|---|---|---|
| Revenue | 7.3K | 83.8% | 75.6% |
| Total Income | 7.3K | 83.8% | 75.6% |
| Expenditure | 6.7K | 107.5% | 104.6% |
| PBT | 305.00 | 14.6% | 57.5% |
| Net Profit | 142.00 | 47.4% | 74.0% |
| OPM | 8.59% | 10.42pp | 12.98pp |
| NPM | 1.94% | 4.85pp | 11.20pp |
| EPS | 0.04 | 80.0% | 90.0% |
Keurig Dr Pepper Reports Q2 2026 Results and Reaffirms Guidance
06 Aug 2026 · 6 Aug, 4:38 pm
Summary
Keurig Dr Pepper reported strong second quarter 2026 results, with net sales increasing 75.6% to $7.3 billion, largely driven by the JDE Peet’s acquisition. On an adjusted basis, operating income grew 42.9% to $1,478 million, and adjusted diluted EPS increased 16.3% to $0.57. The company reaffirmed its full-year 2026 guidance for net sales and adjusted diluted EPS growth. Management highlighted the strong performance of U.S. Refreshment Beverages and progress on integration and separation efforts.
Key Highlights
- 1
Keurig Dr Pepper reported Q2 2026 net sales of $7.3 billion, an increase of 75.6% on a reported basis and 74.6% on a constant currency basis.
- 2
Excluding the JDE Peet’s acquisition, legacy KDP net sales increased by 7.3% in the second quarter, driven by net price realization and volume/mix growth.
- 3
Adjusted operating income increased by 42.9% to $1,478 million, representing 20.2% of net sales.
- 4
Adjusted net income attributable to common shareholders increased by 15.2% to $783 million, with Adjusted diluted EPS rising 16.3% to $0.57.
- 5
The company reaffirmed its full-year 2026 guidance, expecting net sales between $25.9-$26.4 billion and constant currency Adjusted diluted EPS growth in a low-double-digit range.
- 6
Operating cash flow for the second quarter was $895 million, and free cash flow totaled $714 million.
- 7
The company continues to target a pro-forma management leverage ratio of 4.1x at year-end 2026.
Management Comments
Tim Cofer
We delivered another strong quarter of results, with Q2 EPS exceeding our expectations. U.S. Refreshment Beverages generated double-digit top- and bottom-line growth, KDP International sequentially improved as planned, and our combined coffee platform delivered solid performance, with healthy JDE Peet’s results balanced against U.S. Coffee pressures. We also made meaningful progress on our integration and separation work, including capturing initial cost synergies, advancing key organizational readiness milestones, and generating robust free cash flow to support balance sheet deleveraging. At the midpoint of the year, we remain on track to achieve our 2026 financial and transformation commitments while preparing for a successful separation in early 2027.”
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