Keurig Dr Pepper Q1 2026 earnings beat estimates

The company's U.S. Refreshment Beverages conception drove the quarter, with nett income rising 11.9% to $2.6 billion. Volume and merchandise premix grew 7.2%, and nett terms realization added 4.7%. Adjusted operating income for the conception climbed 9.8% to $742 million, the institution said.

Coffee was a anemic point. Net income successful the U.S. Coffee conception fell 2.3% to $857 million, with measurement and premix declining 8.2%. Adjusted operating income successful that conception dropped 21.3% to $199 million, weighed down by outgo pressures, reduced volume, and higher selling spending, Keurig Dr Pepper said.

On a gross basis, margins tightened twelvemonth implicit year, slipping to 52.8% from the 54.6% recorded successful the aforesaid play of 2025. Adjusted operating income for the institution fell 1.9% to $838 million, with inflationary pressures and higher selling, general, and administrative expenses offsetting nett income maturation and productivity savings.

GAAP nett income fell 47.8% to $270 million, oregon $0.20 per diluted share, reflecting transaction and acquisition-related costs tied to the company's takeover of JDE Peet's, the Dutch java and beverage group. The woody closed connected April 1, Keurig Dr Pepper said.

"The twelvemonth is disconnected to a bully start," CEO Tim Cofer said successful a statement. "We delivered a coagulated archetypal quarter, with beardown momentum successful our acold beverage portfolio and java results that tracked with our expectations, adjacent arsenic we navigated elevated costs."

The institution reaffirmed its full-year 2026 guidance, projecting nett income of $25.9 cardinal to $26.4 cardinal and low-double-digit changeless currency adjusted EPS growth. That outlook includes 4-6% changeless currency nett income maturation from its existing business, positive an incremental publication from JDE Peet's.

Following the release, Reuters reported the banal had gained astir 5% successful premarket trading.